Reducing bank charges in Mexico is negative: Fitch Ratings



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Acustik News

CDMX. 10 November 2018- Ricardo Monreal, Morena bench coordinator Senate of the Republic, this week proposed a bill regulating premiums banks.

In the report, Fitch Ratings considered that if this initiative were to be adopted, it would have a "negative" impact on medium and long-term credit institutions with branches in Mexico.

Monreal's proposal assumes the withdrawal of some of the fees charged by the banks in the Republic of Mexico. However, Fitch Ratings estimates that Mexico's profitability for international banking depends on the bank's freedom to regulate its remuneration.

"The income from the Mexican banks is a major source of profit for Mexican banks, which represented an average of 18 percent of the bank's most recent 5-year operating income and net interest income still accounted for the bulk of total net sales. mentioned Fitch Ratings.

The credit rating agency believes that this freedom to make payments to banks is "healthy", as most of their income depends on the fact that the reward banks generate profits and allow them to stay in low-interest rates even in adverse conditions.

"It may have negative medium and long-term impacts on efforts to increase brokering and economic inclusion in Mexico by blocking existing participants in the banking and newcomers and may also have a negative impact on the provision of financial products and the terms", emphasizes the classification society.

Político MX, López Doriga Digital and La Jornada.

Photo taken from La Silla Rota.

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