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Financial system frequently asked questions

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Credit Information Company

  • What is a Credit Information Company?

Credit information companies (CIC) or Credit Bureaus manage databases containing people's credit histories. These databases contain information about credit transactions; for example, whether an individual has been given a credit card, a bank card or any other type of loan and whether or not they paid the balance on time.

CICs gather information on people's credit histories, both from financial entities (banks, sofoles, etc.) and companies (department stores, car financing companies, cellular phone companies, etc.). Their purpose is to sell people's credit history to these entities and companies when authorized to do so. CICs present this information in a standardized way, i.e. in a "Credit Report", which is commonly used along with other information about the person to determine whether or not they are eligible for credit. The credit report can be a key factor in approving or rejecting credit applications.

The Law for Regulating Credit Information Companies is designed to ensure that information contained in each CIC's database is correct, up-to-date and sent to third parties based on the individual's authorization.

 

  • What are Banco de México's powers in relation to protecting people's credit information rights?

The Law for Regulating Credit Information Companies states that Banco de México has the power to issue regulations or provisions regarding the protection of people's credit information rights. Specifically, the law grants Banco de México the power to:

  • Issue general provisions CIC operations and activities must comply with (Art. 12).
  • In particular, issue provisions the CIC must acknowledge when delivering special credit reports to people (Art. 41).
  • Establish the terms under which the CIC must deal with people's claims (Art. 42).
  • Authorize the terms and conditions under which CICs can agree with users to substitute the client's signature based on one of the declarations of will indicated in article 1803 of the Federal Civil Code (Art. 28).
  • Issue general provisions on eliminating loans worth less than one thousand UDIs (Art. 23).

Banco de México cannot handle complaints from private individuals regarding CIC services. However, people can consult the services offered by CICs with the National Commission for the Defense of Users of Financial Services (Condusef), which can also hear their claims if they were not adequately attended by a CIC.

Condusef's contact data are:

National Commission for the Defense of Financial Services' Users

Insurgentes Sur 762, Colonia Del Valle,

Delegación Benito Juárez, C. P. 03100 México, D.F.

Phone number:

5448-7000 (within Mexico City),

01800-714-9869, 01800-716-3859,

01800-717-1767, 01800-717-1768,

01800-717-1771, 01800-717-1773 (toll free from anywhere in Mexico)

e-mail: webmaster@central.condusef.gob.mx

Website: http://www.condusef.gob.mx/

 

  • Which CICs have information about your credit history?

In Mexico there is currently only one CIC called "BC Buró de Crédito". Its contact details are:

BC Buró de Crédito (Customer service center)

Av. Periférico Sur 4349

Plaza Imagen. Local 3

Fraccionamiento Jardines en la Montaña

Delegación Tlalpan

14210 México D.F.

Phone number:

5449-4954 (within Mexico City);

01800-640-7920 (toll free from anywhere in Mexico)

e-mail: buzonbc@burodecredito.com.mx

Website: http://www.burodecredito.com.mx

This page provides all information to request special credit reports.

 

  • Can anyone obtain a copy of their credit report?

No, only financial entities and companies that have been authorized by the persons involved to do so. CICs can only sell credit reports to financial entities and companies with a person's express authorization (signature) stating that they are fully aware of (i) the nature and scope of the information the CIC will sell to those entities and companies; (ii) how the credit reports will be used; and, (iii) that they may undertake periodical consultations of the credit history while they maintain a credit relationship with them.

Likewise, Banco de México, in the eleventh General Rule to which credit information companies and their compiled text users must comply with during the course of their operations and activities, has authorized CICs to sell credit reports to financial entities or companies that wish to offer credit under the premise that they obtain verbal authorization from the individuals involved and that they provide information only they have knowledge of.

 

  • Is there any difference between the special credit report and the credit report received from financial entities and companies?

Yes, when a person requests a credit report it should receive a special credit report. The special credit report includes the commercial name of each of the individual's creditor financial entities and companies as well as the commercial name, telephone and address of the financial entities and commercial companies that have consulted its information over the last 24 months. The credit report that third parties receive does not contain the commercial name of the creditor financial entities and commercial companies or information about consultations made by other entities and companies.

When issuing special credit reports, CICs are not under any obligation to include information related to the credit or risk rating or any other indicator of payment capacity.

 

  • Does a person have the right to obtain a special credit report?

Yes, when requested. Individuals can request a special credit report in the following way: a) from the CICs themselves; b) from financial entities; and, c) from commercial companies that use CICs' services. The report must be clear, complete, accessible, and be self-explanatory or come with attached instructions. CICs must send the requested report within five working days as of the date on which the individual originally requested it.

 

  • Who can you request your special report from?

People can request a special credit report through CICs or financial entities or commercial companies that provide information or undertake consultations with them. Before accepting requests from financial entities or commercial companies they must inform the person that they can obtain their special credit report from CICs at the maximum fees determined by the authority as well as the free telephone number for attention to the public and web page details.

 

  • How can an individual request a special credit report?

Individuals may request their special credit reports from CICs by phone, mail, fax, email or one of their websites, or by going personally to one of their specialized units. If the request is made by phone, mail, fax, email or a web page, the person must provide the following information:

1.- Name and two surnames;

2.- Address (road and number, neighborhood, city, state and zip code);

3.- Individual Registration Number or Taxpayer Number or date of birth;

4.- Indicate whether or not the individual has a credit card and, for one of them, the numbers identifying the account, the lender and the authorized credit limit corresponding to the month before the request was made, and

5.- Indicate whether the individual has used a mortgage loan or a car loan or not, and if so, indicate the lender and contract number for one of them.

If you go personally to a CIC specialized unit, you must provide the information indicated in the paragraph above or sign your request and identify yourself using your voter's ID or current passport and, if you are foreigner, your FM2.

You can also request a special credit report by going personally to the financial entities or commercial companies that provide the information or consult CICs. In this case, you should sign your request and identify yourself using your voter's ID or current passport. You can only request your special credit report by phone or through the web pages of entities or companies when the latter have agreed to the use of electronic ID media, such as electronic signature or the personal ID number (PIN) with the person, and also offer such services.

 

  • How can an individual with a business activity or a corporation request a special credit report?

During the period from August 14, 2002 to January 1, 2003, individuals with a business activity and persons authorized by corporations may obtain a special credit report by going to CIC specialized units. In this case, they must sign their request and provide the following information:

1.- Name;

2.- Copy of the Federal Taxpayers Registration, and

3.- Copy of the individual's voter's ID or current passport. In addition to those documents, corporations should also present a copy of their authority instrument.

As of January 1, 2003, individuals with a business activity and persons authorized by corporations may also request their special credit report by phone, mail, fax, email or through the companies' web page. In these cases, the following information should be provided:

1.- Name;

2.- Tax address (road and number, neighborhood, city, state and zip code);

3.- Federal Taxpayer Number;

4.- As for the loans you have, provide: a) the lender's name, b) the amount, start date or date of the first drawndown, and c) the currency it was granted in.

 

  • How much does it cost to obtain a special credit report?

Obtaining a special credit report for the first time from a CIC as well as any subsequent reports, as long as a period of 12 months has elapsed since the last free report was obtained, is:

Free, as long as you request the report by email, through the CIC's website or at one of the CIC specialized units;

a maximum charge of 9 UDIS if you request the report by fax;

a maximum charge of 27 UDIS when you request the special report be sent to you in a sealed envelope with acknowledgement to the address you have given;

the cost is freely set when the person requests that the CIC send it through a private messenger company.

The maximum amounts credit information companies may charge for special credit reports if the 12 month period between requests has not elapsed are:

A maximum charge of 3 UDIS for sending the special credit report to the email the person has indicated or for delivering the report through the website , as long as the request has been made through the website of credit information companies;

a maximum charge of 12 UDIS for sending the special credit report to the email indicated or delivering the report through the website as long as the request was made by phone, fax, mail or email;

a maximum charge of 12 UDIS for making the special credit report available to the person at the CIC specialized unit or for sending it by fax;

a maximum charge of 30 UDIS for sending it by mail in a sealed envelope with acknowledgment, and

the cost is freely set when the person requests that the CIC send the report through a private messenger company. Financial entities and commercial companies that provide information or consult CICs will freely determine the rates they charge clients for delivering or sending their special credit reports.

 

  • What can the person do if the information in their credit report contains errors or is incomplete?

They should present their claim in writing or through electronic media to a CIC specialized unit, attaching a copy of their special credit report or else a copy of their credit report that the CIC has sent to a financial entity or commercial company, clearly stating the record(s) being disputed as well as copies of documents on which the claim is based. If they do not have such documents, they should explain the situation in writing or use electronic means to present their claim.

CIC are not obliged to process claims related to information contained in their records that has been the subject of previous claims if the CIC, financial entities, and commercial companies adhered to the claim attention procedure as per the regulation.

 

  • Do you incur a cost by requesting that information contained in their credit report be corrected?

CIC must process up to two claims per person each calendar year free of charge. In each claim you can challenge all records considered wrong. The maximum charge for processing additional claims during one calendar year may not exceed the equivalent of 15 UDIS. CICs must disclose the rate to the public through their websites.

 

  • What procedure must CICs, financial entities, and commercial companies follow insofar as attention to claims?

Once the CIC receives the person's claim, it must check whether the errors are attributable to it and immediately correct them. If the errors are not attributable to the CIC, the claim must be sent to the financial entity or commercial company that generated the records the person is challenging five working days after receiving it, and include the legend "Record Disputed" in the records. The legend is not removed until the procedure is complete.

If the financial entity or commercial company accepts the person's challenge in full or in part it must make the corresponding changes in its database immediately. If the financial entity or commercial company only partially accepts the content of the claim or says it is unfounded, its reply to the CIC must include the reasons.

The financial entity or commercial company must deliver its response with respect to the disputed records to the CIC in writing within 60 calendar days as of 2002, 45 calendar days as of 2003, and 30 calendar days as of 2004. If the financial entity or commercial company does not deliver its response to the CIC within the aforementioned timeframes, the CIC must proceed to modify or eliminate the information the person has requested from its database, and must eliminate the legend "Record Disputed" from such records.

The CIC must send the financial entity or commercial company's response to the person within five working days after the CIC has received it if the financial entity or commercial company has partially accepted it or says the claim is unfounded. If the person disagrees with the response it can ask the CIC to include a text no longer than one hundred words in future credit reports stating the reasons why in its opinion the information provided by the financial entity or commercial company is incorrect.

When the claim results in a modification to information contained in the CIC's database it must send a new special credit report to the person free of charge. The CIC must also send the corrected credit report to the commercial companies or financial entities that have had access to it in the past six months.

 

  • What can the person do if the financial entity or company does not correct the errors?

If the content of the claim is not accepted or is only partially accepted, the CIC must send the response of the financial entity or commercial company responsible for the information to the person within five working days after receiving it. If the person disagrees with the response he or she can write a text of no more than 100 words stating why the information provided by the financial entity or commercial company is wrong and also ask the CIC to include it in any future credit reports. The person can also go to the National Commission for the Defense of Users of Financial Services (Condusef), http://www.condusef.gob.mx/ or the courts to lodge a claim.

 

  • Can a financial entity or commercial company ask a CIC to re-include information that has been modified or eliminated due to a previous claim?

Yes, when the financial entity or commercial company sends the CIC the reasons supporting the re-inclusion of the disputed information. The CIC must inform the person of this situation and send the financial entity or commercial company's response within a period of five working days as of the CIC's re-inclusion of the information the person has disputed. In this case, the CIC must send the person a special credit report free of charge.

 

  • How often are the prices of the goods and services used to in the PPI researched?

The general rule is that CICs must retain information on individuals for a period of 7 years beginning as of when: a) the credit is drawn down; b) the ruling waiving payment is implemented; c) the lender no longer has the right to request the ruling's implementation; or d) the lender prescribes recovery of the loan. After the 7-year period has elapsed, CICs must eliminate the information from their databases.

Even so there are exceptions. CICs cannot eliminate from their databases: a) information related to loans with an unpaid balance equal to or higher than 300,000 UDIS or b) when there is a ruling condemning a person for a loan-related crime.

 

Foreign exchange markets

  • How is the peso/US dollar exchange rate determined?

The exchange rate is determined freely in the market without the authority's intervention; that is, under a floating exchange rate regime. The Foreign Exchange Commission, composed of officials from the Ministry of Finance and Banco de México, and which is responsible for Mexico's foreign exchange policy, may entitle Banco de México to carry out operations in the foreign exchange market if the Commission regards it as necessary.

 

  • What type of exchange rate is used to buy or sell US dollars in foreign exchange offices and banks?

The exchange rate used by foreign exchange offices and banks depends on the exchange rate in the interbank market, the amount to be exchanged, and the intermediaries' transaction costs. The greater the competition in the market where US dollars are sold or bought, the lower the transaction costs.

 

  • What type of exchange rate is used to obtain the equivalence for non-US dollar currencies (for example, the euro) in pesos, and how is it calculated?

The US dollar parity against other currencies, for example, the euro, is the amount of US dollars paid for one euro. The peso/euro parity is determined by multiplying the peso/dollar exchange rate by the dollar/euro exchange rate. The exchange rates used for these calculations are published by the different central banks on their web sites, considering that these exchange rates are usually used for wholesale (48-hour) operations. Nevertheless, they can also be obtained from any other well-known source such as the links to currency rate calculators provided at Banco de México's web site.

 

  • Where can the exchange rate be consulted?

There are several sources where the peso/dollar exchange rate can be consulted. The U.S. reference peso/dollar exchange rate is published all banking days from 12:00 p.m. onwards, on Banco de México's web site (www.banxico.org.mx). This same exchange rate is published a day later in the Official Federal Gazette. Historical data on this exchange rate can also be consulted on Banco de México's web site and in its library. Most commercial banks and commercial information systems also publish exchange rates on their web sites.

 

  • Why are there different peso/US dollar exchange rates?

Different types of exchange rates are published because in Mexico the exchange rate is determined freely in the market and it fluctuates every day (and during the day) depending on supply and demand. Another reason is that since there are different types of operations in terms of market, amounts, and maturity, depending on transaction costs, different exchange rates are used.

For example, the Fix exchange rate is a reference used to settle operations the second working day following the settlement date, and is published every day on Banco de México's web site. The Fix exchange rate is an average of wholesale market quotes obtained from electronic trade platforms and other electronic sources that are representative of the foreign exchange market. These quotes are collected three times a day, between 9:00 am and 12:00 pm, and the resulting average is the exchange rate known as the Fix.

In contrast, the 48-hour exchange rate (also published by Banco de México on its web site) is a sample of the prevailing values or wholesale transactions (and also used to settle operations the second banking working day following the settlement date) among banks, brokerage houses, foreign exchange offices, and individuals.

Finally, the exchange rates offered by foreign exchange offices can differ significantly from the 48-hour and the Fix exchange rates because foreign exchange offices carry out retail operations and their prices depend on both their transaction costs and the level of competition among them.

 

  • What is the definition of the Fix, 24-hour interbank exchange rate, 48-hour interbank exchange rate, and the spot, and what are the differences among them?

The Fix is a peso/dollar reference exchange rate. This exchange rate is calculated by Banco de México's Domestic Exchange Office and published every day from 12:00 p.m. onwards on Banco de México's web page. The same information is published one working day later in the Official Federal Gazette.

The Fix exchange rate is an average of wholesale market quotes obtained from electronic trade platforms and other electronic sources that are representative of the foreign exchange market. These quotes are collected three times a day, between 9:00 am and 12:00 pm, and the resulting average is the exchange rate known as Fix.

It is possible to agree to dollar obligations in Mexico at any reference exchange rate. However the Fix is used by many participants to set a reference for their transactions.

The interbank exchange rate is that which corresponds to operations among financial intermediaries, generally commercial banks, as opposed to what an individual (for example) can obtain at a retail bank's window. The difference in the levels of these rates is explained by the difference in transaction costs.

The terms "24-hour," "48-hour," and "spot" refer to settlement periods. The interbank dollar market operates mostly on a 48-hour settlement schedule. For example, if an operation is agreed upon today, the charges and credits to the accounts of the buyer and seller are effective in 48 hours. The same is true for the 24-hour and same-day transactions. These three maturities: same day, 24-hour (overnight), and 48-hour, are known collectively as the cash market. The term "spot" is used to refer to the most common settlement period, which in the case of the peso/dollar is 48 hours.

For more information, please consult the following link (available only in Spanish): Disposiciones publicadas en el Diario Oficial de la Federación el 22 de marzo de 1996.

 

  • What does it mean to settle obligations in foreign currency in Mexico?

It means that holders of obligations denominated in dollars that must be paid in Mexico, are required to accept pesos when the debtor chooses not to deliver the payment in foreign currency.

 

  • Is there any place where I can obtain information on the expected exchange rate?

Banco de México does not make exchange rate projections. However, on a monthly basis, on its web page (www.banxico.org.mx), it publishes private analysts' expectations for different variables (available only in Spanish) (Resultados mensuales de la encuesta sobre las expectativas de los especialistas en economía del sector privado sobre las principales variables económicas).

 

  • Where can I obtain information on exchange rates for other currencies relative to the peso?

Banco de México's website provides links to currency rate calculators that allow users to look up the peso exchange rate against other currencies.

On the other hand, every month Banco de México publishes different exchange rates for the peso on its web page using the last working day's quotes in the wholesale market.

 

  • How does Banco de México implement dollar sales in the exchange market?

Except for extraordinary situations, Banco de México carries out dollar sales via auctions in which only domestic banks may participate. The specific characteristics of these auctions (time, amounts, type of auction, allotments, etc.) have changed depending on the type of mechanism used. The different kinds of mechanisms are described in the following link: Banco de Mexico’s foreign exchange market operations. Banco de México publishes the exchange rates at which the auctions are carried out on its web page. The Foreign Exchange Commission can also give Banco de México the authority to carry out direct dollar sales if it considers this necessary. The characteristics of these direct interventions are found at: Direct operations. Banco de México's activity in the foreign exchange market is always carried out on terms that are congruent with wholesale market conditions.

 

  • Who makes the decision to implement Foreign Exchange Market Operations?

In foreign exchange rate matters, Banco de México acts in accordance with the guidelines established by the Foreign Exchange Commission, which is made up of the Secretary and Undersecretary of Finance and Public Credit, another Undersecretary of the aforementioned Ministry appointed by the corresponding Secretary, the Governor of Banco de México and two more members of the Board of Governors designated by the Governor. The members of the Foreign Exchange Commission do not have alternates.

 

  • Is it possible for an individual or a company to participate in Banco de México's US Dollar auctions?

Only banks can participate in Banco de México’s auctions. Individuals and companies are not entitled to operate with Banco de México. In case an individual or a company needs to buy dollars it should conduct its operations with banks or currency exchange offices.

 

  • Which Banks have been sold US dollars at Banco de México's auctions?

The names of banks that have bought US dollars at Banco de México's auctions are part of the information that is protected by bank secrecy (article 117 of the Credit Institutions' law). For this reason, Banco de México classifies such information as reserved and is not entitled to publish it.

 

  • What does Banco de México do with the pesos obtained from the US dollar auctions?

The pesos obtained from the sales of US dollars into the market are sterilized through open market operations. It is worth noting that sterilization refers to the series of measures aimed at compensating liquidity excesses and shortfalls (deficits) which have short and long-term impacts on commercial banks' current accounts at the central bank.

 

  • How was the Swap between Banco de México and the FED carried out?

Under this mechanism, the Federal Reserve deposited US dollars to Banco de México in exchange for an equivalent deposit in pesos by Banco de México to the Federal Reserve. When the agreement expired, both currency flows were reversed. The US dollar resources obtained by Banco de México were used to carry out credit auctions among domestic banks and were used only once on an auction that took place on April 21, 2009 (more information).

 

  • What have been the main sources of international reserves accumulations?

The main sources for international reserves have been US dollars sales by Pemex and the Federal Government to Banco de México.

 

Securities market

  • What is Banco de México's role in the sale of debt securities?

Banco de México is the financial agent for the Federal Government and the Institute for the Protection of Savings in the Banking System (IPAB). It is responsible for placing their debt securities (Cetes, Bonos, Bondes, and Udibonos in the case of the Federal Government, and BPAs at differing maturities in the case of IPAB) by implementing auctions among different financial intermediaries. Auctions are generally held on Tuesdays for government securities and Wednesdays for IPAB securities.

 

  • Can anyone participate directly in a primary auction for Cetes?

Cetes can be purchased directly in primary auctions only by financial institutions (domestic credit institutions and brokerage firms, domestic mutual funds and Afores). For small and medium size investors interested in purchasing Cetes or any other government securities (Bondes, Bonos and Udibonos), the Federal Government launched in June 2010 the CETES Directo program. Through this mechanism, individuals can buy and sell government securities with lower costs for management and transaction fees. For more information visit http://www.cetesdirecto.com/.

 


  • What does it mean to issue (or implement the issuance of a instrument) and what is the meaning of the "settlement" of a instrument?

The issuance of an instrument refers to its registry as a debt security, including its various features such as face value, maturity, type of yield, etc. In case of publicly offered securities in Mexican markets, this registry takes place in the National Register of Securities. A debt security that has only been issued does not necessarily generate a payment obligation. This occurs only after the instrument has been settled or sold to an investor. In this way, the settlement of securities can be implemented at different times, using the same securities. For example: when an issuance of Cetes that matures in 91 days is initially registered, Banco de México announced the issuance of 50 billion pesos of Cetes maturing in 91 days. Assume that in this issuance, 6 billion pesos are auctioned on Tuesday and settled the following Thursday. This means that 44 billion pesos' worth of Cetes were issued but not sold. After 63 days, 28 days will remain for the same issuance to mature, meaning that those securities can be used for another auction and settlement at this maturity. In that case, Banco de México would announce that it auctioned and settled, for example, 4.5 billion pesos' worth of 28-day Cetes, with a total of 39.5 billion pesos issued and not placed with a remaining maturity of 28 days.

 

  • When Cetes are auctioned, when are they placed and when is the settlement date for auctions?

The primary auction of government securities (including Cetes, Bonos, Bondes and Udibonos) is usually carried out every Tuesday. The exchange of securities for money (that is, the settlement) would be carried out on Thursday. In the case of securities issued by IPAB, the auctions are carried out on Wednesdays and settled on Thursdays. In the case of holidays, both auctions and settlements may vary, but the general rule is that government securities auctions are held two business days before their settlement.

 

  • Where can I find technical notes or descriptions of domestic debt instruments?

On Banco de México's website within the Securities Market section, you can find technical information of each domestic instrument issued by the Federal Government (Cetes, Bondes, Fixed-rate bonds, Udibono, etc.)

 

  • Where can I find the legal dispositions for participating in the Government's primary auctions?

On the Regulations section of Banco de México's website (click here for more information – in Spanish only) you can find details of the primary auction process of securities issued by the Federal Government (Cetes, Bonos, Bondes and Udibonos). You can also find the regulation for the settlement of securities through the Debt Syndication Scheme (click here for more information – in Spanish only).

 

  • Who settles UMS bonds (United Mexican States Bonds), and where can I obtain information about them?

UMS bonds are debt instruments issued abroad by the Federal Government and usually denominated in currencies other than the Mexican peso. The placement of these bonds is carried out by commercial banks that act as financial agents of the Federal Government. For more information on these securities, see the Ministry of Finance's Investor's Relations Office web site.

  

  • What is the methodology for calculating the Monetary Regulation Deposit?

Monetary Regulation Deposit is a long-term sterilization instrument that allows Banco de México to modify the banking system's liquidity to ease the guidance of monetary policy. Depending on the circumstances of liquidity, the deposit can be mandatory or voluntary. Banks cannot dispose of it during the term thereof. Banco de México pays interest for the deposits made at market rates.

The Monetary Regulation Deposit amount is prorated based on the participation of each bank's core deposits in total banking system. There are no fixed dates for the establishment of Monetary Regulation Deposits. The amount of deposits is shown in the weekly statements published by Banco de México under the concept of Regulation Deposit.

 

  • What is the definition for the effective overnight rate? What is Banco de México´s operational target?

The effective overnight rate (also known as the funding rate) is that at which banks lend to each other on one-day or overnight maturities. Every day, Banco de México calculates the weighted average funding rate based on each bank's operations. For more information on how this rate is calculated, see the note on its calculation. Since January 21, 2008, Banco de México's Board of Governors has set the level for the overnight interest rate as the operational target.

 

  • What is the Interbank Equilibrium Interest Rate (TIIE)?

The TIIE is a representative rate for all credit operations among banks. Banco de México calculates the TIIE for 28- and 91-day maturities on a daily basis and for 182-day maturities on a weekly basis. Rates are submitted by a representative and random sample of banks. The TIIE is used as a reference for many financial instruments and products, such as credit cards.

 

  • Are there any penalties for banks in case their TIIE rate is different from the one published by Banco de México?

The TIIE is calculated based on all the rates presented by the surveyed banks. When the difference between the highest and lowest bid exceeds a certain range, the two banks that presented these positions must deposit and/or take on credit from Banco de México at its bid rate. Specifically, the commercial bank that presented a lower rate of interest has to generate a deposit at Banco de México while the bank that presented a higher rate must take on credit from Banco de México. There are no penalties if the differences in the prices submitted are greater than the differential established by Banco de México, which publishes daily the list of participating institutions and their positions for the determination of the TIIE. For more information, please visit Title III, Chapter IV, Section I of Circular 3/2012.

 

  • Does the process of determining the TIIE generates any transaction between banks or only with Banco de México?

In the event that during the process of determination of the TIIE, credit and deposit operations are generated, these take place directly with Banco de México. Specifically, the commercial bank who presented a quote at low interest rate has to make a deposit at Banco de México while the commercial bank who presented a quote at high interest rate, receives funding from Banco de México.