Mexico's Engagement with the Standard-Setting Bodies and the Implications for Financial Inclusion

This case study highlights the experience of Mexico in implementing international standards in the financial sector and its interaction with the topic of financial inclusion. The study draws on a questionnaire completed by the relevant regulatory authorities as well as meetings with each of them.

Mexico had engaged with standard-setting bodies (SSBs) such as Financial Action Task Force, Basel Committee in Banking Supervision, Committee on Payment and Settlement Systems, International Association of Deposit Insurers, and International Association of Insurance Supervisors. Following its engagement with SSBs, suggestions were made by the supervisory authorities to illustrate potential needs at the country level for SSB dialogue, information, and guidance. Lessons include:

• Applying principles of proportionality, Mexico has been able to adjust regulatory requirements based on an assessment of the risks that are implicit in different circumstances;
• Regulators have been concerned with the need to take a flexible approach to regulate deposit-taking institutions, specifically informal, semi-formal, and alternative providers of financial services;
• Authorities consider that greater public awareness increases financial inclusion, and helps protect public confidence in the financial system. This resulted in the creation of an independent public institution to address the issues of awareness and financial education.