How is the structure of the Mexican financial system?


The Mexican financial system it is one of the important elements for economic development, since it is through it that the savings of Mexicans are mobilized, so that they can be used efficiently.

According to the Bank of Mexico (Banxico), the Finance system it means that the resources that allow real economic activity to be carried out, that is, to produce and consume, reach from those individuals who have money left over at a given moment to those who need it, in addition to facilitating the sharing of risks.

“These entities (of the Finance system) cover the various needs for moving money, by making available to customers and users the mechanisms required for savings or investment through multiple agents”, explains the Espinosa Yglesias Study Center (CEEY) in an analysis.

Meanwhile, the World Bank emphasizes that sound financial systems support economic growth and development in countries.

“Financial stability, both globally and nationally, creates jobs and improves productivity. It gives people confidence to invest and save. Strong banking systems and capital markets enable the efficient flow of funds to more productive uses, help governments raise investment capital, maintain financial safety nets, and speed payments securely across borders. .

It also adds that good access to financing improves the well-being of the country, since people, by being able to access this type of credit, can meet needs, prosper, expand opportunities and improve their living standards.

Meanwhile, to regulate these entities there are different financial authorities. For example, Banxico, which is an autonomous institution that issues rules so that the system works “in a clear and transparent manner” for users.

There is also the Ministry of Finance and Public Credit (SHCP), which coordinates the regulation and supervision efforts of other financial authorities, such as the National Banking and Securities Commission (CNBV).

This commission, which is a decentralized body of the Ministry of Finance and Public Credit (SHCP), has the power to authorize, regulate, supervise and sanction the various sectors and entities that make up the financial system in Mexico, as well as the natural and legal persons who carry out activities considered in the laws related to the financial system.

There is also the National Retirement Savings System Commission (Consar), which authorizes and supervises the Afores; the National Insurance and Surety Commission (CNSF), which does its thing with insurance companies; the Institute for the Protection of Bank Savings (IPAB), which guarantees insurance for all bank deposits; as well as the National Commission for the Protection and Defense of Users of Financial Services (Condusef), which protects and defends the rights of users of the Finance system. What sectors make it up?

The Ministry of Finance states that the CNBV is in charge of regulating six sectors of the financial sector:

  1. Public funds and trusts
  2. banking sector
  3. Popular savings and credit sector
  4. Non-bank financial intermediaries sector
  5. stock market
  6. derivatives industry

Meanwhile, the Consar is in charge of supervising and regulating the Afores and the Siefores, while the CNSF is responsible for life insurance institutions, accident and illness insurance, damage insurance, insurance institutions specializing in pensions, reinsurance institutions, as well such as bonding institutions, insurance and bonding agents, reinsurance intermediaries, external advisors, among others.



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