CONCENTRATION AND INTERNATIONALIZATION OF THE MEXICAN BANKING SECTOR

Significant structural changes of the Mexican banking industry have resulted in greater concentration: first, the 1982 expropriation and government control; later on, in 1990, the decision to re-privatize it. In addition, when the economy turned around in 1994–1995, the financial health of several banks rapidly deteriorated and ended in one of the most critical financial crisis the country has experienced. Among the bold measures taken to rescue the system, the banking industry was fully open to foreign investment. At the time of this writing, more than 80% of the banking industry in Mexico is controlled by foreign world class banks.