Regulatory Alerts2024-05-03
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Comunicado No. 10 Designation of Local Systemically Important Multiple Banking Institutions
The National Banking and Securities Commission (CNBV) designates specific multiple banking institutions as locally systemically important based on an annual evaluation using data as of December 2023. These designated institutions are required to maintain an additional capital conservation supplement ranging from 0.60 to 1.50 percentage points, depending on their assigned systemic importance grade. The designation applies to nine institutions categorized into four grades, with Grade I institutions requiring a 0.60% supplement and Grade IV institutions requiring a 1.50% supplement.
Mexico City, May 3, 2024 Press Release No. 010
The Governing Board of the CNBV Designates Local Systemically Important Multiple Banking Institutions
• Based on the General Provisions Applicable to Credit Institutions (Provisions), and prior agreement by its Governing Board, the National Banking and Securities Commission (CNBV) conducts an annual evaluation of the degree of local systemic importance of all multiple banking institutions, thereby determining those that fall within the category of locally systemically important institutions based on the methodology established in said Provisions.
• Locally systemically important institutions are those whose potential bankruptcy could affect the stability of the financial system or the country's economy. The Provisions establish for these institutions the obligation to constitute a capital conservation supplement, in addition to the 10.5% corresponding to the minimum capitalization index required for all multiple banking institutions and to the Total Loss-Absorbing Capacity (TLAC) capital supplement.
• The Governing Board of the CNBV, in a meeting held on April 30, 2024 and with information as of December 2023, approved the annual evaluation of multiple banking institutions, determining the following institutions as locally systemically important in accordance with the current Provisions:
| Degree of Systemic Importance | Multiple Banking Institutions | Additional Capital Conservation Supplement (percentage points) |
|---|---|---|
| I | Banco Inbursa, S.A., Multiple Banking Institution, Financial Group Inbursa<br>HSBC México, S.A., Financial Group HSBC<br>Scotiabank, S.A., Multiple Banking Institution, Financial Group Scotiabank Inverlat | 0.60 |
| II | Banco Mercantil del Norte, S.A., Multiple Banking Institution, Financial Group Banorte | 0.90 |
| III | Banco Nacional de México, S.A., Member of the Financial Group Banamex<br>Banco Santander (México) S.A., Multiple Banking Institution, Financial Group Santander Mexico | 1.20 |
| IV | BBVA México, S.A., Multiple Banking Institution, Financial Group BBVA Mexico | 1.50 |
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