MEXICO Law and Practice Contributed by: Pablo Perezalonso Eguía, Isabel Ortiz-Monasterio Borbolla and Alejandro Mosqueda Pérez, Ritch, Mueller y Nicolau, S.C.
2. Authorisation 2.1 Licences and Application Process Bank Authorisation Regime in Mexico Obtaining a banking licence in Mexico is a very complex regulatory processes, governed pri - marily by the Banking Law and applicable pro - visions of the CUB. Below is a summary of the key aspects of the authorisation regime. Authorisation Requirement and Activities Covered To establish and operate a bank in Mexico, an entity must obtain authorisation from the CNBV, with a favourable opinion from Banco de Méxi - co. Mexican banks may engage in all activities permitted under the Banking Law or opt to per - form only specific transactions. Adjustments to these activities require prior CNBV approval. Foreign banks cannot establish branches in Mexico for general banking activities, and repre - sentative offices are restricted from conducting active banking transactions. Application Process and Requirements The application process involves filing an appli - cation in triplicate, along with its exhibits, to the CNBV. The documentation must be submitted in Spanish, translated by a certified translator. The timeline for obtaining approval ranges from six to nine months following submission of a complete
the interest rates that banks use in small to medium loans need to comply. • Reglas para el Establecimiento de Filiales de Instituciones Financieras del Exterior (the “Rules for the Incorporation of Affiliates of Foreign Financial Entities”) set forth the rules that govern the conditions and procedures for foreign financial institutions to establish subsidiaries in Mexico, ensuring compliance with local regulations and promoting healthy competition in the financial market. Authorities Regarding the supervision authorities of banks, the Ministry of Finance bears the primary super - visory responsibility and is supported by an autonomous agency functionally attached to it, the CNBV, that regulates, among others, banks, broker-dealers and investment funds. Banco de México, in addition to managing its normal central bank operations, also regulates deposit, lending and funding transactions of banks, as well as the foreign exchange and derivatives markets in Mexico. Two other decentralised public agencies involved with operations of Mexican banks are the Insti - tuto para la Protección al Ahorro Bancario or IPAB, which is in charge of the banking deposit system and of managing a formal deposit insur - ance system, and the Comisión Nacional para la Protección y Defensa de los Usuarios de Ser- vicios Financiero (the “National Commission for the Defense of Financial Service Users”, or CONDUSEF).
application. Key steps include: 1. Filing and deposit guarantee:
• A deposit equivalent to 10% of the minimum required capital must be made with Banco del Bienestar in favour of the Tesorería de la Fed- eración (the “Mexican Treasury”). This deposit ensures the seriousness of the application and is refundable upon the successful incor -
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