International Monetary FundWorld Bank2014-01-302014-01-302013-03https://hdl.handle.net/10986/16744This detailed assessment of the current state of implementation of the Basel core principles in Mexico has been completed as part of a financial sector assessment program update undertaken jointly by the International monetary fund and the World Bank. The assessment was conducted in September 2011 to update the 2006 assessment. It reflects the banking supervision practices of the country as of end-July 2011. Moreover, the bar to measure the effectiveness of a supervisory framework was raised following the recent financial crisis. The assessment is based on several sources: 1) a self-assessment in August 2011 by the country authorities, including written answers to an exhaustive questionnaire; 2) detailed interviews with staff from the relevant national agencies, including the CNBV (Comision Nacional Bancaria y de Valores), the Central Bank of Mexico (BoM), the SHCP (Secretaria de Hacienda y Credito Publico), and the Financial Intelligence Unit (UIF); 3) relevant laws, directives, circulars and guidelines, which constitute the regulatory framework; 4) relevant official pronouncements and other documentation on the supervisory framework; 5) primary evidence on the nature and extent of the supervisory practices; 6) sundry information on the structure and development of the country's financial sector, and more specifically, the country's banking sector; and 7) meetings with selected banks, auditing firms, and rating agencies. The assessment was performed in accordance with the guidelines set out in the core principles methodology, and assessed compliance with the 'essential' criteria only. The assessment of compliance with each principle is made on a qualitative basis. A four-part assessment system is used: compliant; largely compliant; materially noncompliant; and noncompliant. The assessors enjoyed excellent cooperation with their counterparts, and received all the information required.en-USCC BY 3.0 IGOACCESS TO BANKSACCOUNTABILITYACCOUNTINGACCOUNTING STANDARDAFFILIATESAMOUNT OF CAPITALASSET MANAGERSASSET RATIOAUDITINGAUTONOMYBALANCE SHEETSBANK ACCOUNTBANK ACCOUNTSBANK CREDITBANK LIQUIDATIONBANK MANAGEMENTBANK SPREADSBANKING INDUSTRYBANKING INSTITUTIONBANKING INSTITUTIONSBANKING LAWBANKING LAWSBANKING SECTORBANKING SUPERVISIONBANKING SYSTEMBANKING SYSTEMSBANKRUPTCYBANKRUPTCY LAWBANKSBONDSBORROWING REQUIREMENTSBROKERBROKERAGEBROKERAGE HOUSECADASTRESCAPITAL ADEQUACYCAPITAL BASECAPITAL FLOWSCAPITAL MARKETSCAPITAL REQUIREMENTCAPITAL REQUIREMENTSCAPITALIZATIONCENTRAL BANKCIVIL CODECIVIL SERVICECOLLATERALCOMMERCIAL BANKINGCOMMERCIAL BANKSCOMMERCIAL CODECONFLICTS OF INTERESTCONNECTED LENDINGCONSOLIDATED SUPERVISIONCORPORATE GOVERNANCECREDIBILITYCREDIT AGENCIESCREDIT BUREAUSCREDIT CARDCREDIT CARDSCREDIT GROWTHCREDIT HISTORYCREDIT INSTITUTIONSCREDIT MARKETSCREDIT RECORDCREDIT RISKCREDIT RISKSCREDIT UNIONSCREDITORSCREDITWORTHINESSDEBTORDEBTSDEMAND FOR CREDITDEPOSITDEPOSIT INSURANCEDEPOSITSDERIVATIVEDERIVATIVESDEVELOPMENT BANKSDOMESTIC DEBTEMERGING MARKETEMERGING MARKET ECONOMIESEMERGING MARKETSENFORCEABILITYENFORCEMENT POWERSEQUIPMENTEXCHANGE COMMISSIONEXCHANGE RATEEXTERNAL AUDITORSFACTORINGFEDERAL RESERVEFIDUCIARY RESPONSIBILITIESFINANCIAL AUTHORITIESFINANCIAL CONGLOMERATESFINANCIAL CRISISFINANCIAL DEVELOPMENTFINANCIAL DISTRESSFINANCIAL INFORMATIONFINANCIAL INSTITUTIONSFINANCIAL SECTOR ASSESSMENTFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL STATEMENTSFINANCIAL STRENGTHFINANCIAL SYSTEMFOREIGN BANKFOREIGN BANKSFOREIGN EXCHANGEFOREIGN FINANCIAL INSTITUTIONSFUND MANAGEMENTGOOD FAITHGOVERNMENT SECURITIESHOLDINGHOLDING COMPANIESHOUSINGHUMAN RESOURCESINCOME STATEMENTSINFLATIONINFORMATION SYSTEMSINSURANCE COMPANIESINSURANCE COMPANYINTEREST RATEINTEREST RATE RISKINTEREST RATE RISKSINTEREST RATESINTERNAL CONTROLSINTERNATIONAL ACCOUNTING STANDARDSINTERNATIONAL RESERVESINTERNATIONAL STANDARDSINVESTMENT BANKSJUDICIAL PROCESSJUDICIAL SYSTEMLACK OF COMPETITIONLAWSLEGAL FRAMEWORKLEGAL PROTECTIONLEGAL REFORMSLEGAL SYSTEMLEGISLATIONLENDING LIMITLENDING LIMITSLIABILITYLINES OF CREDITLIQUIDITYLIQUIDITY PROBLEMSLIQUIDITY RISKLOANLOAN PORTFOLIOSLOAN PROVISIONINGLOAN QUALITYMACROECONOMIC POLICIESMACROECONOMIC POLICYMANDATESMARKET DISTORTIONSMARKET PARTICIPANTSMARKET RISKSMARKET STRUCTUREMATURITYMINIMUM CAPITAL REQUIREMENTMONETARY FUNDMONETARY POLICYMORTGAGEMOVABLE COLLATERALMUTUAL FUNDMUTUAL FUND MANAGERSMUTUAL FUNDSNATIONAL SECURITYOFFSITE SUPERVISIONOPERATIONAL INDEPENDENCEOPERATIONAL RISKOWNERSHIP STRUCTUREOWNERSHIP STRUCTURESPAYMENT SYSTEMPENSIONPENSION FUNDPENSION FUNDSPENSION SYSTEMPENSIONSPOLICY RESPONSEPRIVATE BANKSPROFITABILITYPROPERTY RIGHTSPROVISION OF CREDITPRUDENTIAL REGULATIONPRUDENTIAL REGULATIONSPRUDENTIAL STANDARDSPRUDENTIAL SUPERVISIONPUBLIC DEBTPUBLIC REGISTRYRATING AGENCIESREGULATORY AUTHORITIESREGULATORY FRAMEWORKREGULATORY PRACTICESREORGANIZATIONRETIREMENTRETURNRETURN ON ASSETSRETURN ON EQUITYRETURNSRISK AVERSIONRISK CAPITALRISK FACTORSRISK MANAGEMENTRISK MANAGEMENT SYSTEMSRISK PROFILERISK PROFILESSAVINGSSHAREHOLDERSHAREHOLDERSSMALL BANKSSMALL DEBTORSSTOCK EXCHANGESUBSIDIARIESSUBSIDIARYSUPERVISION OF BANKSSUPERVISORY AGENCIESSUPERVISORY AGENCYSUPERVISORY AUTHORITYSUPERVISORY FRAMEWORKSWAPTIER 1 CAPITALTRANSFER RISKSTRANSPARENCYTRUSTEESTURNOVERUNIVERSAL BANKINGWAREHOUSESWITHDRAWALWorld Bank10.1596/16744