Editing Bank of Mexico (section)

=== Private banking ===

The first major private bank <ref name=":2" /> in Mexico was opened under the period of the [[Second Mexican Empire]] in 1864 when the ''Banco de Londres, México y Sud America'' (Bank of London, Mexico and South America) opened in Mexico City.<ref name=":1" />

In the 1870s, the ''Banco de Santa Eulalia'' opened in Chihuahua and the ''Monte de Piedad'', which had functioned as a pawnshop since 1775, expanded its services into banking. Both banks issued their own bank notes and many more banks followed suit in the next decade, including the ''Banco Nacional Mexicano'' (Mexican National Bank) in 1882, opened by the administration of President [[Manuel González Flores|Manuel González]].<ref name=":2" /><ref name=":3">{{Cite book|url=http://www.anterior.banxico.org.mx/sistema-financiero/material-educativo/basico/%7B860B8FCB-0988-D96E-0260-1371980FCC40%7D.pdf|title=A Brief Summary of Banking in Mexico|last=Turrent|first=Eduardo|publisher=Banco de México}}{{Dead link|date=June 2020 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

In 1884, the ''Banco Nacional Mexicano'' soon merged with ''Banco Mercantil Mexicano'' (Mexican Mercantile Bank) to form the ''Banco Nacional de México'' (National Bank of Mexico) which issued notes and was the primary lender to the government. The same year government issued a commercial code that gave it control of the banking sector, including the responsibility of chartering banks and establishing minimum levels of capital. The new code also stipulated that all paper money had to be backed by gold or silver on deposit in the national treasury.<ref name=":2" />

The next 15 years were turbulent for the banking sector of Mexico. Due to poor management, the ''Monte de Piedad'' temporarily closed, reopening without its banking services. The government mismanaged the emission of a new non-silver coin and was forced to hastily recall it. Both of these events caused the public to lose confidence in the banks and paper money.<ref name=":2" />