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Mexican Banks and Foreign Finance pp 33–63Cite as

Palgrave Macmillan

Mexican Banks Go Abroad

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Abstract

Like their counterparts in advanced industrial countries, leading Mexican banks increasingly expanded their international financial activities during the 1970s. Between 1972 and 1974, the three largest banks of the country participated in the creation of London-based consortium banks, giving the first step into the Euromarkets. This chapter explores these early years in the international expansion of Mexican banks with special focus on the domestic and external factors underpinning their decision to go abroad. As partners of the consortium, Mexican banks learned a great deal about international finance and sovereign lending and gained experience for more direct involvement afterward.

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Notes

  1. 1.

    See Luis Anaya Merchant, Colapso y reforma la integración del sistema bancario en el México revolucionario 1913–1932 (Zacatecas, 2002); Gustavo del Angel and Carlos Marichal, ‘Poder y crisis: historiografía reciente del crédito y la banca en México, siglos XIX y XX’, Historia Mexicana LII (2003), 677–724.

  2. 2.

    On the origins and history of Banco de Mexico, see Eduardo Turrent Diaz, Historia del Banco de México (Mexico City, 2015); Ernesto Fernández Hurtado (Ed.), Cincuenta Años de Banca Central: Ensayos Conmemorativos, 1925–1975 (Mexico City, 1976).

  3. 3.

    Gustavo del Angel, ‘Paradoxes of Financial Development: The Construction of the Mexican Banking System, 1941–1982’, Unpublished PhD diss., Stanford University, 2002, 63–85.

  4. 4.

    Ibid., 86–110.

  5. 5.

    On the relation between business groups and banks, see Gustavo del Angel, ‘The Nexus Between Business Groups and Banks: Mexico, 1932–1982’, Business History 58 (2016), 111–28; Ruber Chavarin Rodriguez (Ed.), Banca, grupos económicos y gobierno corporativo en México (Mexico City, 2010); Nora Hamilton, México: los límites de la autonomía del Estado (Mexico City, 1983).

  6. 6.

    Banco Nacional de Mexico (2004). Banco Nacional de México: su historia, 1884–2004. Leonor Ludlow, ‘La formación del Banco Nacional de México: aspectos institucionales y sociales,’ in Leonor Ludlow and Carlos Marichal (Eds.), La Banca en México, 1820–1920 (Mexico City, 1998), 142–80.

  7. 7.

    Gustavo del Angel, BBVA-Bancomer. 75 años de historia (Mexico City, 2007).

  8. 8.

    Chavarin Rodriguez, Banca, 33–55.

  9. 9.

    Del Angel, ‘Paradoxes’, 88–92.

  10. 10.

    Ibid., 152–201.

  11. 11.

    Edmundo Sánchez Aguilar, ‘The International Activities of U.S. Commercial Banks: A Case Study: Mexico’, Unpublished PhD diss., Harvard University, 1973; Del Angel, ‘Paradoxes’, 139–48.

  12. 12.

    Sylvia Maxfield, Governing Capital: International Finance and Mexican Politics (New York, 1990), 98.

  13. 13.

    See, in particular, José M. Quijano, México: estado y banca privada (Mexico City, 1987), 170–80, and ‘El financiamiento al sector industrial: diagnóstico y propuesta de política’, Investigación Económica 43 (1984), 137–97; Edgar Ortiz, ‘La banca privada en México: formación de capital y efectos de la inflación-devaluación’, Comercio exterior 31 (1981), 27–38.

  14. 14.

    María E. Cardero, José M. Quijano, and José L. Manzo, ‘Cambios recientes en la organización bancaria y el caso de México,’ in José M. Quijano (Ed.), La banca: pasado y presente (Mexico City, 1983), 161–220.

  15. 15.

    Quijano, Estado y banca, 177.

  16. 16.

    Edward Buffie and Allen Sanginés-Krause, ‘Mexico 1958–86: From Stabilizing Development to the Debt Crisis,’ in Jeffrey D. Sachs (Ed.), Developing Country Debt and the World Economy (Chicago, 1989), 141–68.

  17. 17.

    Banco de Mexico, 1972 Annual Report, Table 20, 73.

  18. 18.

    Banamex archive, Libro No. 2 de Actas de la Comisión Ejecutiva, August 11, 1971 Meeting.

  19. 19.

    Banco de Mexico archive, Acta No. 2406, February 1974.

  20. 20.

    Carlos Bazdresch and Santiago Levy, ‘Populism and Economic Policy in Mexico, 1970–1982,’ in Rudiger Dornbusch and Sebastian Edwards, The Macroeconomics of Populism in Latin America (Chicago, 1991), 223–62.

  21. 21.

    See, for instance, Banco de Mexico archive, Acta No. 2410, October 1974.

  22. 22.

    Banco de Mexico archive, Acta No. 2422, April 30, 1976.

  23. 23.

    Banamex archive, Libro No. 2 de Actas de la Comisión Ejecutiva, August 11, 1971 Meeting.

  24. 24.

    Banamex archive, Libro No. 2 de Actas de la Comisión Ejecutiva, November 3, 1971 Meeting.

  25. 25.

    See, for example, Enrique Cárdenas Sánchez, La política económica en México, 1950–1994 (Mexico City, 1996), and La hacienda pública y la política económica 1929–1958 (Mexico City, 1994); Rafael Izquierdo, Política hacendaria del desarrollo estabilizador, 1958–70 (Mexico City, 1995).

  26. 26.

    Luis Bértola and José A. Ocampo, The Economic Development of Latin America Since Independence (London, 2012).

  27. 27.

    Bazdresch and Levy, ‘Populism and Economic Policy’, 237–46.

  28. 28.

    Ibid.

  29. 29.

    Buffie and Sanginés-Krause, ‘Mexico 1958–86’, 146.

  30. 30.

    Quijano, Estado y banca, 143–52.

  31. 31.

    Banamex archive, Libro No. 5 de Actas de la Comisión Ejecutiva, August 29, 1973 Meeting.

  32. 32.

    Banco de Mexico, Annual Reports (several issues).

  33. 33.

    Quijano, Estado y banca, 143–52.

  34. 34.

    Roberto Gutierrez R., ‘El endeudamiento del sector privado de México. Expansión y negociación’, Comercio exterior, 36 (1986), 337–43.

  35. 35.

    Rosario Green, Lecciones de la deuda externa de México, de 1973 a 1997: de abundancias y escaseces (Mexico City, 1996), Table I.12, 42. See also Romeo Flores Caballero and María de los A. Moreno, ‘El endeudamiento externo de México, 1970–1974’, El Trimestre Económico 43 (1976), 805–17.

  36. 36.

    See Secretaria de Hacienda y Crédito Público, Deuda Externa Pública Mexicana (Mexico City, 1988).

  37. 37.

    Banamex archive, Libro No. 3 de Actas de la Comisión Ejecutiva, February 9, 1972 Meeting.

  38. 38.

    Banamex archive, Libro No. 2 de Actas de la Comisión Ejecutiva, September 22, 1971 Meeting; Sergio Negrete Cárdenas, ‘Mexican Debt Crises: A New Approach to Their Genesis and Resolution’, Unpublished PhD diss., University of Essex, 1999, Table B14, 361.

  39. 39.

    Banamex archive, Libro No. 3 de Actas de la Comisión Ejecutiva, September 22, 1971 Meeting.

  40. 40.

    Banamex archive, Libro No. 3 de Actas de la Comisión Ejecutiva, February 9, 1972 Meeting.

  41. 41.

    Ibid.

  42. 42.

    Banamex archive, Libro No. 5 de Actas de la Comisión Ejecutiva, June 20, 1973 Meeting.

  43. 43.

    Banamex archive, Libro No. 3 de Actas de la Comisión Ejecutiva, February 9, 1972 Meeting.

  44. 44.

    Banamex archive, Libro No. 3 de Actas de la Comisión Ejecutiva, August 9, 1972 Meeting.

  45. 45.

    Francisco Borja Martínez, ‘Desarrollo del derecho bancario mexicano (1968–1977),’ in Jurídica. Anuario del Departamento de Derecho de La Universidad Iberoamericana, Tomo I (1978), 414–37, esp. 431–34.

  46. 46.

    Graciela L. Kaminsky and Sergio L. Schmukler, ‘Short-Run Pain, Long-Run Gain: Financial Liberalization and Stock Market Cycles’, Review of Finance 12 (2003), 253–92.

  47. 47.

    See, for instance, The Ottawa Citizen, April 8, 1974, 11.

  48. 48.

    Banamex archive, Libro No. 6 de Actas de la Comisión Ejecutiva, April 17, 1974 Meeting.

  49. 49.

    Banamex archive, Libro No. 10 de Actas de la Comisión Ejecutiva, January 5, 1977 Meeting.

  50. 50.

    ‘Intermex Group’, International Banking: A Survey. The Economist, March 4, 1978, 45.

  51. 51.

    Richard Roberts, Take Your Partners: Orion, the Consortium Banks and the Transformation of the Euromarkets (London, 2001), 265–66.

  52. 52.

    Ibid., 252–53.

  53. 53.

    Quijano, Estado y banca, 243–49.

  54. 54.

    Negrete Cárdenas, ‘Mexican Debt Crises’, Table B17, 400–4.

  55. 55.

    Paul Kershaw, ‘Averting a Global Financial Crisis: The US, the IMF, and the Mexican Debt Crisis of 1976’, The International History Review 22 (2018), 292–314.

  56. 56.

    Banamex archive, Libro No. 10 de Actas de la Comisión Ejecutiva, September 27, 1977 Meeting.

  57. 57.

    Ibid.

  58. 58.

    Banco de Mexico, 1977 Annual Report, 45; Banco de Mexico archive, Acta No. 2428, January 1977.

  59. 59.

    Banco de Mexico archive, Acta No. 2432, July 1977.

  60. 60.

    Del Angel, ‘Paradoxes’, Table 2.12, 57.

  61. 61.

    Negrete Cárdenas, ‘Mexican Debt Crises’, 209–15.

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  1. St Hilda’s College, University of Oxford, Oxford, UK

    Sebastian Alvarez

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Alvarez, S. (2019). Mexican Banks Go Abroad. In: Mexican Banks and Foreign Finance. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-15440-0_2

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  • DOI: https://doi.org/10.1007/978-3-030-15440-0_2

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