Bolstered by stronger capital reserves and a growing demand for credit by companies and consumers, the Mexican banking sector is geared up to navigate its way through a delicate operating environment this year as economic growth slows to nearly 4%.
The Center for Responsible Lending (CRL) assesses the impact of the financial crisis on American families, showing the magnitude of the damage to their financial security--that is, their household balance sheet. In addition, this study looks at a broad range of current lending practices and their impacts.
Sumeet H. Chugani and
Ricardo Ortiz, associate attorneys
at Diaz, Reus & Targ, LLP:
"Remittances to Latin America
are rebounding after an 18-month
downturn. From 1998 to 2008, remittances
to the region increased an average
of 15 percent each year. Because remittances
continue to be an indispensable
lifeline for many throughout Latin
America and the Caribbean, their recent
decline (although modest) posed a significant
hardship to individuals and governments
alike.
Este documento proporciona instrucciones para crear un blog gratuito en Blogger/Blogspot y ganar dinero con Google AdSense sin necesidad de inversión inicial. Explica los 14 pasos clave, que incluyen abrir cuentas en Gmail, Blogger y AdSense, escribir contenido regularmente (al menos 3 artículos diarios), optimizar el blog para SEO, instalar Google Analytics y verificar el blog en Google Webmaster Tools. La clave principal es publicar contenido útil y actualizado con frecuencia para atraer tráfico orgánico y ganar dinero a trav
This document discusses brain specialization and assessment in education. It begins with information about hemispheric lateralization, with functions like language and logic associated more with the left hemisphere, and functions like spatial reasoning associated more with the right hemisphere. The document then discusses assessment, including its purposes of providing feedback and informing decision making. It outlines principles of assessment like demonstrating learning outcomes and using valid, reliable, and comprehensive evidence. Sources of evidence for assessment and techniques like observation and consultation are also mentioned.
Tarea 2 funcionalidad de los bloques de moodledprofesional
Los bloques de Moodle permiten añadir elementos interactivos en las páginas del curso para proporcionar información rápida a los usuarios. Algunos bloques comunes incluyen actividades, calendario, mensajes, personas y cursos, cada uno con funciones específicas como mostrar eventos, mensajes nuevos, lista de participantes o cursos del usuario. Los bloques se pueden colocar en diferentes partes de la página y su disponibilidad depende de la configuración y permisos del curso.
Este documento describe Museos2.0, un proyecto que crea herramientas de contenido inteligente para museos virtuales colaborativos usando tecnologías de la web semántica. El proyecto define una ontología de contenido artístico y crea herramientas para catalogación, extracción de rasgos semánticos, guías virtuales personalizadas, visitas virtuales 3D y etiquetado colaborativo. El objetivo es proporcionar un espacio para el diálogo y promoción de artistas emergentes usando estas nuevas
The Center for Responsible Lending (CRL) assesses the impact of the financial crisis on American families, showing the magnitude of the damage to their financial security--that is, their household balance sheet. In addition, this study looks at a broad range of current lending practices and their impacts.
Sumeet H. Chugani and
Ricardo Ortiz, associate attorneys
at Diaz, Reus & Targ, LLP:
"Remittances to Latin America
are rebounding after an 18-month
downturn. From 1998 to 2008, remittances
to the region increased an average
of 15 percent each year. Because remittances
continue to be an indispensable
lifeline for many throughout Latin
America and the Caribbean, their recent
decline (although modest) posed a significant
hardship to individuals and governments
alike.
Este documento proporciona instrucciones para crear un blog gratuito en Blogger/Blogspot y ganar dinero con Google AdSense sin necesidad de inversión inicial. Explica los 14 pasos clave, que incluyen abrir cuentas en Gmail, Blogger y AdSense, escribir contenido regularmente (al menos 3 artículos diarios), optimizar el blog para SEO, instalar Google Analytics y verificar el blog en Google Webmaster Tools. La clave principal es publicar contenido útil y actualizado con frecuencia para atraer tráfico orgánico y ganar dinero a trav
This document discusses brain specialization and assessment in education. It begins with information about hemispheric lateralization, with functions like language and logic associated more with the left hemisphere, and functions like spatial reasoning associated more with the right hemisphere. The document then discusses assessment, including its purposes of providing feedback and informing decision making. It outlines principles of assessment like demonstrating learning outcomes and using valid, reliable, and comprehensive evidence. Sources of evidence for assessment and techniques like observation and consultation are also mentioned.
Tarea 2 funcionalidad de los bloques de moodledprofesional
Los bloques de Moodle permiten añadir elementos interactivos en las páginas del curso para proporcionar información rápida a los usuarios. Algunos bloques comunes incluyen actividades, calendario, mensajes, personas y cursos, cada uno con funciones específicas como mostrar eventos, mensajes nuevos, lista de participantes o cursos del usuario. Los bloques se pueden colocar en diferentes partes de la página y su disponibilidad depende de la configuración y permisos del curso.
Este documento describe Museos2.0, un proyecto que crea herramientas de contenido inteligente para museos virtuales colaborativos usando tecnologías de la web semántica. El proyecto define una ontología de contenido artístico y crea herramientas para catalogación, extracción de rasgos semánticos, guías virtuales personalizadas, visitas virtuales 3D y etiquetado colaborativo. El objetivo es proporcionar un espacio para el diálogo y promoción de artistas emergentes usando estas nuevas
Ccleaner es un programa que limpia archivos temporales de internet y programas obsoletos para optimizar el rendimiento del computador. También repara errores en el registro del sistema, indica actualizaciones de programas, permite ver y desinstalar programas instalados, y contiene herramientas avanzadas como un desinstalador rápido y un editor de programas de inicio.
Este documento presenta una microlección sobre los metadatos dirigida a estudiantes universitarios. Explica que los metadatos son datos que proporcionan información sobre otros datos y que cumplen funciones como la descripción, el acceso y la codificación. También describe los tipos principales de metadatos, sus usos y la importancia de asociar metadatos descriptivos normalizados a objetos en la red para mejorar la búsqueda y recuperación.
Tutorial Gy #1.
Recuerda que con la compra de una paleta de maquillaje, estás donando US$1.00 a la Fundación Gy y llevando maquillaje terapéutico a quienes lo necesitan.
Entra ya a fundaciongy.wordpress.com
gysellalmonte.wordpress.com y @gysellalmonte // facebook.com/gysell.almonte
Minuta cuarta sesión foro comunidades mapuche finalForo Abierto
El documento resume las discusiones de una reunión entre representantes de la empresa forestal Arauco y la comunidad mapuche. Se presentaron tres etapas en la evolución de la relación entre la empresa y las comunidades: inicial indiferencia, luego reconocimiento de las diferencias culturales, y más recientemente iniciativas para mejorar la relación. Los asistentes discutieron propuestas como educar sobre la cultura mapuche, mejorar la señalización en terrenos forestales, y permitir el acceso a recursos no maderables. La empresa reconoció erro
Los grupos de noticias nacen en 1979 como un foro para resolver problemas dentro de una red llamada Usenet, donde los usuarios podían charlar sobre cualquier tema. La información en los grupos de noticias se clasifica en nueve jerarquías como computadoras, ciencia, recreación y temas sociales. El chat es una herramienta de discusión en tiempo real que permite comunicar a personas a distancia a través de teclado, voz o video.
[Case Study] Stedin (The Netherlands) - Underground Self-Healing NetworkSchneider Electric
Stedin wanted to upgrade its infrastructure to better serve its customers and reduce both the frequency and duration of potential power outages. Schneider Electric offered the Dutch utility a cost-effective, automated solution to quickly re-energise its MV network in case of a fault, identifying the fault location and reconnecting the maximum number of consumers and businesses within 1 minute.
Este documento proporciona instrucciones para crear un blog en la plataforma Blogger de Google. Explica cómo registrarse en Gmail y Blogger, asignar un nombre y plantilla al blog, y configurar parámetros básicos como comentarios y perfil de usuario. Finalmente, solicita al lector que cree su propio blog y envíe los detalles a una dirección de correo electrónico especificada.
Este documento presenta una lista de estudiantes con sus respectivas notas en un trabajo práctico (TP) de un curso sobre estado, poder y medios. La lista incluye el nombre de cada estudiante y su nota numérica entre 5 y 10.
El documento explica los 3 pasos para crear un blog en Blogger:
1) Crear una cuenta con una dirección de correo electrónico.
2) Asignar un nombre y dirección URL al blog.
3) Elegir una plantilla de diseño.
E portafolio Maria Eucaris Echeverri B Grupo 201512-24Maria Eucaris
El documento presenta el portafolio de una estudiante de la Universidad Nacional Abierta y a Distancia para el curso de Gestión Empresarial. Incluye resúmenes de videos educativos sobre la organización de empresas y gestión empresarial, reportes de foros colaborativos y de simuladores sobre diferentes temas del curso.
Este documento trata sobre un taller sobre Ambientes Virtuales de Aprendizaje (AVA) y Objetos Virtuales de Aprendizaje (OVA). Explica los entornos en los que opera un AVA, las características de un AVA y los elementos a considerar en su elaboración. También describe las ventajas de usar un AVA en educación y las diferencias entre interacción sincrónica y asincrónica. Finalmente, detalla las actividades en las fases de desarrollo de un AVA y las características de un OVA.
El documento describe las ocho inteligencias múltiples identificadas por Howard Gardner: lingüística, lógico-matemática, espacial, corporal-cinestésica, musical, interpersonal, intrapersonal y naturalista. Para cada una se detallan sus características principales y ejemplos de profesiones relacionadas.
Updating your profile and password on MyVillage can be accessed from the top right corner, My Dashboard, or your logged in user profile. Within My Home, you can edit your profile, change your password, and explore other functions. When editing your profile, follow APTC guidelines by using your first and last name for your username and your APTC email if employed by APTC. To change your password, go to Administration and follow the on-screen instructions.
Este documento explica cómo crear y usar un blog usando el servicio WordPress. Describe los pasos para crear una cuenta de WordPress usando una dirección de correo electrónico, y luego cómo crear entradas de blog y administrarlas usando las opciones en el panel izquierdo como entradas, etiquetas, categorías y comentarios. También menciona la capacidad de ver estadísticas de visitas al blog.
El documento presenta un programa de diplomado en habilidades directivas que se llevará a cabo durante tres bimestres. El programa busca formar a los participantes, que son profesionistas con potencial para cargos de liderazgo, en competencias como la visión estratégica, el liderazgo transformacional, la comunicación y la gestión de capital humano. El diplomado consta de seis módulos temáticos impartidos por diferentes profesores. Se establecen acuerdos sobre la entrega de materiales y el asesoramiento técnico
Projeto Ccc C Cada Crianca Com Um Computador E Um ColoPROJETOAFEICAO
O documento discute a importância de fornecer computadores portáteis e acesso à internet para todas as crianças brasileiras para promover a igualdade educacional e social. Ele argumenta que a tecnologia pode revolucionar a aprendizagem e preparar os estudantes para o futuro, desde que haja reformas na educação para integrar plenamente os computadores no processo de ensino-aprendizagem.
El correo electrónico permite a los usuarios enviar y recibir mensajes rápidamente a través de sistemas electrónicos. Se originó antes de Internet y fue una herramienta crucial para su creación. Para enviar correo, las personas necesitan una dirección de correo electrónico proporcionada por un proveedor de correo. Los principales proveedores de correo electrónico gratuito son Gmail, Hotmail y Yahoo, los cuales ofrecen servicios de webmail.
El documento introduce el tema de la ilustración digital de moda. Explica el surgimiento de las computadoras personales y su influencia en el desarrollo de la ilustración digital. Luego realiza un recorrido por la historia de los dispositivos y software clave, como monitores, mouse, tabletas gráficas, escáneres, programas de edición de imágenes y dibujo vectorial. Finalmente, presenta brevemente a dos ilustradores digitales argentinos y sus procesos creativos.
El documento habla sobre diferentes plataformas de aprendizaje virtual como Moodle. Moodle es un software de código abierto para crear cursos en línea y gestionar contenidos educativos. Ofrece herramientas para que los profesores diseñen cursos, administren alumnos, y evalúen el progreso. También describe otras plataformas como Merlín y Caroline y cómo se usan en escuelas para mejorar la enseñanza y comunicación entre el centro y las familias.
RSS es un formato de fuentes web que permite publicar documentos que se actualizan frecuentemente, como sitios de noticias y blogs, para proveer información a suscriptores. Los agregadores RSS sirven para distribuir esta información sin necesidad de un navegador web, aunque los navegadores modernos también permiten leer RSS.
This document discusses the need for improved financial education in the US. It notes that most Americans lack understanding of complex financial concepts and products, leaving them vulnerable. Additionally, an estimated 10-20 million Americans are "unbanked" without bank accounts. The banking industry and community groups are working to improve financial education, reach the unbanked, and help consumers save and build assets through programs like financial literacy courses, school bank branches, and matched savings accounts. However, more remains to be done to build trust and ensure all consumers can capably manage their money.
1) Canada's financial crisis was much milder than the US due to differences in their mortgage markets. Canada has maximum 5-year mortgage terms, mortgage interest is not tax deductible, and CMHC oversees mortgages.
2) In the US, 30-year fixed rate mortgages are common, interest is tax deductible incentivizing debt, and multiple agencies regulate housing. Securitization of mortgages led to risky lending and the financial crisis.
3) Lessons include that securitization does not solve the shortage of long-term capital. Regulation is needed for securitization. Proposals to help the US housing market include renegotiating mortgage interest rates or reducing principal amounts for
Ccleaner es un programa que limpia archivos temporales de internet y programas obsoletos para optimizar el rendimiento del computador. También repara errores en el registro del sistema, indica actualizaciones de programas, permite ver y desinstalar programas instalados, y contiene herramientas avanzadas como un desinstalador rápido y un editor de programas de inicio.
Este documento presenta una microlección sobre los metadatos dirigida a estudiantes universitarios. Explica que los metadatos son datos que proporcionan información sobre otros datos y que cumplen funciones como la descripción, el acceso y la codificación. También describe los tipos principales de metadatos, sus usos y la importancia de asociar metadatos descriptivos normalizados a objetos en la red para mejorar la búsqueda y recuperación.
Tutorial Gy #1.
Recuerda que con la compra de una paleta de maquillaje, estás donando US$1.00 a la Fundación Gy y llevando maquillaje terapéutico a quienes lo necesitan.
Entra ya a fundaciongy.wordpress.com
gysellalmonte.wordpress.com y @gysellalmonte // facebook.com/gysell.almonte
Minuta cuarta sesión foro comunidades mapuche finalForo Abierto
El documento resume las discusiones de una reunión entre representantes de la empresa forestal Arauco y la comunidad mapuche. Se presentaron tres etapas en la evolución de la relación entre la empresa y las comunidades: inicial indiferencia, luego reconocimiento de las diferencias culturales, y más recientemente iniciativas para mejorar la relación. Los asistentes discutieron propuestas como educar sobre la cultura mapuche, mejorar la señalización en terrenos forestales, y permitir el acceso a recursos no maderables. La empresa reconoció erro
Los grupos de noticias nacen en 1979 como un foro para resolver problemas dentro de una red llamada Usenet, donde los usuarios podían charlar sobre cualquier tema. La información en los grupos de noticias se clasifica en nueve jerarquías como computadoras, ciencia, recreación y temas sociales. El chat es una herramienta de discusión en tiempo real que permite comunicar a personas a distancia a través de teclado, voz o video.
[Case Study] Stedin (The Netherlands) - Underground Self-Healing NetworkSchneider Electric
Stedin wanted to upgrade its infrastructure to better serve its customers and reduce both the frequency and duration of potential power outages. Schneider Electric offered the Dutch utility a cost-effective, automated solution to quickly re-energise its MV network in case of a fault, identifying the fault location and reconnecting the maximum number of consumers and businesses within 1 minute.
Este documento proporciona instrucciones para crear un blog en la plataforma Blogger de Google. Explica cómo registrarse en Gmail y Blogger, asignar un nombre y plantilla al blog, y configurar parámetros básicos como comentarios y perfil de usuario. Finalmente, solicita al lector que cree su propio blog y envíe los detalles a una dirección de correo electrónico especificada.
Este documento presenta una lista de estudiantes con sus respectivas notas en un trabajo práctico (TP) de un curso sobre estado, poder y medios. La lista incluye el nombre de cada estudiante y su nota numérica entre 5 y 10.
El documento explica los 3 pasos para crear un blog en Blogger:
1) Crear una cuenta con una dirección de correo electrónico.
2) Asignar un nombre y dirección URL al blog.
3) Elegir una plantilla de diseño.
E portafolio Maria Eucaris Echeverri B Grupo 201512-24Maria Eucaris
El documento presenta el portafolio de una estudiante de la Universidad Nacional Abierta y a Distancia para el curso de Gestión Empresarial. Incluye resúmenes de videos educativos sobre la organización de empresas y gestión empresarial, reportes de foros colaborativos y de simuladores sobre diferentes temas del curso.
Este documento trata sobre un taller sobre Ambientes Virtuales de Aprendizaje (AVA) y Objetos Virtuales de Aprendizaje (OVA). Explica los entornos en los que opera un AVA, las características de un AVA y los elementos a considerar en su elaboración. También describe las ventajas de usar un AVA en educación y las diferencias entre interacción sincrónica y asincrónica. Finalmente, detalla las actividades en las fases de desarrollo de un AVA y las características de un OVA.
El documento describe las ocho inteligencias múltiples identificadas por Howard Gardner: lingüística, lógico-matemática, espacial, corporal-cinestésica, musical, interpersonal, intrapersonal y naturalista. Para cada una se detallan sus características principales y ejemplos de profesiones relacionadas.
Updating your profile and password on MyVillage can be accessed from the top right corner, My Dashboard, or your logged in user profile. Within My Home, you can edit your profile, change your password, and explore other functions. When editing your profile, follow APTC guidelines by using your first and last name for your username and your APTC email if employed by APTC. To change your password, go to Administration and follow the on-screen instructions.
Este documento explica cómo crear y usar un blog usando el servicio WordPress. Describe los pasos para crear una cuenta de WordPress usando una dirección de correo electrónico, y luego cómo crear entradas de blog y administrarlas usando las opciones en el panel izquierdo como entradas, etiquetas, categorías y comentarios. También menciona la capacidad de ver estadísticas de visitas al blog.
El documento presenta un programa de diplomado en habilidades directivas que se llevará a cabo durante tres bimestres. El programa busca formar a los participantes, que son profesionistas con potencial para cargos de liderazgo, en competencias como la visión estratégica, el liderazgo transformacional, la comunicación y la gestión de capital humano. El diplomado consta de seis módulos temáticos impartidos por diferentes profesores. Se establecen acuerdos sobre la entrega de materiales y el asesoramiento técnico
Projeto Ccc C Cada Crianca Com Um Computador E Um ColoPROJETOAFEICAO
O documento discute a importância de fornecer computadores portáteis e acesso à internet para todas as crianças brasileiras para promover a igualdade educacional e social. Ele argumenta que a tecnologia pode revolucionar a aprendizagem e preparar os estudantes para o futuro, desde que haja reformas na educação para integrar plenamente os computadores no processo de ensino-aprendizagem.
El correo electrónico permite a los usuarios enviar y recibir mensajes rápidamente a través de sistemas electrónicos. Se originó antes de Internet y fue una herramienta crucial para su creación. Para enviar correo, las personas necesitan una dirección de correo electrónico proporcionada por un proveedor de correo. Los principales proveedores de correo electrónico gratuito son Gmail, Hotmail y Yahoo, los cuales ofrecen servicios de webmail.
El documento introduce el tema de la ilustración digital de moda. Explica el surgimiento de las computadoras personales y su influencia en el desarrollo de la ilustración digital. Luego realiza un recorrido por la historia de los dispositivos y software clave, como monitores, mouse, tabletas gráficas, escáneres, programas de edición de imágenes y dibujo vectorial. Finalmente, presenta brevemente a dos ilustradores digitales argentinos y sus procesos creativos.
El documento habla sobre diferentes plataformas de aprendizaje virtual como Moodle. Moodle es un software de código abierto para crear cursos en línea y gestionar contenidos educativos. Ofrece herramientas para que los profesores diseñen cursos, administren alumnos, y evalúen el progreso. También describe otras plataformas como Merlín y Caroline y cómo se usan en escuelas para mejorar la enseñanza y comunicación entre el centro y las familias.
RSS es un formato de fuentes web que permite publicar documentos que se actualizan frecuentemente, como sitios de noticias y blogs, para proveer información a suscriptores. Los agregadores RSS sirven para distribuir esta información sin necesidad de un navegador web, aunque los navegadores modernos también permiten leer RSS.
This document discusses the need for improved financial education in the US. It notes that most Americans lack understanding of complex financial concepts and products, leaving them vulnerable. Additionally, an estimated 10-20 million Americans are "unbanked" without bank accounts. The banking industry and community groups are working to improve financial education, reach the unbanked, and help consumers save and build assets through programs like financial literacy courses, school bank branches, and matched savings accounts. However, more remains to be done to build trust and ensure all consumers can capably manage their money.
1) Canada's financial crisis was much milder than the US due to differences in their mortgage markets. Canada has maximum 5-year mortgage terms, mortgage interest is not tax deductible, and CMHC oversees mortgages.
2) In the US, 30-year fixed rate mortgages are common, interest is tax deductible incentivizing debt, and multiple agencies regulate housing. Securitization of mortgages led to risky lending and the financial crisis.
3) Lessons include that securitization does not solve the shortage of long-term capital. Regulation is needed for securitization. Proposals to help the US housing market include renegotiating mortgage interest rates or reducing principal amounts for
The document provides an overview of the causes of the global economic crisis that began in 2007. It discusses how reckless and irresponsible lending practices, including low documentation loans and increasing home prices due to speculation, led to many homeowners defaulting on subprime mortgages in 2006. These defaults were bundled into mortgage-backed securities that were often given high credit ratings and sold off, obscuring the risks. A perfect storm of factors like off-balance sheet vehicles and the "wealth effect" that encouraged risky behavior ultimately caused the system to unravel.
The document discusses the American financial crisis of 2007-2008. It provides background on the subprime mortgage crisis in the United States, which began with rising mortgage defaults in 2007 and led to a global financial crisis. Risky subprime loans were packaged and sold as complex financial derivatives. This caused systemic banking crises as losses mounted. The crisis spread from the housing market to the broader economy, shaking global financial stability. Key factors that contributed to the crisis included reckless lending practices, a culture of greed, cheap credit availability, and the bundling of risky subprime assets into complex securities.
The document analyzes the key causes of the 2007-2008 housing bubble and financial crisis. It discusses several factors:
1) Government policies in the 1970s-2000s that deregulated lending standards in an effort to promote homeownership, making riskier loans more widely available.
2) Government-sponsored entities Fannie Mae and Freddie Mac came under pressure to purchase riskier loans to meet quotas, further spreading risky lending.
3) The Federal Reserve kept interest rates low in the early 2000s, fueling the bubble, then raised rates in 2004-2006, increasing foreclosures on adjustable rate mortgages.
4) Mortgage lenders aggressively targeted riskier borrowers with
Rural households in Mexico frequently borrow small amounts of credit to bridge expenses between income payments like Prospera benefits. These households schedule their borrowing around the timing of Prospera payments, taking loans before payments are received and repaying promptly when funds arrive. While important for managing cash flow, this frequent borrowing likely strains household budgets. The document calls for improved specialized credit options for expenses like health costs, education, and housing to help vulnerable families better afford necessities and investments.
1) The article discusses the promise of microfinance in alleviating poverty by providing financial services like small loans to low-income households that have traditionally been excluded from formal banking.
2) While microfinance programs report high repayment rates of over 95%, most programs remain subsidized and are not financially self-sufficient. There is also limited evidence on the social and economic impacts of microfinance.
3) Going forward, there is a need for more rigorous impact evaluations, understanding how different financial products and incentive structures can best serve the poor, and ensuring microfinance reaches those in deepest poverty rather than just the "better off poor".
Mortgage fraud is one of the fastest growing crimes in the United States, with three categories including fraud for housing, fraud for profit, and fraud for criminal enterprise. Fraud for profit schemes involve multiple industry professionals inflating property values and creating fake credit profiles for profit. Measuring risk in the housing market is difficult and often leads to underestimating risk in booms and overestimating it in recessions, contributing to issues.
This document discusses the causes of the subprime mortgage crisis in the US and its effects on Caribbean islands. The causes included a boom and bust in the housing market, risky mortgage loans, and loose lending practices. The effects on the Caribbean included impacts on trade, tourism, Caribbean financial institutions, foreign direct investment, and remittances. The document reviews literature on these topics and aims to identify the causes and determine the specific effects on the Caribbean economies and sectors.
Ivo Pezzuto - Journal of Governance and Regulation volume 1, issue 3, 2012, c...Dr. Ivo Pezzuto
Journal of Governance and Regulation / Volume 1, Issue 3, 2012, Continued - 1
Pezzuto, I. (2012). Miraculous Financial Engineering or Toxic Finance? The Genesis of The U.S. Subprime Mortgage Crisis and Its Consequences on The Global Financial Markets and Real Economy
FEDERAL RESERVE BANK OF ST. LOUIS REVIEW SEPTEMBEROCTOBER 200.docxmydrynan
FEDERAL RESERVE BANK OF ST. LOUIS REVIEW SEPTEMBER/OCTOBER 2008 531
The Credit Crunch of 2007-2008:
A Discussion of the Background,
Market Reactions, and Policy Responses
Paul Mizen
This paper discusses the events surrounding the 2007-08 credit crunch. It highlights the period
of exceptional macrostability, the global savings glut, and financial innovation in mortgage-backed
securities as the precursors to the crisis. The credit crunch itself occurred when house prices fell
and subprime mortgage defaults increased. These events caused investors to reappraise the risks
of high-yielding securities, bank failures, and sharp increases in the spreads on funds in interbank
markets. The paper evaluates the actions of the authorities that provided liquidity to the markets
and failing banks and indicates areas where improvements could be made. Similarly, it examines
the regulation and supervision during this time and argues the need for changes to avoid future
crises. (JEL E44, G21, G24, G28)
Federal Reserve Bank of St. Louis Review, September/October 2008, 90(5), pp. 531-67.
that the phrase “credit crunch” has been used
in the past to explain curtailment of the credit
supply in response to both (i) a decline in the
value of bank capital and (ii) conditions imposed
by regulators, bank supervisors, or banks them-
selves that require banks to hold more capital
than they previously would have held.
A milder version of a full-blown credit crunch
is sometimes referred to as a “credit squeeze,”
and arguably this is what we observed in 2007
and early 2008; the term credit crunch was already
in use well before any serious decline in credit
supply was recorded, however. At that time the
effects were restricted to shortage of liquidity in
money markets and effective closure of certain
capital markets that affected credit availability
between banks. There was even speculation
T
he concept of a “credit crunch” has a
long history reaching as far back as the
Great Depression of the 1930s.1 Ben
Bernanke and Cara Lown’s (1991) classic
article on the credit crunch in the Brookings
Papers documents the decline in the supply of
credit for the 1990-91 recession, controlling for
the stage of the business cycle, but also considers
five previous recessions going back to the 1960s.
The combined effect of the shortage of financial
capital and declining quality of borrowers’ finan-
cial health caused banks to cut the loan supply
in the 1990s. Clair and Tucker (1993) document
1
The term is now officially part of the language as one of several
new words added to the Concise Oxford English Dictionary
in June 2008; also included for the first time is the term
“sub-prime.”
Paul Mizen is a professor of monetary economics and director of the Centre for Finance and Credit Markets at the University of Nottingham
and a visiting scholar in the Research Division of the Federal Reserve Bank of St. Louis. This article was originally presented as an invited
lecture to the Groupemen ...
This document analyzes factors that determine the financial margins on credits granted by commercial and development banks in Mexico. It uses data on over 313,000 loans from 2007. The authors find empirical evidence of differences in the determinants of financial margins between bank types. Results suggest development banks do not pursue profitability as strongly as commercial banks. Development banks seem to offer lower rates to raise credit supply, unlike commercial banks which aim for profits.
This document analyzes factors that determine the financial margins on loans granted by commercial and development banks in Mexico. It uses data on over 313,000 loans from 2007. The authors find empirical evidence of differences in the determinants of financial margins between bank types. Results suggest development banks do not pursue profitability as a primary objective like commercial banks. Development banks seem to offer lower rates to increase credit supply in Mexico.
This document summarizes a speech given by Anand Sinha, Deputy Governor of the Reserve Bank of India, about the changing contours of the global financial crisis and its impact on the Indian economy. The speech discusses how the crisis originated in the US subprime mortgage market and then morphed into a full-blown global economic crisis and sovereign debt crisis. It analyzes the impact of the crisis on global output, financial markets, banking systems, and policy responses. Regarding India, the speech will cover the impact of both crises on India's real sector, financial markets, and banking system.
This introduction summarizes the various articles contained in the issue of Housing Finance International. It provides context on recent economic developments in Asia and their impact on housing markets. It then previews each of the five articles, concisely summarizing their topics and key arguments. The first article examines the banking crises in Sweden and Japan in the 1990s and their effects on housing. The second reviews the impact of the financial crisis on mortgage markets in former Soviet countries. The third discusses enhancing tools to measure and manage mortgage default risk. The fourth argues for a contextual policy approach to housing challenges in Central and Eastern Europe. The fifth suggests using financial derivatives to separate the economic value and shelter value of homeownership.
The document summarizes arguments about the causes of the 2007-2008 global financial crisis. It discusses how a combination of easy credit, rising housing prices, subprime mortgages, and systemic linkages between financial institutions led to a crisis larger than expected losses could explain. The regulatory framework failed to mitigate moral hazard or consider how interlinkages could spread shocks, while quantitative models underestimated risks. Overall, globalization and asymmetric information exacerbated systemic risk in the financial system.
The private equity market in Mexico presents exceptional opportunities for investment. Several factors contribute to this, including macroeconomic stability, improvements to the legal framework, abundant investment opportunities, and growing private equity activity. If recommendations to establish a local limited partnership structure and allow pension funds to invest in private equity are implemented, it could fuel rapid growth in the Mexican private equity industry over the next 5 years, similar to growth seen in other markets. European and US investors would be wise to pay attention to private equity managers in Mexico to capitalize on this opportunity.
This document provides an abstract and introduction for a research paper about the causes of the Great Recession. The paper will examine the housing and credit bubbles that contributed to the recession and study how improving financial literacy could help prevent future crises. The introduction discusses the motivation for the research and provides background on the bursting of the housing bubble and credit crunch. It analyzes the impacts of deregulation that allowed riskier lending and the merger of banks and insurance companies. The document will review literature on these topics and survey students' financial knowledge to understand how awareness could impact financial crises.
The document discusses mortgages in Washington DC and the factors that contributed to the mortgage and foreclosure crisis. It notes that due to high home prices in the DC area, most homeowners put down less than 20% for a down payment on new property purchases. Homeowners often put down just 5%, 10%, or even 0% down, obtaining what are known as "no money down home loans" or "100% financing home purchase loans", through obtaining two separate loans - one for 80% of the home's value and another for the remaining 20%. More information about mortgages in Washington DC can be found on the main website.
Budget 2014 was announced by the Swedish government on 9 April 2014. The new budget aims at encouraging education to improve the quality of the workforce
India Enacts Further Sections of the Companies Act, 2013Nair and Co.
With reference to the effectiveness of India?s new Companies Act, 2013, the Ministry of Corporate Affairs (MCA) has further notified 183 sections and schedules. The newly notified sections have come into effect 1 April 2014.
India Announces New Corporate Social Responsibility RulesNair and Co.
India has recently introduced legislation mandating the establishment of Corporate Social Responsibility (CSR) policies for both Indian companies as well as foreign companies operating in India.
United Kingdom – Budget 2014 AnnouncedNair and Co.
The Chancellor of the Exchequer recently presented the Budget for 2014-15. Significant measures include those for investment, savers, retirement and small & medium enterprises (SMEs).
Philippines Introduces New Permit for 9(g) Pre-arranged Employment Visa Appli...Nair and Co.
The Philippines' Department of Labor and Employment (DOLE) has introduced a new permit applicable only for the foreign nationals applying for 9(g) Pre-arranged Employment Visas, all other visa categories are exempted.
Argentina Clarifies Income Tax ProvisionsNair and Co.
Argentina has amended its income tax provisions relating to securities transactions and dividend distributions. Key changes include a 15% tax on gains from selling securities, a 13.5% tax on foreign shareholders' security sales, and a 10% withholding tax on dividends paid to local and foreign shareholders. Clarifications have provided some exemptions to the capital gains tax and guidance on calculating dividend withholding taxes. These amendments and clarifications apply retroactively to transactions since September 2013.
China Eases Tax Exemption for E-commerceNair and Co.
The Chinese Finance Ministry (MOF) and the State Administration of Taxation (SAT) have recently published a joint circular announcing easier eligibility requirements for tax exemptions for e-commerce exporters.
Belgium Introduces Changes to Employment Law RegulationsNair and Co.
Belgian Official Gazette recently published a new employment regulation outlining employment termination notice periods for both blue and white collar employees, effective 1 January 2014.
Germany Updates Minimum Salary Qualifications for EU Blue Card HoldersNair and Co.
The German government has raised the minimum salary qualifications for EU Blue Card holders effective January 1, 2014. The minimum gross salary for new Blue Card holders is now €47,600, up from €46,400 in 2013. The salary threshold for occupations with shortages is €37,128, up from €36,192 in 2013. Companies with operations in Germany should consider the increased minimum salary requirements when assigning EU Blue Card workers to avoid increased business costs.
Australia Increases Super (Superannuation Guarantee), the Required Employer R...Nair and Co.
The Australian government has announced significant changes to the Super regime. Super contributions will eventually increase to 12% by 2020, reports Nair & Co.’s International HR Team.
The Belgian government has decided to reduce the rate of withholding tax on dividends paid by small- and medium-sized enterprise (SME) to 15 or 20 percent, depending on certain conditions (from 25 percent).
Sir Alan Collins to Honour “Magical Team” at The Churchill Club Awards CeremonyNair and Co.
Nair & Co., a global integrated solutions provider helping companies expand internationally, is proud to be named as the sponsor of the Churchill Club “Magical Team” Award. Sir Alan Collins, the firm’s advisor to the Board, will be presenting the award at The Churchills 2013.
South Korea Enacts Tax Revision Bill: Update from International Tax Complianc...Nair and Co.
The South Korean government passed the Tax Revision Bill in January 2013, which brings in significant changes to corporate and individual taxation provisions, for companies and foreign nationals working in the country, says Nair & Co.’s International Tax Consulting Team.
Australian Federal Court Clarifies that Reasonable Performance Management is ...Nair and Co.
In a case which involved Mr. Ramos and Good Samaritan Industries (GSI), Justice Barker has upheld Federal Magistrate Rolf Driver’s earlier verdict which held that reasonable performance management would not be considered as an adverse action.
India Notifies Rules for ‘Voluntary Compliance Encouragement Scheme’: Update ...Nair and Co.
The Indian government has notified the rules to execute an amnesty scheme i.e. “Voluntary Compliance Encouragement Scheme” which was proposed in its February 2013 budget. A onetime reprieve will be given to service tax defaulters, who make a voluntary disclosure.
India passes finance bill for 2013 14- updates from international tax consult...Nair and Co.
The Indian parliament passed the Finance Bill for 2013-14 on April 30th. It clarified that tax residency certificates issued by foreign governments will be accepted as proof of residency for non-resident taxpayers claiming benefits under double taxation avoidance agreements. However, the government reserves the right to request additional documentation. The Finance Bill 2013 had sought to amend a 2012 provision making tax residency certificates not adequate for claiming treaty benefits, causing concern for non-residents. This issue has now been clarified.
Argentina Introduces New Systems for Recording Overseas Payments: Update from...Nair and Co.
The Argentinian government has introduced a new electronic system i.e. the “Single Electronic Window of Foreign Trade” which will enable data transfer and tracking of international trade transactions and commercial information, between different government bodies in Argentina.
L'indice de performance des ports à conteneurs de l'année 2023SPATPortToamasina
Une évaluation comparable de la performance basée sur le temps d'escale des navires
L'objectif de l'ICPP est d'identifier les domaines d'amélioration qui peuvent en fin de compte bénéficier à toutes les parties concernées, des compagnies maritimes aux gouvernements nationaux en passant par les consommateurs. Il est conçu pour servir de point de référence aux principaux acteurs de l'économie mondiale, notamment les autorités et les opérateurs portuaires, les gouvernements nationaux, les organisations supranationales, les agences de développement, les divers intérêts maritimes et d'autres acteurs publics et privés du commerce, de la logistique et des services de la chaîne d'approvisionnement.
Le développement de l'ICPP repose sur le temps total passé par les porte-conteneurs dans les ports, de la manière expliquée dans les sections suivantes du rapport, et comme dans les itérations précédentes de l'ICPP. Cette quatrième itération utilise des données pour l'année civile complète 2023. Elle poursuit le changement introduit l'année dernière en n'incluant que les ports qui ont eu un minimum de 24 escales valides au cours de la période de 12 mois de l'étude. Le nombre de ports inclus dans l'ICPP 2023 est de 405.
Comme dans les éditions précédentes de l'ICPP, la production du classement fait appel à deux approches méthodologiques différentes : une approche administrative, ou technique, une méthodologie pragmatique reflétant les connaissances et le jugement des experts ; et une approche statistique, utilisant l'analyse factorielle (AF), ou plus précisément la factorisation matricielle. L'utilisation de ces deux approches vise à garantir que le classement des performances des ports à conteneurs reflète le plus fidèlement possible les performances réelles des ports, tout en étant statistiquement robuste.
SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN CHART KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART
Easy Earnings Through Refer and Earn Apps Without KYC.pptxFx Lotus
Learn how to make extra money with refer and earn apps that don’t require KYC. Find out the advantages, top apps, and strategies to boost your earnings quickly and easily.
Satta matka fixx jodi panna all market dpboss matka guessing fixx panna jodi kalyan and all market game liss cover now 420 matka office mumbai maharashtra india fixx jodi panna
Call me 9040963354
WhatsApp 9040963354
➒➌➎➏➑➐➋➑➐➐ Satta Matka Dpboss Matka Guessing Indian Matka KALYAN MATKA | MATKA RESULT | KALYAN MATKA TIPS | SATTA MATKA | MATKA.COM | MATKA PANA JODI TODAY | BATTA SATKA | MATKA PATTI JODI NUMBER | MATKA RESULTS | MATKA CHART | MATKA JODI | SATTA COM | FULL RATE GAME | MATKA GAME | MATKA WAPKA | ALL MATKA RESULT LIVE ONLINE | MATKA RESULT | KALYAN MATKA RESULT | DPBOSS MATKA 143 | MAIN MATKA
SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN CHART KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART
DPBOSS | KALYAN MAIN MARKET FAST MATKA RESULT KALYAN MATKA | MATKA RESULT | KALYAN MATKA TIPS | SATTA MATKA | МАТКА СОМ | MATKA PANA JODI TODAY | BATTA SATKA MATKA PATTI JODI NUMBER | MATKA RESULTS | MATKA CHART | MATKA JODI | SATTA COM | FULL RATE GAME | MATKA GAME | MATKA WAPKA | ALL MATKA RESULT LIVE ONLINE | MATKA RESULT | KALYAN MATKA RESULT | DPBOSS MATKA 143 | MAIN MATKA MATKA NUMBER FIX MATKANUMBER FIX SATTAMATKA FIXMATKANUMBER SATTA MATKA ALL SATTA MATKA FREE GAME KALYAN MATKA TIPS KAPIL MATKA GAME SATTA MATKA KALYAN GAME DAILY FREE 4 ANK ALL MARKET PUBLIC SEVA WEBSITE FIX FIX MATKA NUMBER INDIA.S NO1 WEBSITE TTA FIX FIX MATKA GURU INDIA MATKA KALYAN CHART MATKA GUESSING KALYAN FIX OPEN FINAL 3 ANK SATTAMATKA143 GUESSING SATTA BATTA MATKA FIX NUMBER TODAY WAPKA FIX AAPKA FIX FIX FIX FIX SATTA GURU NUMBER SATTA MATKA ΜΑΤΚΑ143 SATTA SATTA SATTA MATKA SATTAMATKA1438 FIX МАТКА MATKA BOSS SATTA LIVE ЗМАТКА 143 FIX FIX FIX KALYAN JODI MATKA KALYAN FIX FIX WAP MATKA BOSS440 SATTA MATKA FIX FIX MATKA NUMBER SATTA MATKA FIXMATKANUMBER FIX MATKA MATKA RESULT FIX MATKA NUMBER FREE DAILY FIX MATKA NUMBER FIX FIX MATKA JODI SATTA MATKA FIX ANK MATKA ANK FIX KALYAN MUMBAI ΜΑΤΚΑ NUMBER
Tired of chasing down expiring contracts and drowning in paperwork? Mastering contract management can significantly enhance your business efficiency and productivity. This guide unveils expert secrets to streamline your contract management process. Learn how to save time, minimize risk, and achieve effortless contract management.
SATTA MATKA SATTA FAST RESULT KALYAN TOP MATKA RESULT KALYAN SATTA MATKA FAST RESULT MILAN RATAN RAJDHANI MAIN BAZAR MATKA FAST TIPS RESULT MATKA CHART JODI CHART PANEL CHART FREE FIX GAME SATTAMATKA ! MATKA MOBI SATTA 143 spboss.in TOP NO1 RESULT FULL RATE MATKA ONLINE GAME PLAY BY APP SPBOSS
High-Quality IPTV Monthly Subscription for $15advik4387
Experience high-quality entertainment with our IPTV monthly subscription for just $15. Access a vast array of live TV channels, movies, and on-demand shows with crystal-clear streaming. Our reliable service ensures smooth, uninterrupted viewing at an unbeatable price. Perfect for those seeking premium content without breaking the bank. Start streaming today!
https://rb.gy/f409dk
Unlocking WhatsApp Marketing with HubSpot: Integrating Messaging into Your Ma...Niswey
50 million companies worldwide leverage WhatsApp as a key marketing channel. You may have considered adding it to your marketing mix, or probably already driving impressive conversions with WhatsApp.
But wait. What happens when you fully integrate your WhatsApp campaigns with HubSpot?
That's exactly what we explored in this session.
We take a look at everything that you need to know in order to deploy effective WhatsApp marketing strategies, and integrate it with your buyer journey in HubSpot. From technical requirements to innovative campaign strategies, to advanced campaign reporting - we discuss all that and more, to leverage WhatsApp for maximum impact. Check out more details about the event here https://events.hubspot.com/events/details/hubspot-new-delhi-presents-unlocking-whatsapp-marketing-with-hubspot-integrating-messaging-into-your-marketing-strategy/
KALYAN CHART SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART
SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN CHART KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART
➒➌➎➏➑➐➋➑➐➐ Satta Matka Dpboss Matka Guessing Indian Matka Satta Matta Matka KALYAN MATKA | MATKA RESULT | KALYAN MATKA TIPS | SATTA MATKA | MATKA.COM | MATKA PANA JODI TODAY | BATTA SATKA | MATKA PATTI JODI NUMBER | MATKA RESULTS | MATKA CHART | MATKA JODI | SATTA COM | FULL RATE GAME | MATKA GAME | MATKA WAPKA | ALL MATKA RESULT LIVE ONLINE | MATKA RESULT | KALYAN MATKA RESULT | DPBOSS MATKA 143 | MAIN MATKA
➒➌➎➏➑➐➋➑➐➐ Satta Matka Dpboss Matka Guessing Indian Matka
KALYAN MATKA | MATKA RESULT | KALYAN MATKA TIPS | SATTA MATKA | MATKA.COM | MATKA PANA JODI TODAY | BATTA SATKA | MATKA PATTI JODI NUMBER | MATKA RESULTS | MATKA CHART | MATKA JODI | SATTA COM | FULL RATE GAME | MATKA GAME | MATKA WAPKA | ALL MATKA RESULT LIVE ONLINE | MATKA RESULT | KALYAN MATKA RESULT | DPBOSS MATKA 143 | MAIN MATKA
SATTA MATKA DPBOSS KALYAN MATKA RESULTS KALYAN CHART KALYAN MATKA MATKA RESULT KALYAN MATKA TIPS SATTA MATKA MATKA COM MATKA PANA JODI TODAY BATTA SATKA MATKA PATTI JODI NUMBER MATKA RESULTS MATKA CHART MATKA JODI SATTA COM INDIA SATTA MATKA MATKA TIPS MATKA WAPKA ALL MATKA RESULT LIVE ONLINE MATKA RESULT KALYAN MATKA RESULT DPBOSS MATKA 143 MAIN MATKA KALYAN MATKA RESULTS KALYAN CHART INDIA MATKA KALYAN SATTA MATKA 420 INDIAN MATKA SATTA KING MATKA FIX JODI FIX FIX FIX SATTA NAMBAR MATKA INDIA SATTA BATTA
➒➌➎➏➑➐➋➑➐➐ Satta Matka Dpboss Matka Guessing Indian Matka Satta Matta Matka KALYAN MATKA | MATKA RESULT | KALYAN MATKA TIPS | SATTA MATKA | MATKA.COM | MATKA PANA JODI TODAY | BATTA SATKA | MATKA PATTI JODI NUMBER | MATKA RESULTS | MATKA CHART | MATKA JODI | SATTA COM | FULL RATE GAME | MATKA GAME | MATKA WAPKA | ALL MATKA RESULT LIVE ONLINE | MATKA RESULT | KALYAN MATKA RESULT | DPBOSS MATKA 143
➒➌➎➏➑➐➋➑➐➐ Satta Matka Dpboss Matka Guessing Indian Matka
KALYAN MATKA | MATKA RESULT | KALYAN MATKA TIPS | SATTA MATKA | MATKA.COM | MATKA PANA JODI TODAY | BATTA SATKA | MATKA PATTI JODI NUMBER | MATKA RESULTS | MATKA CHART | MATKA JODI | SATTA COM | FULL RATE GAME | MATKA GAME | MATKA WAPKA | ALL MATKA RESULT LIVE ONLINE | MATKA RESULT | KALYAN MATKA RESULT | DPBOSS MATKA 143 | MAIN MATKA
➒➌➎➏➑➐➋➑➐➐ Satta Matka Dpboss Matka Guessing Indian Matka
Mexico’s Uphill Struggle
1. Mexico’s Uphill Struggle | Global Finance Page 1 of 3
Home Latest Edition Archives Tools Press Room Job Search Advertising Information Magazine Subscriptions Archives
You are reading
an article from
March 2011
Search Home Archives March 2011 Mexico’s Uphill Struggle
Mexico’s Uphill Struggle
Share this Print E-mail Order Reprint
COUNTRY REPORT: MEXICO
By Paula L. Green
Safeguards put in place after the Tequila Crisis helped Mexico’s banks ride out the recent global turmoil.
Now they’re facing some new challenges.
Bolstered by stronger capital reserves and a growing
demand for credit by companies and consumers, the
Mexican banking sector is geared up to navigate its
way through a delicate operating environment this
year as economic growth slows to nearly 4%.
Though not expected to grow as quickly as financial
institutions in other Latin nations such as Brazil,
Colombia, Peru and Chile that remain less
dependent on the sluggish United States economy,
Mexican banks are operating in an underbanked
market and ready to tap into the beginning of a new
On the spot: Mexico’s president Calderón faces cycle in consumer demand for credit.
tough questions over his efforts to crack down on
drug-related violence “At the time of the financial crisis, demand for
domestic credit, such as credit cards and personal
loans for autos, was going down,” says Alberto
Gomez-Alcala, executive director of economic research and communication at Banco Nacional de Mexico in
Mexico City. Also known as Banamex, the bank is an arm of New York–based Citigroup and had a 20% share of
Mexico’s deposits and 21% portion of total assets at the end of December. “[But] during the last quarter of 2010,
the credit cycle was going up. We expect this to continue as consumers are confident about the economy.”
The positive changes prompted Moody’s Investors Service to boost its outlook for Mexico’s banking system to
stable from negative in December. In its report the US-based ratings agency cited improvement in the Mexican
banking system’s fundamental credit conditions, including a stronger capacity to absorb losses with no signs of
the bubbles or fiscal imbalances that could pose a longer-term risk to banks’ asset quality.
Banorte may have decided to take advantage of this
anticipated upward swing with its plan to acquire the
niche bank Ixe Grupo Financiero last November. The
$1.3 billion deal was approved early last month by
Mexico’s Federal Competition Commission,
strengthening Banorte’s hold on the number-three
slot in Mexican banking. Ixe Grupo Financiero
owned a boutique bank that offered business and
credit card accounts for the wealthy of Mexico City.
BBVA Bancomer, the Mexican unit of Spain’s Bilbao
Vizcaya Argentaria, holds the top banking slot,
followed by Banamex.
The lessons learned from the tequila crisis that
rocked Mexico’s financial world in the mid-1990s
In Guadalajara, Mexico’s computer hub, drug helped temper the impact of the recent global
cartels are battling for control financial crisis. Banking regulators had laid down
tougher regulations to prevent another crisis of that
magnitude, and banks had not entered the mortgage
industry at the same level as their colleagues to the north. Those regulations “proved to be more than adequate
to face the serious turmoil in international financial markets in 2008–2009 without any significant consequences,”
says Nicole Riche de Polognac, executive vice president and president and chief executive officer of Grupo
Financiero Scotiabank in Mexico City. “Most of the criteria to ensure that the banking system properly functions
http://www.gfmag.com/archives/136-march-2011/11104-mexicos-uphill-struggle.html 9/29/2011
2. Mexico’s Uphill Struggle | Global Finance Page 2 of 3
are already in place and running in Mexico.” Archives
You are reading
an article from
Shan Nair, chief executive officer of Nair & Co., a consulting company with offices around the world, agrees.
March 2011
Mexico’s banking sector did not suffer as badly as those in other regions during the financial crisis because of the
country’s more conservative lending laws, investments targeted on exchange-traded and fixed-income products,
rather than the volatile derivatives, and the anti-inflationary monetary policies set by the central bank in the
1990s. “The key for banks now, in this still-volatile climate, is to get the best possible returns in the current low-
grade investment environments by choosing the most appropriate and low-risk investment vehicles,” Nair adds.
Heading for Steady Growth
Long driven by export growth fueled over the past two decades by the low tariffs granted through the North
American Free Trade Agreement, Mexico’s economy is not going to experience the 5% growth it logged last
year, much less the 7.5% or 8.5% uptick that Brazil and Peru, respectively, posted in 2010. That will undoubtedly
shade the banking sector’s prospects. “The outlook [for Mexican banking] is tricky,” says Celina Vansetti-
Hutchins, a senior vice president at Moody’s in New York City who heads the agency’s team of bank analysts for
Latin America. “We don’t see lending rain or shine.” Many large Mexican companies, she adds, typically do not
rely on domestic banks for loans but turn instead to their suppliers or the international capital markets to obtain
financing at more affordable rates. And although midsize companies need loans, the lack of transparency that
frequently surrounds their financial statements prompts corporate bankers to tread carefully in this market.
“The downside of lending to the midsize market is that there are not always financial statements,” says Gomez-
Alcala, referring to the locally owned Mexican firms with about 100 employees. The recent growth of private
credit bureaus that investigate the credit-worthiness of these potential clients is helping to open up the market,
though.
Hilaire Damiron, chief executive officer and director general of Grupo Willis Mexico, part of the global risk
management firm Willis, sees this change as part of the retrenching that is under way in the Mexican business
environment. As he sees it, these are changes the country and its businesses have to make in order to progress
and compete in a global market. “I’m seeing changes that were happening in Brazil 10 years ago,” says Damiron,
who worked in Brazil for about a dozen years before moving to Mexico two years ago. Damiron sees
administrative burdens as one of the problems multinationals face when doing business in Mexico. “Some
companies just give up,” he adds.
The sharp upturn in violence over the past year in the north and west of Mexico, related to the federal
government’s crackdown on the cartels that control the drug trade, is another issue now on the radar screen of
companies considering investment. Two years ago, for example, Monterrey, the country’s industrial hub, was one
of the country’s safest cities. Now drug cartels are battling for control there and in Guadalajara, the country’s
technology hub. The sustained nature of the violence and its escalation in the past year have some company
executives worried.
“Companies are wondering about the future. What will be their return on investment in 2015, for example?” he
says. “It’s not only killings of people with ties to the drug cartels or political connections that put them on the
wrong side of the perpetrators. Kidnappings and armed car thefts are up and extortion of companies is up. “A
company executive may even receive a call or letter saying that they will start killing his employees if he doesn’t
pay up.” says Damiron, adding that extortionists are not that sophisticated and frequently target the companies
that manufacture the well-known brands lining supermarket shelves.
“You can turn off the lights, and then you have no risk,” adds Damiron. “Or you can develop a contingency plan.”
Willis, for example, has a security company based in Miami that is staffed with security experts culled from the
military. They can help design plans to manage the safe entry and exit of a company’s employees and make the
company’s premises as secure as possible.
In a report issued in January, FitchRatings noted that the escalation in drug-related violence was concentrated in
about five states and largely related to the drug cartels. But its spread to Monterrey, one of the country’s
wealthiest cities, filled with the headquarters of textile, food processing, construction and beverage manufacturing
companies, has exacerbated the international public perception of violence spreading throughout Mexico.
Mexican government officials were upset by recent US State Department warnings about the violence in the
northern states, believing that they could crimp the dollars spent by students traveling to resort areas such as
Cancun during their spring break this year. Cancun, located on the Yucatan peninsula between the Caribbean
Sea and the Gulf of Mexico, is about a thousand miles from the northern border city of Monterrey.
Shelley Shetty, head of Latin American sovereign ratings for Fitch, said the violence could reduce the country’s
economic momentum if it becomes sustained and affects broader confidence in the economy. It is difficult to
gauge whether the reduction in economic growth anticipated for 2011 was caused in any part by the perception
of violence, Shetty says. It might simply be a consequence of the US’s sluggish growth.
"Violence is a negative factor for
economic activity, particularly for
the banking industry"
http://www.gfmag.com/archives/136-march-2011/11104-mexicos-uphill-struggle.html 9/29/2011