Bank Of Mexico Research Articles

Information Technology Expenditure and Industry Performance: The Case of the Mexican Banking Industry

This study examines the relationship of information technology spending to Mexican banking industry performance. Focusing on the industry unit of analysis, this project tests whether or not the productivity paradox was present in the Mexican banking industry for the period 1982 to 1992. Specifically, the project tests the correlation between the industry's information technology spending and three performance measures: profits, return on assets, and return on equity. In 1982, Mexico's banks were nationalized, and remained so up to 1992 when the Mexican government sold them back to private investors. The project's data are for the eighteen banks comprising the industry during this period. The methodology consists of longitudinal correlations of the industry consolidated data over the eleven-year period, as well as graphical analysis of time series. The findings show a positive association between IT expenditure and industry's net profits and return on assets. Hence, the productivity paradox is rejected. The results are contrary other studies at the industry level that support the productivity paradox. Findings indicate significant external effects altering IT investment patterns from economic crises and from bank ownership changes. Lastly the project goes beyond other studies in being the first one to test an entire industry for a given country, and in using an eleven-year data set.

Donation transplants and tissue banking in Mexico.

Knowledge about transplants in Mexico goes back to the Aztec period. Today the need for organ and tissue transplants in Mexico is high; the estimated number is 100,000 patients, but there are only 2 donors per million population, for corneas. The organ, tissue and cell transplantation law which was modified in 2,000, establishes that when a person dies, he will be a potential donor of organs and tissues. This new law will give hope to many patients, since it is expected to increase significantly the amount of organs and tissues for transplants. At present Mexico has 178 hospitals that are authorized to carry out organ and tissue transplants, and 53 Tissue Banks.

Distinguished Lecture on Economics in Government: Reflections on Managing Global Integration

The language of public policy is increasingly the language of economics, and sophisticated policy formulation depends to an ever greater extent on an understanding of economic concepts. Over the last six years I have spent at the U.S. Department of the Treasury, I have had the chance to be present when concepts ranging from “superlative price indices” to “multiple equilibrium” to “the liquidity trap” to “dynamic hedging” to “shadow pricing” were discussed with the President of the United States. Where it was once the case that the president’s Council of Economic Advisers waged a lonely battle for “good” economics in the federal government, today first-rate economists staff departments ranging from Treasury to Labor to Commerce to Justice to the Environmental Protection Agency, and they hold line as well as advisory positions. While academic interlopers serving as political appointees (like myself) may get a majority of the attention, a majority of the greater economic literacy of government policy in areas ranging from tax policy to telecommunications policy, from monetary policy to manpower policy, from financial policy to forestry policy, is the result of the steady perseverance of career government economists. As remarkable as the penetration of economics and economists into the American government has been, their penetration into even higher levels of governments around the world is even more notable. A decade ago, Mexican President Zedillo was a practicing monetary economist in the Bank of Mexico. Two recent Italian Prime Ministers—Romano Prodi and Lamberto Dini— have distinguished records as economic thinkers. Lest anyone think all those trained in economics think alike, Russian Prime Minister Primakov holds a doctorate in political economy. There are too many examples to catalogue of economists at the level of finance minister and central bank governor: consider the influence of

Liquidity, Risk, and the Collapse of the Mexican Peso: A Dynamic CGE Interpretation

On December 19th, 1994, Mexico's central bank announced a one-time 13% devaluation of the narrow band within which the peso had been allowed to float. Investors reacted violently, and within 48 hours the attack on reserves forced Mexico to abandon exchange rate management entirely.! The free-floating peso began a slide leaving it 33% lower relative to the dollar by the new year, and 50% lower by the middle of February. This paper argues that the Bank of Mexico's December 19th regime change revealed new information to the market, rationalizing the subsequent attack on reserves.2 Specifically, the regime change announcement contained regarding Mexico's stock of official foreign reserves. Insights borrowed from option pricing theory illustrate that such news leads investors to raise the risk premium assigned to peso-denominated loans. The general equilibrium implications of such a shock are shown to include a sharp and immediate devaluation. The shock is simulated using a multi-sector dynamic computable general equilibrium model of Mexico. Following the devaluation, the model predicts a gradual real revaluation extending over several years. In the short-run, resources shift into export and import-competing sectors (principally Mining and Manufacturing), while the current account moves into surplus and net foreign indebtedness is reduced. In the mediumto long-term, the short-run impact is reversed: non-traded goods production expands and export and import competing sectors contract, leaving Mexico with a smaller volume of outstanding debt and of international trade than would have been the case absent the shock.

Btmex

Term banks of recent creation are characterised by being user-friendly and by providing their users with new features that facilitate the information-retrieval operation, thus making them more efficient. This paper describes BTMEX, the Term Bank of Mexico, as one of these systems. Although it shares with most term banks the storage of the same basic units of information, it offers a wide range of possibilities to retrieve this information, making it one of the most flexible term banks available.

Japanese Banks in Mexico: The Role of Government in Private Decisions

Japanese Banks in Mexico: The Role of Government in Private Decisions

Privatización de la Banca en México

Privatization of Banks in Mexico is the continuation of a process initiated by the government since 1982. Later that year, the number of parastatals was considered close to 1200, including banking. The sale of public companies in Mexico due to the combination of several factors, both internal and external. The neoliberal policy that currently dominates manages the premise that the economy should be aimed at supporting the private capital without restrictions, regardless of their origin. It is thought that capital is able to solve the problems of the societies of our time. Explains why the bank was nationalized due to illicit dealings of a party that formed after nationalization, these maneuvers were not improved 100 percent, and for that reason and because of the global crisis, the viable path He was re-privatize it, but of course, trying to commit the above errors, this without knowing what the value of the bank, several authors have different views in this regard, it is estimated that the value ranges from 15 to 35 million pesos.

Japanese Banks in Mexico: The Role of Government in Private Decisions

Japanese Banks in Mexico: The Role of Government in Private Decisions

The British in the Atacama Desert: The Cultural Bases of Economic Imperialism

In the nineteenth century, the British were popular throughout the west coast of South America as the cultural and economic allies of the ruling elites. Thecriollosof Peru and Chile, who had inherited the colonial social order, looked to France in matters of art and fashion but viewed the British as the providers of commerce and economic progress. They welcomed Irish, Welsh, and English immigrants as merchants, artisans, and prospective grooms. In Peru, the British played a key role in developing the market for guano (the fertilizer composed of bird excrement and the precursor of the nitrate, salitre, trade), and British ships took Chile's copper and wheat to England from the 1840's through the early 1870's. By 1870, the development of the Pacific Steam Navigation Company and the London Bank of Mexico and South America assured the British dominance of the commerce along the west coast.

Guadalupe Victoria and a Personal Loan from the Church in Independent Mexico

Before the establishment of commercial banks in Mexico in the latter half of the nineteenth century, the aspiring merchant or impecunious landowner had few sources from which he could borrow capital. Funds were available within the country but the rich preferred speculation in government bonds and securities to investment in agricultural or industrial enterprises. Financial deals in which enormous interest rates were paid by the government to private individuals became almost a matter of public scandal and were widely condemned by politicians of all parties. The only institution to operate an extensive lending policy was the Roman Catholic Church which, through the offices of its Juzgado de Capellanías, continued after independence its practice of lending money to any person able to provide adequate security for a loan. Although the contractual terms demanded were by no means onerous to the borrower, nevertheless there was much criticism of these fiscal activities by the clergy. The liberals in particular attacked the Church’s control of the land which was a direct consequence of its lending operations. The Church’s defense against these attacks was based firstly on its rights under both civil and canon law, and secondly, on the benefits which the nation’s economy received from the widespread clerical investments. Furthermore, the clergy insisted that they were genuinely interested in utilizing their wealth for the advantage of the people and country as a whole. Hence their funds were invested by way of loans in every kind of industrial and agrarian venture.

Central Banking in Mexico: Monetary Policies and Financial Crises, 1864- 1940.

Central Banking in Mexico: Monetary Policies and Financial Crises, 1864- 1940.

Central Banking in Mexico: Monetary Policies and Financial Crises, 1864–1940. By Virgil M. Bett. (Publication of the Bureau of Business Research, School of Business Administration, University of Michigan. Michigan Business Studies, Vol. XIII, No. 1.) Ann Arbor, Mich.: University of Michigan, 1957. Pp. x, 123.

Central Banking in Mexico: Monetary Policies and Financial Crises, 1864–1940. By Virgil M. Bett. (Publication of the Bureau of Business Research, School of Business Administration, University of Michigan. <i>Michigan Business Studies</i>, Vol. XIII, No. 1.) Ann Arbor, Mich.: University of Michigan, 1957. Pp. x, 123.

Central Banking in Mexico. Monetary Policies and Financial Crises, 1864-1940

Central Banking in Mexico. Monetary Policies and Financial Crises, 1864-1940

Present and Past Banking in Mexico.

Present and Past Banking in Mexico.

Present and Past Banking in Mexico

Present and Past Banking in Mexico

Banking in Mexico

The development of banking in Mexico is one of the most important features of the Mexican economic improvement during the last thirty years. Banking did not make its appearance here as a state institution but as the result of investments of foreign capital, attracted by the discovery of a great field for business, as soon as the country was able to establish peace firmly, after the tremendous struggles which followed the war for independence and lasted until the final triumph of the republican system. In the ten years following the war with France, from 1870 to I880, public credit was of no importance, and the financial relations between Mexico and Europe were practically nil; but during those years the construction of our big railroad systems was pushed very energetically, peace was assured, and the resources of the country became apparent to the eye of foreign money owners, always looking for sound and productive investments. Several French and Mexican business men united to establish