Mexico: Financial Sector Assessment Program Update: Detailed Assessment of Compliance with the Basel Core Principles for Effective Banking Supervision and Transparency of Banking Supervision
IMF Staff Country Reports, May 15, 2007
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Bibliographic details
- Published: May 15, 2007
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451825800.002
Summary
- Presents a Detailed Assessment of Mexico’s compliance with the Basel Core Principles for Effective Banking Supervision and Transparency of Banking Supervision.
- Fiscal consolidation reduced the gross public debt-to-GDP ratio to below 50 percent, providing the foundations for a monetary policy able to bring inflation down to less than 4 percent, in the context of a floating exchange rate.
- These improvements have contributed to Mexico’s achievement of investment-grade rating, uninterrupted access to capital at low cost, and resilience to shocks, such as the Russian crisis.
Key findings and implications
- Fiscal consolidation outcome:
- Gross public debt-to-GDP ratio: below 50 percent.
- Monetary policy environment:
- Enabled a monetary policy able to bring inflation down to less than 4 percent.
- Operates in the context of a floating exchange rate.
- Market and resilience outcomes:
- Achievement of investment-grade rating.
- Uninterrupted access to capital at low cost.
- Resilience to shocks (example cited: the Russian crisis).
- Primary assessment focus:
- Compliance with the Basel Core Principles for Effective Banking Supervision.
- Transparency of Banking Supervision.
Scope and topical coverage
- Subjects listed: Bank supervision; Banking; Basel Core Principles; Capital adequacy requirements; Credit; External audit; Financial regulation and supervision; Financial Sector Assessment Program; Financial sector policy and analysis; Legal support in revenue administration; Money; Revenue administration.
- Keywords included: bank liquidation framework; bank resolution; Bank supervision; Basel Core Principles; board of directors; bridge bank; CNBV objective; CNBV review; country risk; CR; Credit; examination team; Financial Sector Assessment Program; Global; intervened bank; ISCR; Legal support in revenue administration; onsite team; problem bank; risk manager; única de Banco.
Mexico: Financial Sector Assessment Program Update: Detailed Assessment of Compliance with the Basel Core Principles for Effective Banking Supervision and Transparency of Banking Supervision