Wednesday , October 27 2021

The Autonomy of the Bank of Mexico is at risk before taking the initiative



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If implemented in writing, the proposal will adversely affect the profitability of banks, because commissions represent on average around 17 percent of the net income of Mexican banks. Along with the increase in interest rates, commissions supported the high profits of Mexican banks, said Moody & # 39; s, commenting on the Monreal initiative.

The proposal prohibits, among others annual credit card commissions, money transfers to other banks and cash withdrawals using credit cards. It would also eliminate fines for delays in loan repayment to five days, which would probably reduce the incentive for borrowers to make timely payments and increase crime.

The day after the proposal was announced, the president-elect Andrés Manuel López Obrador said that his government would not change the regulatory framework of the financial and economic system for at least three years. If López Obrador fulfills this obligation, it would be beneficial for banks in Mexico, despite the uncertainty about potential changes after this three-year period, the rating agency said.

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