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AMLO government willing to grant more banking licenses to spur competition

Mexican President Andres Manuel Lopez Obrador said his government is willing to grant more banking licenses in an effort to boost competition and spur financial inclusion, Reuters reported.

Speaking at the country's annual banking convention in Acapulco, AMLO, as the president is known, also reiterated that the government will not introduce legislation to regulate fees and commissions charged by local banks.

Luis Nino de Rivera, the head of Mexico's banking association, said domestic lenders are committed to "auto regulation," adding that they should not impose any commissions for digital accounts.

The government believes more competition in the banking sector will push banks to charge lower commissions, which should increase financial inclusion in a country where millions of people do not have bank accounts.

The issue of commissions has generated quite a lot of debate in recent months after a member of AMLO's party proposed to elimination certain fees charged by banks. However, the president has since distanced himself from the plan, saying the "government's position is not to promote reform initiatives that may generate distrust in investors."