Mexican president urges bank competition to boost financial inclusion By Reuters

© Reuters. FILE PHOTO: Mexico’s President Andres Manuel Lopez Obrador speaks to the media during a news conference to announce a plan to strengthen finances of state oil firm Pemex, at the National Palace in Mexico City

ACAPULCO, Mexico (Reuters) – Mexico’s president and the head of the country’s banking association on Friday called for more competition among banks to drive them to offer lower commissions, in a bid to help millions of Mexicans without bank accounts to enter the formal economy.

If needed, the government would offer more licenses to create new banks and spur competition, President Andres Manuel Lopez Obrador said at a banking convention in Acapulco. He also reiterated a commitment to not create laws that would regulate bank commissions.

The president of the Mexican banking association, Luis Nino de Rivera, said banks were committed to “auto regulation” and to improving competition. In particular, he said, banks should not charge any commissions for digital accounts.

Banking costs are a sensitive issue in Mexico, where officials have struggled to improve financial inclusion for the millions of people who do not have bank accounts.

When Lopez Obrador’s ruling MORENA party introduced a bill last year to limit banking fees it triggered a selloff in the stock market. Lopez Obrador distanced himself from the bill. He also said there would be no legal modifications on economic, financial and fiscal matters in the first half of his six-year term.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.