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Challenges in the Mexican Financial Sector

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Author Info
Marcos Bonturi
Abstract

The Mexican banking crisis of 1994/95 necessitated a major government rescue operation - estimated to have cost about 20 per cent of GDP. Since then, financial sector reforms have been implemented and the performance of the Mexican financial system has markedly improved, as shown by indicators of the solidity and profitability of the banking sector. This has also been helped by a large infusion of foreign capital, as international banks entered the Mexican market through mergers and/or acquisitions. Nevertheless, several challenges remain. The banking sector is still relatively inefficient and the level of non-performing loans, though fully provisioned, remains quite high by international standards. The stateowned financial intermediaries, either in the form of development banks or trust funds, still play a large role, overlapping with commercial banks in some parts of the market. And the regulatory framework is often complex and characterised by a high cost of compliance. All ...

Enjeux pour le secteur financier mexicain

La crise du secteur bancaire mexicain de 1994/95 a nécessité la mise en œuvre par le gouvernement d’une opération de sauvetage de grande ampleur - d’un coût estimé à quelque 20 pour cent du PIB. Depuis, des réformes ont été mises en œuvre et les performances du système financier mexicain se sont remarquablement améliorées, comme le montrent les indicateurs de solidité et de rentabilité du secteur bancaire. Ce redressement a aussi été favorisé par une injection considérable de capitaux étrangers liée à l’entrée de banques internationales sur le marché mexicain au moyen de fusions ou d’acquisitions. Néanmoins, plusieurs défis demeurent. Le secteur bancaire reste relativement inefficient et le volume des prêts non productifs est toujours élevé par rapport aux normes internationales, encore que ces prêts soient intégralement provisionnés. Les intermédiaires financiers sous contrôle de l’État , qu’il s’agisse de banques de développement ou de fonds fiduciaires, continuent de jouer un ...

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File URL: http://dx.doi.org/10.1787/444430868135
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Paper provided by OECD, Economics Department in its series OECD Economics Department Working Papers with number 339.

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Date of creation: 23 Aug 2002
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Handle: RePEc:oec:ecoaaa:339-en

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Related research
Keywords: banking; capital markets; deposit insurance; development banks; financial sector; Mexico; monetary policy; peso crisis; supervision; assurance des dépôts; banque de développement; banque; crise du Peso; marchés de capitaux; Mexique; politique monétaire; secteur financier; supervision;

Find related papers by JEL classification:
E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization
E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
G20 - Financial Economics - - Financial Institutions and Services - - - General
N26 - Economic History - - Financial Markets and Institutions - - - Latin America; Caribbean
O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment

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