Thursday , March 30 2023

Pitch says the legislation to cut fees for Mexican banks is negative. American economy


Mexico City .- Fitch Ratings, a credit rating agency, said the proposal to limit certain bank fees could have a negative impact on the outlook for the Bank of Mexico, but stressed whether the legislation would be approved or unclear.

Pitch mentioned the problem the day after the election of Andrés Manuel Lopez Obrador, the Allna party, who proposed withdrawing certain bank fees from clients in the Senate.

"Pitch believes that if the initiative is approved, it can lower the profitability of the Bank of Mexico, which is an important source for the yen," the rating agency said.

Lopez Obrador will take office on December 1, and the second Latin American economy will be the first time a left-leaning party can lead.

Peach has gained an average of 18 percent of the Bank's total operating profits over the past five years and net interest income still accounts for the majority of its total income.

Because of relevance, this interest rate has provided banks with a sound diversification of income sources and has supported the continuous creation of profits even in periods of economic stress and past low interest rates. Qualifying

Fitch also believes that the approval of this proposal may have a negative impact on intermediary and medium-term financial intermediation and Mexico inclusion.

"We can block current and new bankers, and negatively impact financial product supply and conditions," he added.

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