Mérida, Yucatán.- The insolvency which they faced US banks Silicon Valley Bank, Signature Bank y Silvergate Bank was due for a maladministration and not because of the increase in the reference rate by the Federal Reserve, considered the deputy governor of the Bank of Mexico (Banxico), Irene Espinosa.
“The announcement of the rate increase was made early and moderately. So, the problem is not so much because of the rises, in fact some banks made profits; It was a matter of mismanagement”emphasized Espinosa in interview with El Sol de México prior to the inauguration of the 86 Banking Convention.
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Regarding whether the Banxico Governing Board has detected whether some bank has been hit for the increases they have made, he replied:
“The bank issues the financial stability report where a microprudential and macroprudential review is made regarding the state of the financial system, all this information is relevant for our decision making.”
On the other hand, the deputy governor of Banxico considered that the Mexican banking does not run the risk of catching bankruptcies presented by those three US banks, since the regulation in Mexico allows for a well-capitalized and resilient system.
He explained that in the United States, the regulation of the banking system is very different the one you have in Mexico.
In the neighboring country there is a differentiated regulation between the banks of each region and the Mexican banking has a general regulation.
“Under this regulation it is clear that the Mexican banking system is well capitalized, resilient and that there is no risk similar to what happened in these banks; there is also no risk of contagion because Mexican banks do not have a relationship with this bank (SVB) either”he referred.
Espinosa recalled that after the financial crisis of 2008-2009, Mexico shielded its financial system with a regulation that allows it to remain solid in the face of various externalities. In fact, it has an early warning system that makes it possible to identify a possible insolvency problem.