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CNBV revokes Proyecto Coincidir's license, orders liquidation

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CNBV revokes Proyecto Coincidir's license, orders liquidation

Mexican banking regulator CNBV has revoked the operating license of Proyecto Coincidir SA de CV SFP and ordered the company's liquidation, according to a notice in the government's official gazette.

The move follows the popular finance company, known locally as a sofipo, struggling to meet minimum capital requirements for several months and experiencing deterioration in its loan portfolio.

The savings of about 2,000 Proyecto Coincidir customers were reportedly affected in November due to a lack of liquidity at the company, with their deposits stuck in various agricultural loans that the company was unable to recover.

Its loan portfolio reportedly held 1.43 billion Mexican pesos at the end of June, while its delinquency ratio stood at 19.1% — one of the worst NPL ratios among the 44 sofipos in Mexico. Deposits reportedly totaled 1.44 billion pesos.

The company's depositors will receive reimbursement for their savings due to a rescue agreement it signed with Banco de Inversión Afirme SA, El Economista reported.

A number of Mexican sofipos have struggled with minimum regulatory requirements in recent months. Earlier this year, the CNBV revoked the operating license of La Perseverancia del Valle de Tehuacán after a fraud scandal at another sofipo led to a massive withdrawal of savings at La Perseverancia.

Following repeated cases of liquidity problems in the sector, the CNBV's chief earlier said sofipos should refocus on their original mission of increasing financial inclusion.

As of Dec. 17, US$1 was equivalent to 20.10 Mexican pesos.