EXCLUSIVE: Mexico’s imminent financial overhaul dissected

Author: Danielle Myles | Published: 8 May 2013


- Banks operating in Mexico will soon have a simplified process to enforce guarantees and transfer loan portfolios, two cumbersome procedures that have plagued the country’s banking sector;

- The two reforms are included in a collection of bills on the verge of being introduced into congress, that will overhaul the country’s financial sector;

- Another benefit for banks is reduced competition from the 3,000 lenders known as Sofomes, which will be regulated for the first time;

- Collectively the bills will amend 38 laws, and are expected to be passed 90% intact as early as June.

Under the guise of a law to boost retail lending, the Mexican government is about to overhaul the country’s financial system, with amendments expected to pass as early as next month.

In stark contrast to other ambitious financial reforms, including the US’s Dodd-Frank, Mexico’s will in many ways benefit banks operating...