Newsletter 5 versión inglés

Banks and Other Financial Institutions Overview

Comparing the Financial System in Mexico with other countries with older financial sectors and with greater competition is like comparing the aerospace career of other countries such as the United States of America, China or Russia with the one that exists in this country- This means that I I do not remember that Mexicans have ever lunch a rocket to the moon; I remember that 10 years ago, on one occasion, I heard a phrase from a finance expert professor of economics who said:

"In my reflection on the competition of the United States of America's financial institutions system, in every corner there is a bank or a non-bank financial institution and in Mexico as a result of its delay in every corner there is a Cantina" Although the phrase sounds painful in Mexico there are very few banking options despite being a country with great opportunities and this sector has grown very slowly in number of "players" but even so the banks that already exist currently monopolize the financial market growing and growing The number of its branches and the earnings that they report to the Mexican authorities for the loans that they grant and originate until the end of December 2019 and the beginning of 2020 are as follows:

1.- Interest Earned on Loans to Governments (this means that lending money to Mexican governments or restructuring their debts is their best and biggest business).

2.- Interest earned on consumer loans (credit cards and loans to individuals and government or business employees)

3.- Interest earned on mortgage product commissions (real estate)

4.- Interest earned on loans to SMEs (Small and Medium Enterprises)

5.- Others.

Although the financial regulation of the authorities in Mexico is sometimes a Spaghetti, historically there has NEVER been a problem of money laundering by this sector of Non-banking institutions. The government, through its competition improvement areas, should help and differentiate all these banking and non-banking entities by their capital amounts, size and number of employees, in addition to generating new rules and laws for the financial sector to promote new financial products from institutions that are currently open and working but also invite new international players to benefit from current tax programs in Mexico and take advantage of the exchange rate or Exchange Rate 20:1 to come to the Mexican and Latin American market to participate with specialized financial products and with sufficient capital to generate greater supply in the country since all this banking hoarding and undifferentiated super regulation of the domestic non-banking financial institutions sector reduces or reduces competition to the money and capital markets in Mexico and Latin America leaving few options for consumers creditors and the country's business sectors.