Mexico’s Competitive Banking System

At the opening of the 75th Banking Convention in Mexico, President Calderon said the country’s financial sector is well fortified against external shocks.

ACAPULCO, May 18. – Facing a backdrop of the international financial uncertainty and other countries in economic crisis, Mexico’s President Felipe Calderon said “we have a stable and growing economy that creates jobs, attracts investments. We are not afraid of global competition, as we have better infrastructure and our human resources are more competitive and better prepared. ”

Calderon launched this meeting of bankers with the news that one of the leading rating agencies, Moody’s had lowered its ratings of the debt of Spanish banks two of which, BBVA and Santander, have thriving business in Mexico.

During the inauguration of the 75th Banking Convention, which began yesterday and ends today in Acapulco, Calderon said that the banking system has a capitalization rate on assets of about 16 percent, a level that “is twice the international standard. The Mexican financial system is strong today. ”

“The Mexican financial system is strong today”

This, he added, at a time when “the world has seldom seen a financial crisis this prolonged and deep in the largest and most powerful economies.”

Promote Changes and Reforms Required

Calderon said the country has all the elements required to make the leap to being a fully developed economy over the coming years, but “that it is still needs to pass several key pieces of legislation to labour reforms, telecommunications and energy, and that the changes Mexico needs cannot be hijacked by special political interests.”

He pointed out to nearly two thousand bankers, analysts, academics, legislators and public officials, that if Mexico “follow through with these reforms and perseveres in law enforcement and public safety, this may be the decade of the greatest growth in many, many years.”

“Mexico must endure prosperity through the rule of law”

The governor of the Bank of Mexico, Agustin Carstens, concurred:

“Mexico must endure prosperity through the rule of law. So it is important to fight crime, which is a basic obligation of the state, and thus to advance reforms to support to police officers, public prosecutors, and judges. ”

On several occasions during his speech, Calderon reiterated the theme that “we must continue to promote and demand the reforms Mexico needs to occupy its rightful place among the world’s most developed economies.”

In summary Mr Calderon delivered, an upbeat message about the strengths of the domestic banking system which contrasts with Europe’s despair.