Mexico banking: Rules of the game
Mar 1, 2013
Mexico’s banks hope to benefit from the country’s fast-tracking of new global regulations
By Ivan Castano
Mexico is toughening up its banking regulations, leading the way in Latin America with both Basel III and the US’s Foreign Account Tax Compliance Act (FATCA). The new rules show little sign of hurting banks’ high profits – and may help improve confidence in a sector dented by last year’s money laundering scandal.
Mexico is one of just three countries globally to have ratified the US Foreign Account Tax Compliance Act (FATCA), which aims to increase US tax revenues by finding citizens’ money held overseas. The US and Mexico agreed in November to share bank account information from both countries’ citizens.
Mexico is also the first Latin American country to introduce Basel III rules. The global framework, established by the Bank for International Settlements, is designed to strengthen banks with higher capital and stricter liquidity requirements. Mexico brought in the capital rules in January, in line...
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