Bank of Montreal, Mizrahi Tefahot Bank Leave Mexico

Two foreign banks closed their representative offices in Mexico and had their authorized establishment status revoked, announced the Ministry of Finance and Public Credit, through the National Banking and Securities Commission (CNBV), reported El Economista. The announcement was made official on the Nation’s Official Gazette (DOF) two days ago when it published the closure of the representative offices in Mexico of the Bank of Montreal from Canada and the Israeli Mizrahi Tefahot Bank, Ltd.
CNBV informed that the Treasury had authorized the establishment of the representative office of the Canadian bank, Bank of Montreal, in Mexico in 1963. However, DOF mentions a session held on Jan. 30 when the Commission's board ruled in favor of the revocation of the bank’s authorized establishment status. “We refer to the documents it presented on Nov. 14, 2019, and Jan. 14 and 17, 2020, by which it informed the Commission of the definitive closure of Bank of Montreal’s […] representation in Mexico, consequently requesting the revocation of the corresponding authorization,” reads the official letter regarding the closure of the financial entity’s representative office.

Concerning the Israelian entity, the Ministry also announced the definitive closure of the representative office of Mizrahi Tefahot Bank, Ltd. The bank received permission from the Treasury for the establishment of a representative office in Mexico back in 2001, reads the official letter. “We refer to the documents filed on Oct. 1, 2019, and Jan. 10, 2020, by which Mizrahi Tefahot Bank, Ltd., notified this Commission of the definitive closure of Mizrahi Tefahot Bank, Ltd’s representative office in Mexico, consequently requesting the revocation of the corresponding authorization,” reads DOF’s letter. In January 2020, the CNBV's governing board passed the revocation.

While two bank representative offices close, new banks come to Mexico. Earlier this month MBN reported on the interest of Creditas, a Brazilian unicorn fintech, in pursuing the Mexican market. Creditas’ CEO Sergio Furio explained to Forbes Mexico the many areas of opportunity he sees in the country. Mexico offers optimism for many in the fintech sector, he said.

“The fintech sector has evolved positively in Mexico. There are many more players than when we started. We were among the first in 2011 in online credit and now we see a lot of fintech coming out of the sewers, not only in the wake of the pandemic but before,” Gerardo Obregón, CEO of Prestadero, told El Universal.