DIVERSITY activity PLAN

Diversity Action Plan

Diversity Action Plan

Introduction

Long under rigid government command and ownership, Mexican banks reverted back to the private part in 1991 and 1992. The banking alterations now progressing contain potential benefits for U.S. exporters selling items south of the border.

throughout the 1980s, the reason of the Mexican banks was to finance the country's fiscal shortfall and to make loans to certain parts of the Mexican economy, according to Dan Miller, economic analyst with USDA's farming Stabilization and Conservation Service (ASCS). borrowing was based more on political decisions than on supply and demand. The government made the key operational decisions and chartered most bank management.

System of banks in Mexico

Today, Mexican banks are privatized and controlled by assemblies of shareholders, which generally have a lead investor, who, in many cases, is the chief boss officer of the bank. Under privatization, the majority of the bank portions are held by personal companies or other shareholders.

According to Miller, Mexican banks are under new administration and their objectives have changed. Now, their reason is to make a earnings for shareholders. The Mexican Government still owns Mexico's Export-Import bank, a domestically-oriented development bank, and some other development banks.

"Privatization opened up a new banking part and changed the way Mexican banks present business," said Miller. "Legislation passed in Mexico in 1975 proposed multi-banking, a concept which permits banks to consolidate distinct types of lending operations."

With the route of the Financial assemblies regulation in 1990, universal banking was permitted in Mexico. This means that banks and other types of economic institutions such as supply brokerages, insurance businesses and leasing businesses may be held by one economic holding company that can offer associated services.

Banks in the joined States are not permitted to sell protection or supply or offer associated services. But under Mexico's new regulatory ...