The seven systemically importantMexican banks recently selected by local regulator CNBV are ready to meet therequired additionalcapital buffer for G-SIBs, Fitch Ratings said on May 4.
The banks include , ,Banco Santander (México)SA, Banco Mercantil delNorte SA, HSBC MéxicoSA Institución de Banca Múltiple Grupo Financiero HSBC, and .
The minimum capitalization ratioas required of banks is currently set at 10.5%. Fitch noted that systemic bankshave shown a total regulatory capital ratio of 14.20% and a Tier I regulatorycapital ratio of 12.48%, as of February. Fitch adds that Mexican commercialbanks have shown a total regulatory capital ratio and a Tier I regulatorycapital ratio of 14.52% and 12.99%, respectively. Of the seven banks, five haveconsiderable maneuvering room to maintain their ratio, with the other twosomewhat closer to the limit, the rating agency noted.
Increases in the banks' portfoliowill necessitate higher grades and higher capital requirements Nevertheless,Fitch believes challenges to meet compliance will be low in all cases, due tobanks' strong ability for internal capital generation and/or support fromparent companies, or a high propensity by shareholders to inject capital ifrequired.
According to Fitch, BBVA Bancomerexceeds its required level by 1.70 percentage points. Banamex and BancoSantander exceed their required minimums by 1.97 and 3.73 percentage points,respectively. Banorte exceeds its requirement by 3.26 percentage points.Scotiabank Mexico, HSBC Mexico and Banco Inbursa exceed their minimums by 1.12,1.19 and 6.60 percentage points, respectively.