What institutions make up the Mexican Financial System?
Do you know where to go if you have a problem with an institution that provides services and products? In Mexico there are different agencies that can clarify doubts and resolve complaints with a business or company and each one has its own specifications.
To begin with, the highest authority that regulates and supervises the other financial institutions is the Ministry of Finance and Public Credit. Others emerge from this organism, which are explained below:
National Commission for the Protection and Defense of Users of Financial Services (Condusef)
By its acronym, Condusef, is the agency that helps in the event of a dispute with an entity that offers financial services such as insurance, banks, Afores, Mortgages, among others.
In the same way, it helps to improve the culture of savings and finances with its different education programs.
National Insurance and Surety Commission (CNSF)
It is the agency that regulates and authorizes financial companies that offer property, personal and health insurance products. Similarly, it checks that they preserve solvency and financial stability and that they guarantee the interests of the general public.
National Commission for the Retirement Savings System (Consar)
Regulates and oversees that Afores adequately manage workers’ savings. On this website it is possible to learn about the Afore in which you are, how to change the Administrator or locate it. As well as the way to enter voluntary savings in your account, among other specifications.
National Banking and Securities Commission (CNBV)
It regulates the institutions that offer loans, savings accounts, investment instruments or currency exchange.
In its portal you can find out about the business financing surveys. There is also a section for complaints and citizen complaints against public servants of the CNBV or any other institution of the Federal Government.
Bank of Mexico (Banxico)
Its multiple functions include providing citizens with national currency and controlling inflation. It also ensures that the financial system works in the best way possible.
Federal Consumer Prosecutor’s Office (Profeco)
It is a government institution that supports and protects the rights of consumers, although it should be noted that it achieves this for products that are not in the insurance and finance sector, since Condusef is in charge of this.
They are the Financial Companies that grant loans and leases to individuals or companies. Some of its operations are home and auto loans, as well as loans to small and medium-sized companies.
They are institutions that are responsible for guaranteeing the payment acquired by a person. In order for them to perform their function, they require a contract.
The Retirement Fund Administrators are in charge of controlling and managing the money of their workers, trying to generate higher returns so that the employee can retire with a good amount of money to meet their basic needs.
These financial institutions are responsible for solving or covering most of the expenses generated by an incident such as car collisions, surgeries for diseases, payment for damages to third parties in their property, compensation to relatives for the death of the head of the family, etc. .
These endorsements will depend on the insurance contracted, the main ones are: Life, Medical Expenses, Damages, Cars, House, Motorcycles, Travel, etc.
The Investment Companies Specialized in Retirement Funds are the instrument used by the Afores to invest the worker’s money so that he increases and increases the amount of his pension.
Institutions that are part of the National Banking System, but that are constituted as national credit societies to facilitate access to financing for individuals and legal entities, for example, they do it for small companies, or they grant loans to low-income families so that they obtain a house. Likewise, they provide financing for rural products to low-income people.
Institution for the Protection of Bank Savings (IPAB)
The IPAB is a decentralized body that protects the deposits of savers and facilitates financial stability and the payment system.
The IPAB guarantees the payment of banking operations up to an amount equivalent to 400 thousand investment units (UDIs) per individual, legal entity or banking institution.
Deposit insurance is provided automatically and is free for anyone who hires a bank and enters their savings.
In addition to the Brokerage House and Investment Funds, which are institutions that allow both the general public and companies to access investment instruments, shares and other stock operations.
Hence, the Stock Market such as the one that groups together the financial institutions that issue and place investment instruments.
Financial Group Controllers
Various financial entities are grouped together to have a better organization of these institutions thanks to a corporate policy that also allows them to cover other financial services offered by each entity that makes it up.
Credit Information Companies
The Credit Bureau and the Credit Circle belong to this group as they are in charge of managing and delivering the credit information of individuals and legal entities to institutions that offer financing or some type of credit.
Non-bank intermediaries sector
They are those companies that function as financial auxiliaries such as exchange houses, credit unions, leasing companies, etc.
Exchange houses, factoring companies, leasing companies, credit unions
Exchange houses are sites authorized to offer the general public the purchase, exchange or sale of foreign currency.
Factoring companies make it possible to finance production chains through the purchase of accounts receivable. Likewise, they offer credit and collection analysis.
The SOFOMESThey are companies that provide loans and are not necessarily authorized by the respective authorities to operate.
The lessors buy a good, such as a car, so that the user can use it for a certain period of time and in return they pay a rent.
Credit Unions are public limited companies supervised by the CNBV that provide financing to their partners and offer optimal conditions to save or receive loans.
SOCAP, SOFIPOS and SOFINCOS
Savings and Loan Cooperative Societies (SOCAP), Popular Financial Society (SOFIPO), Community Finance Societies (SOFINCOS) support access to savings and loans to members, also providing attention to the productive needs of rural areas.
For example, a SOFIPO is empowered to receive deposits, issue payment orders or transfers, distribute insurance and bonds, among others.
Savings and Popular Credit Sector
They focus on users in rural areas who find it difficult to access banking. These institutions grant savings and credit, an example of these companies is the Savings Banks.
It is important to mention that any Society or Credit and Savings Institution must be registered and authorized by the SHCP. Another way to find out if they operate legally and their quality of service is through the Condusef Financial Entities Bureau.