Mexico’s Prosofipo Expands Assets as Sofipo Solvency Risks Rise

Mexico’s deposit insurance fund for popular financial institutions, known as Prosofipo, increased its assets by 149% in 2024, amid concerns over the solvency of certain savings and loan entities, including Sofipo CAME.

According to Prosofipo’s financial data, the fund ended 2024 with a net worth of MX$597 million, a significant increase from the previous year. The fund provides deposit protection for customers of Sofipos, insuring up to 25,000 UDIs per person, equivalent to approximately MX$211,000.

The asset growth was driven by rising savings activity within the Sofipo sector, particularly among digital entities. By December 2024, total savings held by the 34 operating Sofipos reached MX$151 billion, reflecting a 173% real annual increase.

Prosofipo’s resources come mainly from mandatory monthly contributions by Sofipos, equivalent to 0.3% annually of their liabilities. Government contributions also play a secondary role in building the fund’s capital.

The financial instability of CAME has sparked concerns about whether the fund could cover its obligations should regulators revoke the entity’s operating license. As of December, CAME held MX$1.6 billion in savings deposits, with 90% in fixed-term accounts. Although the institution previously offered investment products with annual returns exceeding 15%, it ended 2024 with a 22% drop in total savings compared to 2023.

While regulators have not announced a decision on CAME’s future, Prosofipo would be tasked with compensating depositors within the insured limit if the entity is shut down.

The fund is currently managing payouts for two recently revoked Sofipos—Auxi and Impulso para el Desarrollo—and addressing outstanding obligations from earlier cases, such as Operadora Reforma.