Editing Economy of Mexico (section)

====Banking system====
[[File:Torre_BBVA_Bancomer.jpg|thumb|left|250px|BBVA Bancómer Tower]]
According to the [[International Monetary Fund|IMF]] the Mexican banking system is strong, in which private banks are profitable and well-capitalized.<ref>{{cite web |url=http://www.imf.org/external/pubs/ft/scr/2006/cr06350.pdf |title=Mexico: Financial System Stability Assessment Update |access-date=May 29, 2007 |archive-date=March 3, 2016 |archive-url=https://web.archive.org/web/20160303214016/http://www.imf.org/external/pubs/ft/scr/2006/cr06350.pdf |url-status=live }}</ref> The financial and banking sector is increasingly dominated by foreign companies or mergers of foreign and Mexican companies with the notable exception of [[Banorte]]. The acquisition of [[Banamex]], one of the oldest surviving financial institutions in Mexico, by [[Citigroup]] was the largest US-Mexico corporate merger, at US$12.5&nbsp;billion.<ref>{{cite web|url=http://www.citigroup.com/citigroup/corporate/history/banamex.htm |title=Grupo Financiero Banamex |access-date=February 16, 2007 |archive-url=https://web.archive.org/web/20070203153400/http://www.citigroup.com/citigroup/corporate/history/banamex.htm |archive-date=February 3, 2007 |url-status=live  }}</ref> The largest financial institution in Mexico is [[Bancomer]] associated to the Spanish [[BBVA]].<ref>{{cite web|url=http://www.bancomer.com.mx/nuestrom/index.html |title=Acerca de Bancomer |access-date=February 16, 2007 |language=es |url-status=dead |archive-url=https://web.archive.org/web/20070208020413/http://www.bancomer.com.mx/nuestrom/index.html |archive-date=February 8, 2007  }}</ref>

The process of institution building in the financial sector in Mexico has evolved hand in hand with the efforts of financial liberalization and of inserting the economy more fully into world markets.<ref>{{cite web|url=http://www.g7.utoronto.ca/g20/20031026_cs_mex.pdf|title=Globalization: The Role of Institution Building in the Financial Sector. The Case of Mexico|access-date=February 16, 2007|url-status=dead|archive-url=https://web.archive.org/web/20061222070734/http://www.g7.utoronto.ca/g20/20031026_cs_mex.pdf|archive-date=December 22, 2006}}</ref> Over the recent years, there has been a wave of acquisitions by foreign institutions such as US-based Citigroup, Spain's BBVA and the UK's [[HSBC]]. Their presence, along with a better regulatory framework, has allowed Mexico's banking system to recover from the [[Mexican peso crisis|1994–95 peso crisis]]. Lending to the public and private sector is increasing and so is activity in the areas of insurance, leasing and mortgages.<ref name="eiu">{{cite web |url=http://portal.eiu.com/index.asp?layout=displayIssueArticle&issue_id=180437203&article_id=290437214| title=Country Finance Main Report: April 26, 2006 (Mexico) |access-date=February 16, 2007 |format=Requires subscription}}</ref> However, bank credit accounts for only 22% of GDP, which is significantly low compared to 70% in Chile.<ref>{{cite web|url=http://www.frontenet.com/juarez/ppal.cfm?num=140283 |title=Mantiene sistema financiero baja penetración: Werner |access-date=February 16, 2007 |language=es |url-status=dead |archive-url=https://web.archive.org/web/20090212121642/http://www.frontenet.com/juarez/ppal.cfm?num=140283 |archive-date=February 12, 2009 }}</ref> Credit to the Agricultural sector has fallen 45.5% in six years (2001 to 2007), and now represents about 1% of total bank loans.<ref>{{Cite news  | last1=Zúñiga  | first1=Juan Antonio  | title=El crédito a la agricultura cayó 45.5% en 6 años  | date=February 20, 2007 | url=http://www.jornada.unam.mx/2007/02/20/index.php?section=economia&article=028n1eco  | newspaper=[[La Jornada]]  | language=es  | access-date=February 25, 2007 | archive-date=October 15, 2017 | archive-url=https://web.archive.org/web/20171015122930/http://www.jornada.unam.mx/2007/02/20/index.php?section=economia&article=028n1eco  | url-status=live  }}</ref> Other important institutions include savings and loans, credit unions (known as "cajas populares"),<ref>{{cite news| url=http://www.chron.com/business/article/Mexicans-turn-to-cajas-for-loans-1564206.php| author=Eliza Barclay| title=Mexicans turn to cajas for loans| newspaper=Houston Chronicle| date=December 24, 2005| access-date=February 7, 2013| archive-date=September 3, 2019| archive-url=https://web.archive.org/web/20190903214209/https://www.chron.com/business/article/Mexicans-turn-to-cajas-for-loans-1564206.php| url-status=live}}</ref> government development banks, “non-bank banks”, [[bonded warehouse]]s, bonding companies and foreign-exchange firms.<ref>[http://portal.eiu.com/index.asp?layout=displayIssueArticle&issue_id=180437203&article_id=310437216 Country Finance Main Report: April 26, 2006 (Mexico)] Banks Overview</ref>

A wave of acquisitions has left Mexico's financial sector in foreign hands. Their foreign-run affiliates compete with independent financial firms operating as commercial banks, brokerage and securities houses, insurance companies, retirement-fund administrators, mutual funds, and leasing companies.