Mexican financial system


The financial systems are a group of institutions that can be financial and government , media and markets through which we can ensure that the money achieve circular adequately in economies for it to be used in different types of activities. All countries have systems of this type to be able to correctly manage monetary funds , in that case we will refer to the Mexican system .


What is the Mexican financial system?


The Mexican financial system is a system that consists of several markets and intermediaries financial whose main function is to mobilize the money of the savings to invest in productive purposes through a series of services and financial instruments .

  • Characteristics of the Mexican financial system
  • Background
  • History of the Mexican financial system
  • What is it for
  • How does it work
  • Composition
  • Structure
  • Sectors
  • Regulatory institutions of the Mexican financial system
  • Importance

Characteristics of the Mexican financial system

Some of the most notable characteristics of the Mexican financial system are mentioned below:

  • It is based on the state budget .
  • Through this system redistributes one 40% of the national income of the country.
  • The main income comes from taxes .
  • Generates, collects, manages and directs savings and investment .
  • It groups together various types of institutions and organizations that are linked.
  • It trains , regulates , manages and channels all the national and international economic resources.


The antecedents of the Mexican financial systems find their antecedents in the creation and history of Mexican banking and credit when in 1775 the first pledge credit institution was founded in the country.

History of the Mexican financial system

Its history begins in the mid- nineteenth century when the first financial groups emerged in the country. In 1864 the branch of the London bank was created and years later, the Mexican National Bank which operated with Egyptian capital. By 1888 , banks had been created in places like Yucatán , Chihuahua, and Mexico City . In 1894 the National Stock Exchange was created and in 1895 the Mexico Stock Exchange .

Over the years, the Credit Institutions Law was promulgated and between 1913 and 1915, President Victoriano Huerta was in charge of imposing loans to banks and in 1917, the country’s Constitution established that the only entity that could issue banknotes would be the Banco de México which was founded in 1925 . Little by little, the statutes of the country’s Stock Exchange and financial companies were approved , and the Universal Banking model began . By 1974, different types of financial groups had been recognized.

What is it for

The Mexican financial system serves to act as an intermediary between people who have money , who are known as savers with those who need it , who are known as debtors. They provide a series of services to clients which are:

  • Credit services : credit cards, car or house credit, payroll credits, etc.
  • Savings and deposit services : include bank accounts, savings accounts, investments.
  • Insurance : is a type of policy that insurers provide in order to provide protection to health and personal property.
  • Pensions : include the money that is administered through the Afores.

How does it work

This Mexican financial system works properly thanks to the investment of foreign capital as well as the application of good strategies and practices . The design of public policies and regulatory frameworks allow the system to reinvent, transform and adapt to intermediaries. It can function properly thanks to institutions and agencies that, despite working independently, interrelate within the same framework. Are these entities that are responsible for solving needs of money movement so that it is available to customers.


Mexico’s financial system is made up of markets and financial intermediaries . The Bank of Mexico plays a very important role in it, trying to find and balance the economic development of the country through the establishment of policies that collaborate in determining the prices to be used in financial markets , including the regulation of rates of interest and the types of changes that occur in the currency . Financial markets can be physical or also virtualand they are the places where all operations and product exchanges take place. There are three important ones that are:

  • Debt market : here are issued debt securities which function as an instrument of financing. It is responsible for replacing bank loans.
  • Stock market: through this market, companies have the ability to issue new capital and do not have the need to borrow, so the company will only pay profits to new shareholders .
  • Exchange market : the currency market and he can buy and sell the currencies of other countries.

Regarding financial intermediaries, we find the following:

  • Afores : they are the administrators of the retirement funds and their function is to be able to save for future withdrawals.
  • Banks : they are the most common and have the role of acting as a type of intermediary between those who have money and have savings as a plan and between people who do not need the money but who make the decision to lend it.
  • Brokerage houses : they are responsible for issuing the purchase and sale of shares and various types of financial instruments .
  • Insurers : they are known as insurance companies and give clients the option to cover their expenses in the event of an unforeseen health or belongings.


The structure of the Mexican financial system is constituted and conformed by the following institutions. The first group belongs to the governing bodies, which are institutions whose function is to regulate , supervise and monitor the entire financial system. Among them you can find:

  • Secretariat of Finance and Public Credit
  • Bank of Mexico
  • Institute for the Protection of Bank Savings
  • National Insurance and Finance Commission
  • National Commission of Retirement Savings Systems

The second group belongs to the operating institutions , these have the function of creating an intermediary entity for financial operations and sectors . We find the following institutions:

  • Banking sector
  • Stock Market
  • Popular Savings and Credit Sector
  • Controller of Financial Groups
  • Insurance and Surety Sector
  • Public funds and trusts.

The third group belongs to the support institutions which are in charge of providing support for an adequate development in the market . Among these institutions we find the following:

  • Stock Brokerage Association
  • Mexican stock exchange
  • Mexican Derivatives Market Exchange
  • Institute for the Deposit of Securities


The sectors of the Mexican financial system include the credit institutions which are the banking self-regulatory organizations , the financial subsidiaries, the capital investments and the complementary services companies. The stock market includes all investment companies including, for example, the stock market, the provision of services to investment companies, price providers and institutions that are responsible for rating securities.

Thirdly, we can find the sector of non-bank financial intermediaries which include different organizations and activities that function as credit assistants, here you can find financial leasing companies, credit unions, exchange houses and financial companies. Finally, there is the popular savings and credit sector, where the federations, protection funds and the rural financial integration organization are located.

Regulatory institutions of the Mexican financial system

The Mexican financial system includes a group of authorities who are in charge of establishing a series of guidelines and regulating all the activities that take place in the institutions to properly manage capital. Among the types of entities are the following:

  • National Baking and Stock Commission
  • Secretariat of Finance and Public Credit
  • National Commission of the Retirement Savings System
  • Secretariat of Finance and Public Credit
  • Institution for the Protection of Bank Savings


The importance of having the Mexican financial system is the promotion of the economic development of the country that it generates because it allows investment to be directed towards activities that are more productive . This means that society can progress to meet the needs of study , housing and work . It is through this type of system that it is also possible to provide more attractive returns and greater liquidity .

It is also of vital importance because it has a transactional function, thus facilitating the payment of goods and services , trade and the exchange of people and countries. It is a means by which the society of a country can develop and grow significantly while favoring the inhabitants of the country.

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