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Condusef finds 82 more Mexican co-ops not fit to accept deposits

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Condusef finds 82 more Mexican co-ops not fit to accept deposits

Mexico's consumer protection agency, Condusef, warned that 82savings co-ops, or Socaps, should not accept deposits from the general public dueto their financial situation.

A recent revision by Focoop, the committee that oversees theregulation of Socaps, found that the financial situation faced by 82 entities, allof which operate at a basic level with assets of less than 13.5 million Mexicanpesos, do not meet the requirements to capture deposits, according to a May 4 statement.

Overall, there are about 420 Socaps operating in Mexico; the82 highlighted by Condusef are in addition to 73 previously identified Socaps alsofacing such limitations.

The 82 co-ops in questionare mainly based in the states of Jalisco, Oaxaca, Michoacán and Mexico State. Condusefrecommended that clients of the Socaps be informed of how to protect their depositsand to keep good records of their accounts.

Focoop began analyzing the operations of Mexico's Socaps in June2015, and those found with less than the required operating conditions may be orderedto close by Mexico's banking regulator, the CNBV.

As of May 4, US$1 was equivalentto 17.74 Mexican pesos.