{
  "title": "Mexico: Financial Sector Assessment Program-Technical Note on Selected Issues in Financial Safety Net Arrangements and Financial Crisis Preparedness",
  "publication": "IMF Staff Country Reports, November 10, 2022",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2022/11/09/mexico-financial-sector-assessment-program-technical-note-on-selected-issues-in-financial-525579",
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  "summary": "The Mexican financial authorities strengthened the financial safety net since the last FSAP and need to continue and accelerate enhancements.",
  "sections": [
    {
      "heading": "Overall assessment",
      "content": "- The Mexican financial authorities strengthened the financial safety net since the last FSAP but need to continue and accelerate enhancements.\n- Recovery and resolution plans are in place for all commercial banks.\n- Systemic banks are required to increase their loss absorbency, complementing the critical Basel III reforms that the authorities have advanced.\n- Authorities progressed preparations for using the bridge bank tool and signed cooperation agreements with all major home jurisdictions of the Mexican systemic banks.\n- Authorities clarified the emergency lending facilities including to banks in resolution, and improved the depositor payout process."
    },
    {
      "heading": "Key findings and unresolved weaknesses",
      "content": "- Credibility and feasibility of banks’ financial contingency arrangements need further improvement.\n- There remain impediments to banks’ resolvability and to the use of:\n  - the bridge bank tool, and\n  - purchase and assumption transaction resolution tools.\n- The resolution regime’s remit does not fully cover financial holding companies and needs expansion.\n- The resolution and deposit insurance agency requires reinforcement in:\n  - governance,\n  - autonomy, and\n  - resources."
    },
    {
      "heading": "Policy recommendations and priorities",
      "content": "- Continue and accelerate enhancements to the financial safety net.\n- Further improve the credibility and feasibility of banks’ financial contingency arrangements.\n- Remove impediments to banks’ resolvability and to the operational use of the bridge bank and purchase and assumption transaction resolution tools.\n- Expand the resolution regime’s remit to include financial holding companies.\n- Reinforce the resolution and deposit insurance agency’s governance, autonomy, and resources."
    },
    {
      "heading": "Document snapshot",
      "content": "- Publication date: November 10, 2022\n- Pages: 32\n- Series: IMF Staff Country Reports (Country Report No. 2022/339)\n\nInternational Monetary Fund: Mexico: Financial Sector Assessment Program-Technical Note on Selected Issues in Financial Safety Net Arrangements and Financial Crisis Preparedness\n\n---\n\n Content in this bundle\n\n- Executive Summary\n  - Executive Summary (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Executive Summary (PDF){rel=\"external\" type=\"application/pdf\"}"
    }
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    "Published: November 10, 2022",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9798400224676.002",
    "The Mexican financial authorities strengthened the financial safety net since the last FSAP but need to continue and accelerate enhancements.",
    "Recovery and resolution plans are in place for all commercial banks.",
    "Systemic banks are required to increase their loss absorbency, complementing the critical Basel III reforms that the authorities have advanced.",
    "Authorities progressed preparations for using the bridge bank tool and signed cooperation agreements with all major home jurisdictions of the Mexican systemic banks.",
    "Authorities clarified the emergency lending facilities including to banks in resolution, and improved the depositor payout process.",
    "Credibility and feasibility of banks’ financial contingency arrangements need further improvement.",
    "There remain impediments to banks’ resolvability and to the use of:",
    "The resolution regime’s remit does not fully cover financial holding companies and needs expansion.",
    "The resolution and deposit insurance agency requires reinforcement in:",
    "Continue and accelerate enhancements to the financial safety net.",
    "Further improve the credibility and feasibility of banks’ financial contingency arrangements.",
    "Remove impediments to banks’ resolvability and to the operational use of the bridge bank and purchase and assumption transaction resolution tools.",
    "Expand the resolution regime’s remit to include financial holding companies.",
    "Reinforce the resolution and deposit insurance agency’s governance, autonomy, and resources.",
    "Publication date: November 10, 2022",
    "Pages: 32",
    "Series: IMF Staff Country Reports (Country Report No. 2022/339)",
    "**Executive Summary**"
  ],
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