By Amy Guthrie
MEXICO CITY--Mexico's antitrust authority recommended Tuesday
that Congress approve the government's proposed financial reform in
an "expedited manner," as it sees the proposal benefiting
consumers.
The measure, drafted by a multiparty effort known as the Pact
for Mexico and presented this month by President Enrique Pena
Nieto, offers greater protection for consumers of financial service
products while promoting competition in the sector and allowing for
an expanded offering of services and products, the Federal
Competition Commission said in a statement.
The proposal includes many of the competition body's past
recommendations for the sector, it said, adding that its enactment
could translate into improvements for Mexicans and the broader
economy.
The proposal was designed to encourage the country's banks to
lend at cheaper rates and to a wider swath of Mexicans.
Private-sector financing as a percentage of gross domestic
product in Mexico is around 26%, according to World Bank and
Mexican figures, well below international peers and the 50% average
for Latin America. Bank credit to the private sector as a
proportion of assets is also low at 43%.
The country's five largest banks are behind 74% of credit. The
two largest banks are units of Banco Bilbao Vizcaya Argentaria SA
(BBVA, BBVA.MC) of Spain and Citigroup Inc. (C) of the U.S., which
together control 39% of Mexican bank deposits. Mexican bank Grupo
Financiero Banorte SAB (GBOOY, GFNORTE.MX), Grupo Financiero
Santander Mexico SAB (BSMX, SANMEX.MX) and HSBC Holdings PLC's
(HBC) Mexican unit round out the top five.
Write to Amy Guthrie at amy.guthrie@dowjones.com