Since Q108, we have described numerically the banking business
environment for each of the countries surveyed by BMI. We do this
through our Commercial Banking Business Environment Rating (CBBER), a
measure that ensures we capture the latest quantitative information
available. It also ensures consistency across all countries and between
the inputs to the CBBER and the Insurance Business Environment Rating,
which is likewise now a feature of our insurance reports.
Like the Business Environment Ratings calculated by BMI for all the other industries on which it reports, the CBBER takes into account the limits of potential returns and the risks to the realisation of those returns. It is weighted 70% to the former and 30% to the latter. The evaluation of the ‘Limits of potential returns’ includes market elements that are specific to the banking industry of the country in question and elements that relate to that country in general.
Within the 70% of the CBBER that takes into account the ‘Limits of potential returns’, the market elements have a 60% weighting and the country elements have a 40% weighting. The evaluation of the ‘Risks to realisation of returns’ also includes banking elements and country elemens (specifically, BMI’s assessment of long-term country risk). However, within the 30% of the CBBER that take into account the risks, these elements are weighted 40% and 60%, respectively.
Further details on how we calculate the CBBER are provided at the end of this report. In general, though, three aspects need to be borne in mind in interpreting the CBBERs. The first is that the market elements of the ‘Limits of potential returns’ are by far the most heavily weighted of the four elements. They account for 60% of 70% (or 42%) of the overall CBBER. Second, if the market elements are significantly higher than the country elements of the ‘Limits of potential returns’, it usually implies that the banking sector is (very) large and/or developed relative to the general wealth, stability and financial infrastructure in the country.
Conversely, if the market elements are significantly lower than the country elements, it usually means that the banking sector is small and/or underdeveloped relative to the general wealth, stability and financial infrastructure in the country. Third, within the ‘Risks to the realisation of returns’ category, the market elements (ie: how regulations affect the development of the sector, how regulations affect competition within it, and Moody’s Investor Services’ ratings for local currency deposits) can be markedly different from BMI’s long-term risk rating.
Table of Contents
Like the Business Environment Ratings calculated by BMI for all the other industries on which it reports, the CBBER takes into account the limits of potential returns and the risks to the realisation of those returns. It is weighted 70% to the former and 30% to the latter. The evaluation of the ‘Limits of potential returns’ includes market elements that are specific to the banking industry of the country in question and elements that relate to that country in general.
Within the 70% of the CBBER that takes into account the ‘Limits of potential returns’, the market elements have a 60% weighting and the country elements have a 40% weighting. The evaluation of the ‘Risks to realisation of returns’ also includes banking elements and country elemens (specifically, BMI’s assessment of long-term country risk). However, within the 30% of the CBBER that take into account the risks, these elements are weighted 40% and 60%, respectively.
Further details on how we calculate the CBBER are provided at the end of this report. In general, though, three aspects need to be borne in mind in interpreting the CBBERs. The first is that the market elements of the ‘Limits of potential returns’ are by far the most heavily weighted of the four elements. They account for 60% of 70% (or 42%) of the overall CBBER. Second, if the market elements are significantly higher than the country elements of the ‘Limits of potential returns’, it usually implies that the banking sector is (very) large and/or developed relative to the general wealth, stability and financial infrastructure in the country.
Conversely, if the market elements are significantly lower than the country elements, it usually means that the banking sector is small and/or underdeveloped relative to the general wealth, stability and financial infrastructure in the country. Third, within the ‘Risks to the realisation of returns’ category, the market elements (ie: how regulations affect the development of the sector, how regulations affect competition within it, and Moody’s Investor Services’ ratings for local currency deposits) can be markedly different from BMI’s long-term risk rating.
| Mexico Commercial Banking Report Q3 2012 |
Published: June 2012 No. of Pages: 60 Price: US $ 1175
Table of Contents
Executive Summary . 5
SWOT Analysis . 7
Mexico Commercial Banking SWOT .. 7
Mexico Political SWOT.. 7
Mexico Economic SWOT ... 8
Mexico Business Environment SWOT 9
Business Environment Outlook 10
Commercial Banking Business Environment Rating . 10
Commercial Banking Business Environment Rating Methodology ... 11
Global Commercial Banking Outlook ... 13
Regional Outlooks .. 21
Colombian Banks Still Our Favourite ... 21
Regional Banking Sector Outlook 26
Latin America Banking Sector Forecast Overview – Q3 2012 .. 26
Mexico Banking Sector Outlook ... 30
Strong Growth Expected For Banking Sector ... 30
Economic Outlook .. 35
Competitive Landscape . 38
Market Structure ... 38
Protagonists . 38
Definition Of The Commercial Banking Universe . 38
List Of Banks 39
Company Profiles ... 42
Banamex .. 42
HSBC Mexico .. 45
Banco Santander .. 46
Banorte 47
Inbursa . 49
Scotiabank Inverlat .. 52
Banco del Bajío ... 53
IXE ... 54
BMI Banking Sector Methodology 55
Commercial Bank Business Environment Rating .. 57
SWOT Analysis . 7
Mexico Commercial Banking SWOT .. 7
Mexico Political SWOT.. 7
Mexico Economic SWOT ... 8
Mexico Business Environment SWOT 9
Business Environment Outlook 10
Commercial Banking Business Environment Rating . 10
Commercial Banking Business Environment Rating Methodology ... 11
Global Commercial Banking Outlook ... 13
Regional Outlooks .. 21
Colombian Banks Still Our Favourite ... 21
Regional Banking Sector Outlook 26
Latin America Banking Sector Forecast Overview – Q3 2012 .. 26
Mexico Banking Sector Outlook ... 30
Strong Growth Expected For Banking Sector ... 30
Economic Outlook .. 35
Competitive Landscape . 38
Market Structure ... 38
Protagonists . 38
Definition Of The Commercial Banking Universe . 38
List Of Banks 39
Company Profiles ... 42
Banamex .. 42
HSBC Mexico .. 45
Banco Santander .. 46
Banorte 47
Inbursa . 49
Scotiabank Inverlat .. 52
Banco del Bajío ... 53
IXE ... 54
BMI Banking Sector Methodology 55
Commercial Bank Business Environment Rating .. 57
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