Mexico - Financial Sector Assessment Program Update : Technical Note on Strategic Issues in Development Bank Reform
State ownership in financial intermediation in Mexico has continued to be significant in qualitative as well as quantitative terms, with about 20-25 percent per cent of the total credit of the banking system provided by development banks (DBs) and...
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Washington, DC : World Bank
2022
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| Online Access: | http://documents.worldbank.org/curated/en/146761468057262504/Mexico-Technical-note-on-strategic-issues-in-development-bank-reform http://hdl.handle.net/10986/37378 |
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okr-10986-373782022-05-05T05:10:42Z Mexico - Financial Sector Assessment Program Update : Technical Note on Strategic Issues in Development Bank Reform World Bank International Monetary Fund STATE OWNERSHIP FINANCIAL INTERMEDIATION THEORETICAL FRAMEWORK ORGANIC LAWS CORPORATE GOVERNANCE PRINCIPLE INCENTIVES SUBSIDY UNCLEAR MANDATES LEGAL REFORM MONITORING State ownership in financial intermediation in Mexico has continued to be significant in qualitative as well as quantitative terms, with about 20-25 percent per cent of the total credit of the banking system provided by development banks (DBs) and funds during the last five years. The importance of government ownership in financial intermediation is not only quantitative, but qualitative, with influence on key sectors in the Mexican economic development. The 2001 joint World Bank- International Monetary Fund (IMF) Financial Sector Assessment Program (FSAP) that took place in 2001 identified a number of problems related to the operation of DBs in Mexico. Some DBs had unclear mandates or did not live up to their mandates with their activities overlapping among themselves or with the activities of commercial banks. Some of them were performing quasi-fiscal activities outside the scope of the budget process, and all of them were loss making even after several rounds of recapitalization. Their operation was often inefficient with high costs, too many employees, and weak internal controls. Fiscal subsidies involved in their operations were not well targeted and were channeled in a non-transparent manner. After the 2001 FSAP assessment the authorities started a reform effort addressing some of the problems mentioned above through legal reforms and tighter monitoring. 2022-05-04T15:58:59Z 2022-05-04T15:58:59Z 2006-11 Report http://documents.worldbank.org/curated/en/146761468057262504/Mexico-Technical-note-on-strategic-issues-in-development-bank-reform http://hdl.handle.net/10986/37378 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC : World Bank Economic & Sector Work Economic & Sector Work :: Financial Sector Assessment Program (FSAP) Latin America & Caribbean Mexico |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
STATE OWNERSHIP FINANCIAL INTERMEDIATION THEORETICAL FRAMEWORK ORGANIC LAWS CORPORATE GOVERNANCE PRINCIPLE INCENTIVES SUBSIDY UNCLEAR MANDATES LEGAL REFORM MONITORING |
| spellingShingle |
STATE OWNERSHIP FINANCIAL INTERMEDIATION THEORETICAL FRAMEWORK ORGANIC LAWS CORPORATE GOVERNANCE PRINCIPLE INCENTIVES SUBSIDY UNCLEAR MANDATES LEGAL REFORM MONITORING World Bank International Monetary Fund Mexico - Financial Sector Assessment Program Update : Technical Note on Strategic Issues in Development Bank Reform |
| geographic_facet |
Latin America & Caribbean Mexico |
| description |
State ownership in financial
intermediation in Mexico has continued to be significant in
qualitative as well as quantitative terms, with about 20-25
percent per cent of the total credit of the banking system
provided by development banks (DBs) and funds during the
last five years. The importance of government ownership in
financial intermediation is not only quantitative, but
qualitative, with influence on key sectors in the Mexican
economic development. The 2001 joint World Bank-
International Monetary Fund (IMF) Financial Sector
Assessment Program (FSAP) that took place in 2001 identified
a number of problems related to the operation of DBs in
Mexico. Some DBs had unclear mandates or did not live up to
their mandates with their activities overlapping among
themselves or with the activities of commercial banks. Some
of them were performing quasi-fiscal activities outside the
scope of the budget process, and all of them were loss
making even after several rounds of recapitalization. Their
operation was often inefficient with high costs, too many
employees, and weak internal controls. Fiscal subsidies
involved in their operations were not well targeted and were
channeled in a non-transparent manner. After the 2001 FSAP
assessment the authorities started a reform effort
addressing some of the problems mentioned above through
legal reforms and tighter monitoring. |
| format |
Report |
| author |
World Bank International Monetary Fund |
| author_facet |
World Bank International Monetary Fund |
| author_sort |
World Bank |
| title |
Mexico - Financial Sector Assessment Program Update : Technical Note on Strategic Issues in Development Bank Reform |
| title_short |
Mexico - Financial Sector Assessment Program Update : Technical Note on Strategic Issues in Development Bank Reform |
| title_full |
Mexico - Financial Sector Assessment Program Update : Technical Note on Strategic Issues in Development Bank Reform |
| title_fullStr |
Mexico - Financial Sector Assessment Program Update : Technical Note on Strategic Issues in Development Bank Reform |
| title_full_unstemmed |
Mexico - Financial Sector Assessment Program Update : Technical Note on Strategic Issues in Development Bank Reform |
| title_sort |
mexico - financial sector assessment program update : technical note on strategic issues in development bank reform |
| publisher |
Washington, DC : World Bank |
| publishDate |
2022 |
| url |
http://documents.worldbank.org/curated/en/146761468057262504/Mexico-Technical-note-on-strategic-issues-in-development-bank-reform http://hdl.handle.net/10986/37378 |
| _version_ |
1764484488736276480 |