trending Market Intelligence /marketintelligence/en/news-insights/trending/gxT5iOfnGlQd0e7q1vFakA2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us
In This List

Mexico names 7 systemically important banks

Banking Essentials Newsletter - November Edition

University Essentials | COVID-19 Economic Outlook in Banking: Rates and Long-Term Expectations: Q&A with the Experts

Estimating Credit Losses Under COVID-19 and the Post-Crisis Recovery

StreetTalk – Episode 70: Banks' Liquidity Conundrum Could Fuel M&A Activity


Mexico names 7 systemically important banks

Mexico's nationalbanking and securities commission, the CNBV, named seven banks of local systemicimportance based on the country's Basel framework for lending institutions, El Economista reported.

The banks includeBBVA Bancomer SA; , or Banamex;Banco Santander (México) SA;Banco Mercantil del Norte SA;HSBC México SA Institución de BancaMúltiple Grupo Financiero HSBC; BancoInbursa SA; and ScotiabankInverlat SA. Their status as systemically important institutions meansthat a potential bankruptcy could impact the country's financial stability or theeconomy, the report said.

According tothe Basel framework, the banks have to raise a minimum capitalization ratio thatis greater than the 10.5% required for other lenders. The level of additional capitalvaries for each bank as it also depends on the degree of system importance theyhave received.

BBVA Bancomer,which received a degree IV of systemic importance, has to fulfill an additional1.50% of capital. Grade III banks like Banamex and Santander need 1.20% of additionalcapital, while Grade II bank Banorte must generate an additional capital of 0.90%.Meanwhile, HSBC, Inbursa and Scotiabank must each need 0.60% of additional capital.

The banks haveto meet the additional capital requirements in a period of four years, or a 25%increase each year. However, all the banks have capitalization levels above thoserequired by the Basel framework as of the meantime, the report said. For instance,BBVA Bancomer has a minimum capitalization ratio of 13.70% as of February, greaterthan the required 12% for the bank.