World Bank2014-01-172014-01-172013-04-09https://hdl.handle.net/10986/16584This note outlines a short, to medium-term reform agenda to foster sound financial sector development. Mexico needs to broaden and deepen its financial system without compromising the financial stability gains of the last decade. Much more private investment is needed to transform the economy to boost productivity, and despite improvements in recent years, many households and firms still lack adequate access to financial services. Using the financial payments system to promote financial inclusion is a sound way to broaden access. However, experience in several countries has shown that accelerated (or forced) expansion of credit can harm rather than benefit customers. If financial institutions do not follow sound practices, they can fail, harming borrowers and depositors alike and creating social unrest. Institutional failures may also lead to costly bailouts, with substantial fiscal cost. An oversight system (both micro, and macro, prudential) that encourages prudent-risk taking and facilitates prompt resolution of failed institutions ensures that strategies for financial deepening do not compromise financial stability.en-USCC BY 3.0 IGOACCESS TO BANKACCESS TO CREDITACCOUNTS RECEIVABLEASYMMETRIC INFORMATIONASYMMETRIES OF INFORMATIONATMSBAILOUTSBALANCE SHEETBALANCE SHEETSBANK BALANCE SHEETSBANK LENDINGBANK LOANBANK LOANSBANKING SECTORSBANKING SERVICESBANKSBARRIERS TO ENTRYBONDBONDSBORROWERBROKERAGEBROKERAGE ACTIVITIESCAPITAL MARKETCAPITAL MARKET DEVELOPMENTCAPITAL MARKETSCASH PAYMENTCIVIL LIABILITYCLAIMCOLLATERALCOLLATERAL REGISTRATIONCOLLATERAL REQUIREMENTSCOMMERCIAL BANKCOMMERCIAL BANK CREDITCOMMERCIAL BANK LENDINGCOMMERCIAL BANK LOANSCOMMERCIAL BANKSCONFLICT OF INTERESTCONFLICTS OF INTERESTCONSUMERCONSUMER COMPLAINTSCONSUMER CREDITCONSUMER FINANCIAL EDUCATIONCONSUMER PROTECTIONCONSUMER PROTECTION LAWSCONSUMERSCONTRIBUTIONCONTRIBUTION RATECONTRIBUTION RATESCORPORATE GOVERNANCECOURT JUDGMENTSCOURT RESOLUTIONSCREDIT AGENCYCREDIT BUREAUCREDIT BUREAUSCREDIT CARDSCREDIT COOPERATIVECREDIT COOPERATIVESCREDIT COSTSCREDIT EXPANSIONCREDIT GUARANTEECREDIT GUARANTEESCREDIT HISTORIESCREDIT INFORMATIONCREDIT INFORMATION SYSTEMCREDIT INFORMATION SYSTEMSCREDIT INSTITUTIONSCREDIT LINECREDIT MARKETSCREDIT PROGRAMSCREDIT PROTECTIONCREDIT REPORTINGCREDIT REPORTING SYSTEMCREDIT REPORTING SYSTEMSCREDIT REPORTSCREDITORCREDITOR COMMITTEESCREDITOR RIGHTSCREDITORSCREDITSDEBIT CARDSDEBTDEBTORDEBTORSDEPOSITDEPOSITORSDEPOSITSDERIVATIVESDEVELOPMENT BANKDEVELOPMENT BANKSDIVERSIFICATIONDUE DILIGENCEECONOMIC LOSSESENFORCEMENT CAPACITYEQUITY MARKETEQUITY MARKETSFINANCIAL ASSETSFINANCIAL CONGLOMERATESFINANCIAL CRISISFINANCIAL DEVELOPMENTFINANCIAL EDUCATIONFINANCIAL EDUCATION EFFORTSFINANCIAL GROUPSFINANCIAL INFRASTRUCTUREFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIARIESFINANCIAL LITERACYFINANCIAL PRODUCTSFINANCIAL REGULATORFINANCIAL SAVINGSFINANCIAL SECTORFINANCIAL SECTOR DEVELOPMENTFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL SYSTEMFINANCIAL TRANSACTIONSFORECLOSURESFOREIGN INVESTORSFOREIGN MARKETSFRAUDFUND MANAGERSGOVERNMENT BONDSGROUPS OF CREDITORSINCOMEINCOME SECURITIESINITIAL PUBLIC OFFERINGINITIAL PUBLIC OFFERINGSINSOLVENCYINSOLVENCY CASESINSOLVENCY LAWINSOLVENCY PROCEDURESINSOLVENCY PROCEEDINGSINSOLVENCY PROCESSINSTITUTIONAL INVESTORSINSURANCEINTEREST INCOMEINTEREST RATEINTERNATIONAL STANDARDSINVESTINGINVESTMENT FUNDSINVESTMENT PERFORMANCEINVESTMENT REGULATIONSJUDICIAL PROCEDURESLARGE BANKSLEGAL FRAMEWORKLEGAL FRAMEWORK FOR INSOLVENCYLEGAL IMPEDIMENTLENDERSLEVERAGELIABILITYLIQUIDATIONLIQUIDATION PROCEDURESLOAN ACTIVITIESLOAN AMOUNTLOAN PORTFOLIOSLONG-TERM INVESTMENTMANDATEMANDATESMARKET CAPITALIZATIONMARKET FOR GOVERNMENT DEBTMARKET INTEGRATIONMATURITYMATURITY TRANSFORMATIONMERGERSMICROCREDITMOBILE PHONEMORTGAGEMOVABLE ASSETSMUTUAL FUNDSNEW INSOLVENCYNEW INSOLVENCY LAWNOTARYPARTIAL CREDITPAYMENT SERVICESPAYMENT SYSTEMSPAYMENTS SYSTEMPENSIONPENSION FUNDSPENSION SYSTEMPORTFOLIOPRIVATE CREDITPRIVATE EQUITYPRIVATE INVESTMENTPRIVATE SECTOR CREDITPRODUCTIVE INVESTMENTSPRODUCTIVITYPROFESSIONAL INVESTORSPROPERTY REGISTRIESREAL ESTATEREAL ESTATE ASSETSREAL ESTATE REGISTRIESREGISTRATION SYSTEMREGISTRY SYSTEMSREGULATORY BARRIERSREGULATORY FRAMEWORKREORGANIZATIONREPLACEMENT RATESRETAIL BANKSRETAIL INVESTORSRETURNSAVINGSSAVINGS ACCOUNTSSECURITIESSECURITIES MARKETSSECURITY INTERESTSSMALLER FIRMSSTOCK EXCHANGETAXTAX CREDITSTRADE CREDITTRANSACTIONTRANSACTION COSTSTRANSPARENCYUNSECURED CREDITORSUNSECURED CREDITSUSE OF DERIVATIVESWORKER CLAIMSWorld Bank10.1596/16584