Banking and Credit Services:
Banking and Credit services are the main activity done by banks as financial intermediaries. According to the Law of Credit Institutions (LIC), it is considered as Banking and Credit services the acceptance of deposits from the public in the national market to provide credits to the public.
The intermediary is obliged to cover the principal and in some cases the financial accessories (interests) of the deposits.
To accept resources from the public means to obtain resources from instruments, such as:
- Banking deposits made by individuals and legal entities, and
- Loans that individuals and firms give to banks
The allocation of resources to the public is related mainly to the credits that banks give to individuals, firms and government, which demand resources in the markets and are willing to pay the corresponding interests.
In summary, banks accept money in the form of deposits, giving an interest (passive rate), to later give credits and other financial operations by which charge interests (active rate) and commissions.
Institutions that are allowed to provide services in Banking and Credit
The Banking and credit services can only be provided by:
- Commercial banks
- Development banking institutions
Members of the Mexican Banking System
Under Article 3 of the Law of Credit Institutions (LIC), the Mexican Banking System consists of:
Banco de México (Central Bank)
Development banking institutions
Public trusts set up by the Federal government to foster economic development that have financial activities
Self-regulatory banking agencies
Governance functions of the Mexican government regarding the Mexican Banking System
The State provides leadership in the Mexican banking system, so that its activities are oriented primarily to support and promote the development of the country's productive forces and the national economic growth, based on sovereign economic policy, promoting savings in all sectors and regions of the country and proper channeling to regional coverage that encourages the decentralization of the system itself, in compliance with sound banking practices.
The development banking institutions improve the productive activities that Congress determines as the specialties of each one, in the respective organic laws.
Authorization to operate as a Commercial Bank
To organize and operate as a commercial bank requires Federal Government approval, granted discretionarily through the CNBV, after the agreement of the CNBV’s Board of Governors and favorable opinion of the Central Bank (Banxico). These authorizations are not transferable.
Authorizations to organize and operate as a commercial bank and its amendments must be published at the expense of the institution concerned in the Official Journal of the Federation (DOF) and in two newspapers of wide circulation.
Última modificación: 25/10/2013