From MarketWatch By Robert Powell December 14, 2013 Larry Kotlikoff, a professor at Boston University...
Law on Credit Institutions of 1990
(amended through 2010)
The Law on Credit Institutions (Ley de Instituciones de Crédito) is the main banking law in Mexico. The law covers all credit and financial institutions, though microfinance and popular savings institutions have overlapping laws more narrowly tailored to them. The law specifically regulates banking and credit services, organization and incorporation of banks and other credit institutions, activities and operations (including financial management), and protection of public interests. In addition, the law includes provisions regarding anti-money laundering; other anti-money laundering provisions can be found in the General Law on Auxiliary Credit Organizations and Activities, the Law on Securities Markets, the Popular Savings and Credit Law, and the Law Regulating the Activities of Cooperative Savings and Loan Societies, among others.
The law is organized as follows:
- Title One Preliminary Provisions:
- Includes provisions on categories of activities and institutions within the Mexican banking system and an overview of the National Banking and Securities Commission (CNBV);
- Title Two Credit Institutions:
- Includes provisions on commercial banks (organization and operations) and development banking institutions (operations, administration and governance);
- Title Three Operations:
- Includes rules on liabilities, assets and services, as well as an amendment which reverses a previous prohibition and allows financial institutions to operate through agents, including other financial institutions (Art. 46 Bis 1);
- Title Four General Provisions and Accounting;
- Title Five Prohibitions, Administrative Sanctions and Criminal Offenses:
- Includes provision that members-only groups below a minimum asset level of 350,000 UDIs and Popular Savings and Credit Societies (SCAPs) are excluded from a prohibition on taking deposits (Art. 103);
- Title Six Protection of the Public Interest:
- Includes provisions on the protection of banking savings; and
- Title Seven National Banking and Securities Commission:
- Includes provisions on organization, operation, inspection and oversight.
General Provisions Applicable to Credit Institutions, issued by the National Banking and Securities Commission, can be found under “Related Laws/Regulations.”