Doing Business

Doing Business in Mexico 2015

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52 Tax and Legal Services - PwC Mexico General note The Mexican banking system is privately owned and managed. Foreign investment is fully allowed. In order to reduce the risk of a banking crisis and to protect investors' savings in financial institutions, the Banking Savings Protection Law (Ley de Protección al Ahorro Bancario) has been in place to help resolve the banking system bad debt problem, while protecting depositors. There are commissions that supervise and regulate the different segments of the financial sector. These commissions (agencies of the Ministry of Finance) Secretaria de Hacienda y Credito Público (SHCP), include: The National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores-CNBV), the National Commission for Retirement Savings Systems (Comisión Nacional de los Sistemas de Ahorro para el Retiro-CONSAR),the National Insurance and Bonding Commission (Comisión Nacional de Seguros y Fianzas-CNSF) and the National Commission for the Protection and Defence of Users of the Financial System (Comisión Nacional para la Proteccion y Defensa de los Usuarios de Servicios Financieros-CONDUSEF), as well as the Institute for the Protection of Savings (Instituto para la Protección al Ahorro Bancario – IPAB). Banking system Central bank The Mexican banking system is regulated by The Central Bank (Banco de México), which is operationally autonomous in setting monetary policy. The Central Bank is in charge of supervising the operation of the Mexican banking system in order to have an efficient payment system. The National Banking and Securities Commission is a government commission under the Ministry of Finance. Its main activities are to supervise and to regulate financial entities in order to maintain stability and good performance and to protect companies' and individuals' interests. It has the authority to penalize financial institutions when they violate provisions of the laws regulating their activities. The Commission has adjusted accounting standards for banks, stock brokerage firms and other intermediaries in order to match internationally accepted accounting principles and standards. Banking market The banks are divided into three groups: development banks, commercial banks and niche banks. Development banks The development banks include those established by the government to develop specific industries based on the National Development Plan (Plan Nacional de Desarrollo), such as the export trade. Currently, there are seven development banks: Nacional Financiera - Focused on the development of small and medium-size businesses through financing, training and technical assistance. Banco Nacional del Ejército - Its main activity is to provide banking services to the military population and to support the Federal Government.

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