Abstracts » Business, international

Buddy, can you spare a peso

Article Abstract:

Mexico has seen a recovery in consumer spending, interest rates and inflation, and banks are recovering from bad debt problems, though they are reducing the amount they lend. Liquidity could be one reason why, and high interest rates, though rates have fallen. Capital adequacy requirements have also been cited, but delays in bankruptcy and loan guarantee legislation appears the most popular reason for the drop in lending. Some sectors, like agriculture and construction, tend to have poor repayment records. Mergers and takeovers may help banks to lend more.

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The Spanish acquistadores

Article Abstract:

Consolidation in the Mexican banking industry is examined, including the role of Spanish banks in the consolidation process.

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The opposition learns to oppose

Article Abstract:

The Mexican political opposition has become involved in a debate on the country's bank bail-out. Fobaproa is the Mexican deposit protection fund which took over some bad debt claims following the 1994 peso crisis. The government has proposed converting promissory notes used to pay the banks, into public debt. The Party of the Democratic Revolution opposed this move, while the National Action Party initially supported the government, but has since argued that the rescue of the banks was unlawful. An agreement is needed to help the Mexican banking system to recover.

Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors, Banking Regulation, Political activity, Political aspects, National Action Party (Mexico), Banking law

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