Legislative Reforms Open Mexico’s Financial Sector to Foreign Institutions
In 2014, the Mexican government announced comprehensive reforms of the regulations governing financial institutions.
Pacific pioneers: Asian financial institutions enter Mexico
Asian banks are crossing the Pacific as some of the primary pathfinders in Mexico's newly open financial services markets.
By Francisco Garcia-Naranjo González, Francis Zou and Mariel Martínez Zárate
By Francisco Garcia-Naranjo González, Francis Zou and Mariel Martínez Zárate
For most of Mexico's history, foreign state-owned entities were not permitted to participate in the capital ownership of a Mexican bank. This meant that Mexico's heavily regulated financial services industry was effectively closed to all banks whose owners or investors included foreign sovereign entities.
This changed in 2014, when Mexican legislative reforms began allowing these banks to establish subsidiary operations in Mexico in limited circumstances.
Almost immediately, Asian banks began crossing the Pacific as some of the primary pathfinders in Mexico's newly open financial services markets.
The trends that initially drew Chinese, South Korean and other Asian financial institutions to set up their own banking institutions in Mexico continue in the current investment climate. These include opportunities to provide financing support for Asia-based multinational manufacturers and other Asia-based corporations in Mexico.
Depending on political and trade developments over the next few years, the growth potential for Asian financial institutions in Mexico could continue to increase even further.
Asian banks were among the first to take advantage of new opportunities for foreign financial institutions in Mexico.
Pan-Pacific Pathfinders: Asian Banks, Mexico and the US
Asian banks were among the first to take advantage of these newly available opportunities for foreign financial institutions in Mexico.
Challenges and Creativity: Establishing a Foreign-owned Bank Subsidiary in Mexico
Obtaining the authorization to establish or acquire a bank in Mexico requires creativity, a deep understanding of Mexican regulatory authorities' procedures and a patient investment approach.
Checklist: How to Set Up and Operate an Asian Bank in Mexico
Establishing a bank in Mexico can be time-consuming and present varying detailed challenges, depending on a bank’s individual circumstances.
