CNBV ratifies six banks as of local systemic importance

The National Banking and Securities Commission (CNBV) ratified BBVA México, Santander, Citibanamex, Banorte, HSBC and Scotiabank, as institutions of local systemic importance.

Entities considered to be of local systemic importance are those whose potential bankruptcy could affect the stability of the financial system or the economy of a country, and therefore the constitution of an additional capital conservation supplement is foreseen.

In a statement, the regulatory body specified that BBVA Mexico it was once again placed in grade IV of local systemic importance, and therefore an additional capital conservation supplement of 1.50 percentage points is required, this, to the minimum 10.5% required for the rest.

Meanwhile, Santander and Banamex were located in grade III of systemic importance, for which they require 1.20 percentage points more each; Banorte is in grade II, with an additional requirement of 1.20 points; Y HSBC Y scotiabank they remained in grade I, for an additional capital of 0.60 points each.

However, as of last March, these six banks exceeded, by far, the minimum capital required, as well as the additional one because they are considered to be of local systemic importance.

The CNBV it recalled that, based on the provisions on the matter, it evaluates multiple banking institutions annually, to determine which of these should be designated as of local systemic importance, as well as their degree of importance.

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