Mexico : Financial Sector Assessment Program-Technical Note on Selected Issues in Financial Safety Net Arrangements and Financial Crisis Preparedness.

Format:

Book

Government document

Author/Creator:

International Monetary Fund. Monetary and Capital Markets Department.

Series:

IMF Staff Country Reports; Country Report ; No. 2022/339

IMF Staff Country Reports

Language:

English

Subjects (All):

Financial institutions--Mexico.

Financial institutions.

Financial crises.

Physical Description:

1 online resource

Other Title:

Mexico

Place of Publication:

Washington, D.C. : International Monetary Fund, 2022.

Summary:

The Mexican financial authorities strengthened the financial safety net since the last FSAP and need to continue and accelerate enhancements. Recovery and resolution plans are in place for all commercial banks, systemic banks are required to increase their loss absorbency complementing the critical Basel III reforms that the authorities have advanced, and the authorities progressed preparations for using the bridge bank tool, signed cooperation agreements with all major home jurisdictions of the Mexican systemic banks, clarified the emergency lending facilities including to banks in resolution, and improved the depositor payout process. Yet, accelerated enhancements are necessary, including by further improving the credibility and feasibility of banks’ financial contingency arrangements, removing impediments to banks’ resolvability and the use of the bridge bank and purchase and assumption transaction resolution tools, expanding the resolution regime’s remit to financial holding companies, and reinforcing the resolution and deposit insurance agency’s governance, autonomy, and resources.

Notes:

Description based on publisher supplied metadata and other sources.

ISBN:

9798400225178