Development banking in Mexico does not play an important role, lamented Marcelo Ebrard, Secretary of Economy.
In a workshop held at the Ministry of Economy, the official stated that there is a historic opportunity, because the party in power, Morena, has a qualified majority.
Development banking in Mexico
“We have a level of support where you can make very big changes, qualitatively speaking,” he added.
Ebrard considered that much of the organization Mexico has is not designed for a government with visions as its primary orientation.
“For example, the development banking system has been made a second-tier banking system: it is very expensive and is not playing an important role,” he said.
Currently, the Mexican development banking system is made up of six institutions, with a broad spectrum in terms of areas of attention, including small and medium-sized enterprises, public infrastructure, foreign trade support, housing, savings enhancement and credit to the armed forces. These institutions are:
- Nacional Financiera, S.N.C. (NAFIN).
- Banco Nacional de Obras y Servicios Públicos, S.N.C. (BANOBRAS).
- Banco Nacional de Comercio Exterior, S.N.C. (BANCOMEXT).
- Sociedad Hipotecaria Federal, S.N.C. (SHF).
- Banco del Bienestar, S.N.C. (Welfare Bank).
- Banco Nacional del Ejército, Fuerza Aérea y Armada, S.N.C. (Banco Nacional del Ejército, Fuerza Aérea y Marina, or BANJERCITO).
BANOBRAS, NAFIN and BANCOMEXT are the three largest Mexican development banks in terms of loans outstanding.
NAFIN’s main activities include:
- Granting credit to small and medium-size companies.
- Promoting the development of the securities market.
- Acting as the government’s financial agent in certain international transactions.
BANOBRAS’ main activities include:
- Providing short, medium and long-term financing to public enterprises and federal, state and municipal governments.
- Providing credit for low-income housing.
Water
Ebrard expounded that an industrial policy without financial resources is a policy orientation. “But nothing else, it has no resources,” he said.
“If we have everything to make very big changes, why don’t we make them; because otherwise, it is not possible to reach a solution; I was thinking about water and other issues that were discussed (at the workshop),” he added.