Mexico
Answer ... Two authorisations are necessary to operate a bank in Mexico:
- authorisation to establish and operate a bank; and
- authorisation to commence operations as a bank.
The first authorisation is granted by the National Banking and Securities Commission (CNBV), based on the favourable opinion of Banxico; while the second is granted by the CNBV exclusively.
The first authorisation is granted on the basis of a documentary review of compliance with the requirements set out in the applicable regulations. The second is granted based on a review of the entity’s infrastructure and operating, financial, technological and corporate governance conditions; this may even involve pre-operational investigatory visits in order for the regulator to ensure that the bank fulfils all necessary conditions to commence operations.
The authorisations allow banks to carry out the operations that are specified in their business plan and statutory bylaws. In addition to banks that hold a full licence and can thus conduct all operations that are reserved for banks, if included in the business plan and bylaws, there are three types of niche banks whose operations are limited, as discussed in question 2.1.
Mexico
Answer ... In order to obtain a licence to establish and operate a bank, the following requirements must be met:
- a documentary review of the draft bylaws; and
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submission of:
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- a list of direct and indirect shareholders;
- a list of directors and managers; and
- the operation plan; and
- proof of payment of a guarantee deposit equivalent to 10% of the capital requirement.
In the case of parties that will have a direct or indirect equity participation in the bank, it is necessary to review documentation to confirm that they have the requisite financial and moral solvency, as well as satisfactory credit and business records.
Likewise, in the case of senior management, proof of their experience and technical capabilities, as well as satisfactory credit history and moral solvency, is required.
The operation plan of the bank must include the following criteria:
- the operations to be carried out;
- security measures to preserve the integrity of information;
- programmes for attracting resources and granting loans for passive and active operations;
- the market segments that will be preferentially served;
- forecasts of geographic coverage;
- a financial viability study;
- the basis for applying profits; and
- organisation, management and internal controls.
Once authorisation has been obtained, the bank must obtain a second authorisation in order to commence operations. In this regard, the following criteria will be reviewed by the CNBV:
- express mention of the operations in the bylaws;
- compliance with the minimum capital requirements;
- appropriate governance and corporate structure; and
- infrastructure and internal controls.
To this end, the CNBV may carry out investigatory visits.
Mexico
Answer ... The procedure for obtaining a banking licence begins with an informal discussion of the business model in meetings with the financial authorities of the financial system (ie, the CNBV, the Ministry of Finance and Public Credit and Banxico). Subsequently, public officers will informally review and comment on all documentation required to obtain authorisation. Their comments will eventually be incorporated into the formal filing or application.
The interested parties will then formally submit the licence application, together with the necessary documentation, to the CNB, which will send a copy of the file to Banxico for it to issue its opinion. A decision on the application should be issued within 180 days. However, this period will be suspended if the authority requests additional information and will resume once the applicant has responded to the information request.
Once Banxico has issued a favourable opinion, the CNBV’s governing board will make its decision and will communicate this to the applicant within the following five days.
Upon receipt of notification, the interested parties have a period of 90 days in which to present the bank’s bylaws to the CNBV for approval. Once the CNBV has approved the bylaws, the interested parties have 180 days to request authorisation for the bank to commence operations. The decision on this request for authorisation will be issued within 180 days. Usually, it takes approximately two years to obtain a licence to operate a new bank.