Mexican financial system
What is the financial system and how is it composed in Mexico?
ordered set of both public and private institutions through which a country's money flows
What are the functions of the financial system?
takes care of capturing money saved and channeling it to those who need it.
How is the Mexican financial system composed?
In Mexico it consists of two levels
These are mainly the SHCP and Banxico. Although there are also others, such as the Institute for the Protection of Bank Savings (IPAB) or the National Commission for the Protection and Defense of the User of Financial Services (Condusef).
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What is a financial instrument?
legal document that represents an investment or an economic right.
Direct investment
It is one in which the investor directly acquires a right over a security or property.
Foreign direct investment
Moral or physical person who invests
directly in a foreign country.
To be considered as Foreign Direct Investment, it must be an investment of 10%
Insurance and finance institutions
The National Insurance and Surety Commission is a Decentralized Body of the Ministry of Finance and Public Credit, in charge of supervising that the operation of the insurance and surety sectors adheres to the regulatory framework, preserving the solvency and financial stability of the Insurance and Public Credit institutions. Surety
The Ministry of Finance and Public Credit (SHCP)
is the most important authority and the one that heads all the authorities within the system
Bank of Mexico (BM)
one of the most important authorities
The National Banking and Securities Commission (CNBV)
supervises and regulates financial institutions
National Commission for the Protection and Defense of Users of Financial Services (CONDUSEF)
decentralized public body, which is responsible for providing advice, as well as protecting and defending the rights and interests of people who use or contract a financial product or service
The Institute for Bank Savings (IPAB)
protects savers' deposits and contributes to preserving the stability of the financial system
The National Insurance and Surety Commission (CNSF)
supervises that insurers and bonding companies adhere to the established regulatory framework
The National Commission of the Retirement Savings System (CONSAR)
in charge of protecting and overseeing that the management of workers' savings accounts destined for their retirement