## Mexico: Financial Sector Assessment Program-Technical Note on Selected Issues in Financial Safety Net Arrangements and Financial Crisis Preparedness

_IMF Staff Country Reports, November 10, 2022_

## Source details

**Canonical URL:** [Mexico: Financial Sector Assessment Program-Technical Note on Selected Issues in Financial Safety Net Arrangements and Financial Crisis Preparedness](https://www.imf.org/en/publications/cr/issues/2022/11/09/mexico-financial-sector-assessment-program-technical-note-on-selected-issues-in-financial-525579)

## Other formats

- [Markdown version](/en/publications/cr/issues/2022/11/09/mexico-financial-sector-assessment-program-technical-note-on-selected-issues-in-financial-525579/index.md)
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## Bibliographic details
- Published: November 10, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400224676.002

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### Overall assessment
- 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.

### Key findings and unresolved weaknesses
- Credibility and feasibility of banks’ financial contingency arrangements need further improvement.
- There remain impediments to banks’ resolvability and to the use of:
  - the bridge bank tool, and
  - purchase and assumption transaction resolution tools.
- The resolution regime’s remit does not fully cover financial holding companies and needs expansion.
- The resolution and deposit insurance agency requires reinforcement in:
  - governance,
  - autonomy, and
  - resources.

### Policy recommendations and priorities
- 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.

### Document snapshot
- Publication date: November 10, 2022
- Pages: 32
- Series: IMF Staff Country Reports (Country Report No. 2022/339)

*International Monetary Fund: Mexico: Financial Sector Assessment Program-Technical Note on Selected Issues in Financial Safety Net Arrangements and Financial Crisis Preparedness*

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## Content in this bundle

- **Executive Summary**
  - [Executive Summary (Markdown version)](/-/media/files/publications/cr/2022/english/1mexea2022004.pdf.md){rel="alternate" type="text/markdown"}
  - [Executive Summary (PDF)](/-/media/files/publications/cr/2022/english/1mexea2022004.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2022/11/09/mexico-financial-sector-assessment-program-technical-note-on-selected-issues-in-financial-525579_