Mexico’s Financial Regulation Landscape Sees Key Developments: CNBV Issues Fraud Prevention Rules, SHCP Adjusts Assessment Methodology

Strengthening Financial Stability in Mexico

In a move aimed at bolstering the country’s financial stability, Mexico’s regulatory authorities have introduced several key updates to the financial sector. The National Banking and Securities Commission (CNBV) has issued new rules on fraud prevention for banks, while the Ministry of Finance and Public Credit (SHCP) has adjusted its commercial banks’ performance assessment methodology.

CNBV Issues Fraud Prevention Rules

The CNBV has proposed a new regulatory report for Electronic Payments Institutions aimed at collecting client and operation data. This move is expected to enhance transparency and monitoring in the payment system. The commission has also proposed amendments to operational risk capital requirements under the Business Indicator Approach, aimed at strengthening risk management practices among financial institutions.

SHCP Adjusts Assessment Methodology

Additionally, the CNBV has issued new rules on fraud prevention for banks, aiming to prevent fraudulent activities and maintain trust in the banking sector. These developments are seen as crucial steps towards enhancing Mexico’s financial regulatory framework and promoting a more robust and resilient banking sector.

Enhancing Transparency and Stability

As part of its efforts to promote transparency and stability, the CNBV has made available several documents for download, including a report outlining the proposed amendments to operational risk capital requirements. This move is expected to improve transparency and accountability in the financial system, which will help maintain confidence in the system and promote further investment and growth.

Challenging Times Ahead

The updates come at a time when Mexico is working to strengthen its financial system and improve its resilience to external shocks. The country’s economic growth has been driven primarily by consumer spending, which has led to concerns about high levels of debt and the potential for market volatility.

A Strong Financial Sector in Latin America

Despite these challenges, Mexico’s financial sector remains one of the strongest in Latin America, with a large number of domestic and international banks operating in the country. The regulatory updates are expected to help maintain confidence in the system and promote further investment and growth.

Authors’ Note

This report was written by Gabriela López, Senior Economist at BBVA Research, and Crista Pérez, also a Senior Economist at BBVA Research.