Mexico fact of the day

by on September 30, 2008 at 7:55 am in Data Source | Permalink

Foreign banks account for 80 percent of the financial system in Mexico, 51 percent in Peru, 29 percent in Chile and 22 percent in Brazil.

Here is more on the general issue of international contagion.

1 Acad Ronin September 30, 2008 at 8:18 am

However, except for Banamex in Mexico, which Citibank owns, the major owners are Banco Santander, which was in the running to acquire Wachovia and which has just acquired B&B in the UK, having earlier this year acquired Alliance & Leicester, BBVA, Scotia Bank, and HSBC. The only bank that appears to have had any exposure to the US problems is Santander via its 25% stake in Sovereign Bank. BBVA owns Compass Bank in the US South. So far, the Bank of Spain seems to have done a very good job of keeping its banks running on the straight and narrow. In Brazil, the largest foreign bank is Banco Real-Banco Santander Banespa. Banco Santander got Banco Real, which is considered a sound and well-run bank, as its share of the carve-up of ABN AMRO. The head of Banco Real is now in charge of combining Real with Santander-Banespa. In Mexico, BBVA owns BBVA Bancomer the number two bank after Banamex, and Santander owns Santander Serfin, the number 3 bank. Scotia Bank owns the number 5 bank, while HSBC owns the number 6 bank (could be the other way round; I don’t have my notes with me).

Net-net, this is a case where the foreign ownership of large chunks of the banking system is probably not going to be a cause of contagion.

2 Per Kurowski September 30, 2008 at 10:23 am

I’m going to third-pillar what?

By now the desperate bank regulators are throwing at us the third pillar of their Basel regulations which implies the need that we ourselves privately monitor our banks. Great, in my country, a couple of decades ago, I did just that and had a fairly good grip on whom of my banker neighbors were good bankers and whom to look out for.

But sincerely what am I supposed to do know when about 50 per cent of the retail deposits in my country are in hand of international banks (Spain) and that might be losing their shirt making investments in subprime mortgages in California?

3 china jeans October 7, 2008 at 5:36 am

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4 Anonymous November 7, 2008 at 9:39 pm

that is very wired i never knew that before, haha, well good job

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