Weekly Report - 25 October 2012 (WR-12-42)

MEXICO | Protecting its banking sector from de-capitalisation risks. On 22 October Mexico’s financial stability council (CEF) revealed that it had established a new set of measures aimed at ensuring that international banks do not de-capitalise their Mexican subsidiaries in order to solve any financial problems they may face in their home countries. According to the CEF, which is comprised of Mexico’s finance ministry (SHCP), the central bank (Banxico) and banking sector representatives, it presented a new set of rules governing commercial banking operations of ‘individuals with relevant links’ to all banks operating in the country on 10 October. A CEF statement explained that individuals with relevant links are all those natural persons and their spouses and relatives that directly or indirectly control 2% or more of the total assets of a commercial bank, a financial holding company, or other financial institutions. In addition, the definition also extends to the members of the administrative boards of financial institutions, or firms that make up a holding company of a financial institution.

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