Contents -- I. Introduction -- II. Banking Crises in Mercosur -- A. General Overview of Post-Crisis Banking Behavior -- B. The Evolution of Bank Crises in Mercosur -- III. Methodology and Data Issues -- A. The Concept of Convergence and Bank Behavior -- B. The Regression Framework -- C. Data Sources and Issues -- IV. The Results -- A. Descriptive Statistics -- B. Regression Analysis -- V. Robustness Tests -- A. Alternative Benchmarks -- B. Results -- C. The Behavior of Foreign and Large Banks -- VI. Concluding Remarks -- References -- Figures -- 1. Ratio of Public Sector Credit to Gross Domestic Product -- 2. Ratio of Private Sector Credit to Gross Domestic Product -- 3. Ratio of Loans to Assets -- 4. Ratio of Private Sector Credit to Gross Domestic Product -- 5. Capitalization -- 6. Commercial Bank's Reserves to Gross Domestic Product -- Tables -- 1. Mercosur: Bank Behavior Summary Statistics -- 2. Correlations Between Selected Variables -- 3. Summary Results for Absolute and Conditional Convergence -- 4. Results for Absolute and Conditional Sigma Convergence by Country -- 5. Results for Absolute and Conditional Sigma Convergence by Countries -- 6. Summary Results for Sigma Convergence Using Chile and Norway as Alternative Benchmarks -- 7. Absolute Sigma Convergence by Bank Type -- Appendix -- I. Variable Definitions and Sources.