CDMX. November 10, 2018.- Ricardo Monreale, The Morena bench coordinator Senate of the Republic, Proposed this week a bill to regulate the fees collected by me Banks.
In the report, Fitch Ratings considered that if this initiative was approved, it would have a "negative" effect in the medium and long term credit institutions that have branches in Mexico.
The Fitch rating predicts negative implications for the reduction in fees https://t.co/A96SvtvSoX pic.twitter.com/ZCKXz49muP
– Joaquin Lopez-Dorija (Lopezdorga) November 10, 2018
Monryl's proposal assumes the cancellation of certain fees levied by the banks in the Republic of Mexico; However, Fitch Ratings believes that Mexico's profitability for international banking depends on the freedom of banks to regulate their fees.
"The profitability of Mexican banks could be reduced if the initiative was approved, and the fee revenues are a significant source of profits for Mexican banks, which accounted for 18% of the Bank's total operating income over the past five years and net profit still represents the vast majority of total revenues " Fitch Ratings.
The rating agency believes that this freedom in the implementation of fees by banks is "healthy" because most of their income depends on them, with banks' commissions generating profits allowing them to remain even in adverse economic conditions with low interest rates.
"This could have negative effects on medium and long term efforts to increase brokerage and financial inclusion in Mexico by preventing participants from current banking and new entrants.In addition, there may be a negative impact on the offer and terms of financial products", Emphasizes rating agency.
With information from Político MX, López Dóriga and Digital La Jornada.
Photo taken from La Silla Rota.
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Morena presents an initiative to reduce bank fees