The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Mexico: And now for the good news

Prospects for the beleagured Mexican banking sector have improved following an agreement on restructuring that many analysts feel goes beyond expectations

Last month's decision by the lower house of congress to establish a new bail-out vehicle brought to an end a nine month dispute over who should pay the costs of the 1994 banking crisis.

Despite opposition cries that the public should not foot the bill for banks' errors, in this latest deal the government remains responsible attracting criticism from opposition politicians that the exercise is largely cosmetic. But the agreement has made considerable advances in the areas of foreign ownership of banks and the restricting of deposit insurance.

"People feel this agreement exceeds expectations in terms of structure, timing and scope," says Daniel Abut, an analyst with Goldman Sachs, though he notes that share prices have not so far responded to the news. "This is not the end of the [bad debt] problem but at least we have an end to the noisy and nasty discussions about who should pay. Those discussions took too long and hurt the banks." The new bill is likely to be approved when it reaches the Mexican Senate.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree