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Mexico’s Financial Regulatory Landscape Sees Major Updates: What You Need to Know

Mexico’s financial regulatory landscape has undergone significant changes in recent months. The country’s securities market and investment funds laws have been amended, while its central bank and banking authority have introduced new rules for derivatives, loans, and large exposures. Here is a summary of the key developments:

Simplified Listing Regime

The Securities Market Law has been updated to establish a simplified listing regime, making it easier for companies to list their shares on the stock exchange.

• Investment Funds Law: The law now includes provisions for “Hedge Funds”, a type of alternative investment vehicle.

Large Exposures Regime

The National Banking and Securities Commission (CNBV) has adjusted its Large Exposures regime to include sovereigns and their central banks, effectively reducing the risk exposure for banks operating in Mexico.

Derivatives Operations

Banco de México, the country’s central bank, has modified its risk management rules applicable to derivatives operations, aiming to strengthen financial stability and reduce market risks.

Loans Backed by Payroll Deposits

The central bank is also working on a project to modify rules applicable to loans backed by payroll deposits, which are commonly used by Mexican consumers. The updates aim to improve loan quality and reduce credit risk.

Banking License Types

Meanwhile, the CNBV is proposing changes to banking license types, with the goal of increasing financial inclusion and promoting competition in the sector.

For those interested in learning more about these developments, we have provided links to downloadable documents below.

This article is brought to you by the BBVA Research team, comprising:

• Gabriela López, Senior Economist
• Crista Pérez, Economist