General Provisions Applicable to Credit Institutions of 2005

Mexico

(amended through 2010)

General Provisions Applicable to Credit Institutions (Disposiciones de Carácter General Aplicables a las Instituciones de Crédito), issued by the National Banking and Securities Commission (CNBV), is a comprehensive, consolidated set of regulations governing Mexico’s financial institutions. The regulations build a more detailed regulatory framework on top of the foundational provisions of the Law on Credit Institutions (LIC). Amendments in 2009 allowed for the creation of “niche banks,” or banks with lower initial capital requirements and more limited activities compared to traditional commercial banks (Title One, Chapter II). The regulation also includes provisions regarding the use of agents (Title Five, Chapter XI).

The regulation is organized as follows:

  • Title One General Provisions:
    • Chapter I Definitions;
    • Chapter II Minimum Capital Requirements (for commercial banks only);
      • Includes provisions creating niche banks (Art. 2);
  • Title One Bis: Capital Requirements for Credit Institutions:
    • Chapter I General Provisions;
    • Chapter II Integration of Capital;
    • Chapter III Capitalization According to Credit Risk;
      • Includes provisions on securitization of assets, net capital requirements, and division of capital requirements according to category of debtor;
    • Chapter IV Capitalization According to Market Risks;
    • Chapter V Capitalization According to Operational Risks;
    • Chapter VI Additional Capitalization Requirements;
    • Chapter VII Other Provisions;
  • Title Two Prudential Regulations:
    • Chapter I Preventive Measures and the Provision of Credit;
    • Chapter II Integration of Credit Records;
    • Chapter III Diversification of Risk;
    • Chapter IV Risk Management;
    • Chapter V Rating Loan Portfolios;
      • Includes methodologies for evaluating portfolios for consumer loans, mortgages, and commercial loans;
    • Chapter VI Internal Controls;
    • Chapter VII Repealed;
  • Title Three Financial Disclosure and Valuation:
    • Chapter I Accounting criteria and valuation of securities and other financial instruments;
    • Chapter II Disclosure of financial information, statements, and other records;
    • Chapter III External auditors and auditing reports;
  • Title Four Regulatory Reports:
    • Chapter I General Reporting;
    • Chapter II Information that must be provided by institutions with natural disaster assistance accounts;
    • Chapter III Information that must be provided by foreign financial institutions;
    • Chapter IV Other information;
  • Title Five Other Provisions:
    • Chapter I Early Warning Systems;
    • Chapter II Compensation for operations under Art. 73, paragraph two of the LIC;
    • Chapter III Provisions for assets received by court award or by gift;
    • Chapter IV Provision of appraisal service;
    • Chapter V Systems for receipt of orders and allocation of securities transactions;
    • Chapter VI Methodology for calculating contributions to the Institute for the Protection of Bank Savings (IPAB) and the trust provided under Art. 55 Bis of the LIC;
    • Chapter VII Pensions and retirement systems under Art. 64 Bis of the LIC;
    • Chapter VIII Microfilm and digitalization of documents related to assets, liabilities, and services;
    • Chapter IX Operating Security Measures;
    • Chapter X Electronic Banking;
    • Chapter XI Contracting of Agents;
    • Chapter XII Explanation of “relation and information” under Arts. 10, 17 and 24 of the LIC;
      • Includes registration requirements for niche banks (Art. 337 Bis);
    • Chapter XIII Basic security measures under Art. 96 of the LIC;
    • Chapter XIV Additional Regulation; and
  • Annexes.

The Law on Credit Institutions of 1990 can be found under “Related Laws/Regulations.”