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Privatisation of Banks in Mexico and the Tequila Crisis

Author

Listed:
  • Shanti Chakravarty

    () (Bangor University, UK)

  • Jonathan Williams

    () (Bangor University, UK)

Abstract

The Mexican programme of bank privatisation in the early 1990s was dictated not just by a desire for distancing government from the running of the economy but also by the need to raise money by selling public assets in favour of a particular fiscal stance. The conflict of objectives entailed in this liberalisation process contributed to the subsequent financial crisis entailing the re-nationalisation of banks after a short period of three years at a cost to the exchequer which was five times greater than the money raised at privatisation.

Suggested Citation

  • Shanti Chakravarty & Jonathan Williams, 2013. "Privatisation of Banks in Mexico and the Tequila Crisis," Working Papers 13012, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).
  • Handle: RePEc:bng:wpaper:13012
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    File URL: http://www.bangor.ac.uk/business/research/documents/BBSWP13012.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Mexico; Privatisation; Financial Liberalisation; Banking;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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