Power Rankings of banks in Mexico: Which are the most important and what role does Carlos Slim play?

What is a systemic bank and why is it important? Hand in hand with one of his businesses, the Mexican billionaire Carlos Slim returned to the ‘G7’ of banks in Mexico; These are the reasons for his reinstatement.

After an absence of five years, Carlos Slim, the magnate who doubled his fortune during the six-year term of President Andrés Manuel López Obrador, is back on one of the most important lists in the country and through one of his businesses. We talk about the systemic banks of Mexico.

Banco Inbursa—a financial institution founded by Carlos Slim, who began his career as a businessman in 1955—returned to the list of banks with systemic importance, after being out since 2019.

The reincorporation of Carlos Slim and Inbursa to the so-called ‘G7 Group’ is the result of the growth of that institution in the Mexican market, after movements such as the incorporation of 80 percent of the BNP Paribas portfolio, among other credit segments, he points out. Jeanette Leyva Reus, columnist for El Financiero.

But what are Mexico’s systemic banks? Because they are important? What are the ‘heaviest’ financial institutions in the country? Before you open an account or exchange your money, we’ll tell you everything you need to know.

What are systemic banks in Mexico and why are they important?

Before entering the list of the most important banks or the ‘G7 Group’, we must explain what we are talking about when systemic is mentioned.

According to the National Banking and Securities Commission (CNBV), “there are banks that are members of the financial system in Mexico that, due to the size of their operation, are designated as banks of local systemic importance.”

In Spanish please? Being a systemic bank implies that if one of these institutions were to fail, there was a risk of affecting the stability of the financial system in Mexico and, even worse, that this supposed bankruptcy would affect the Mexican economy.

To avoid these scares or fears, “banks that are classified by the CNBV as institutions of systemic importance are required to increase their capital to prevent any failure from affecting the operation of the System.”

This measure is achieved when banking institutions have a capital conservation supplement additional to 10.5 percent of the Minimum Capitalization Index.

Additionally, you should know that the classification of these institutions is given in grades ranging from 1 to 4, the latter being the most important.

What are the systemic banks in Mexico in 2024?
The CNBV indicates that systemic banks are:

Santander Bank
National Bank of Mexico
Banco Mercantil del Norte, better known as Banorte
HSBC, and
Inbursa Bank.

According to Leyva Reus, columnist for El Financiero, BBVA is the most important bank not only for the Mexican financial system, but for the Mexican economy.

“For years, it has been considered the most important systemic bank, that is, if something were to happen, it would lead the country directly into trouble and into serious problems, but that, given the strength of its capital and the direction led by Eduardo Osuna, It is something very, very far from happening,” says the specialist.

Leyva Reus details that the ‘G7’ foresees the next departure of Citibanamex, a bank that is in a separation process with the aim of consolidating Banamex and Citi México.

What do we know about the 5 new banks in Mexico?

In the midst of the separation of Citi and Banamex employees, a process that accelerated in recent days, we expect that 5 new banks are targeting Mexico.

In her column ‘Here are the names of the next banks’, Jeanette Leyva Reus published details of institutions such as: Banco Plata, Masari Banco, Konfío, Nu and ION Banco, which intend to enter the country this year.

Leyva Reus points out that the new banking institutions are expected to begin operating until the next six-year term.

“Some (processes) are very advanced, so they do not rule out that they may be able to obtain at least the bank authorization document in this six-year term, and it would be with the next administration that operations will start, since they must follow another process to being able to make transactions,” explains Leyva Reus.

The possible start date of operations of the five new banking institutions is due to the fact that they are waiting for the Ministry of Finance and Public Credit (SHCP), the National Banking and Securities Commission (CNBV) as well as the Bank of Mexico (Banxico) approve all the requirements to position your company.

Source: elfinanciero