Thursday, April 25, 2013

Exclusive: Mexico bank reform eases legal hurdles to boost credit

Mexican President Enrique Pena Nieto speaks at the opening ceremony of the annual Boao Forum in Boao, in southern China's Hainan province
Mexican President Enrique Pena Nieto speaks at the opening ceremony of the annual Boao Forum in Boao, in southern China's Hainan province (POOL New Reuters, / April 7, 2013)
 
 


MEXICO CITY (Reuters) - Mexico's government aims to boost lending by making it easier for banks to collect on guarantees for bad loans and by giving new powers to regulators to punish firms that do not lend enough, according to a draft of a new banking reform.

The proposal, a copy of which was seen by Reuters, is due to be presented next week, and is part of a raft of measures aimed at ramping up growth in Latin America's second biggest economy.

Thrashed out within a pact made between President Enrique Pena Nieto and the leaders of the main opposition parties, the banking reform targets Mexico's conservative banks, which boast high capital levels but lend much less than their foreign peers.
 
 

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