The Technical Process of Bank Privatization in Mexico

Abstract

The paper describes the process of Mexican bank privatization that took place in 1991. It is shown that the Mexican government was very careful to ensure due procedure and transparency through the entire bank privatization process. However, lack of legal and regulatory framework and lax oversight shadowed the success of the technical process. Hence, the financial system in Mexico had to deal with a banking crisis, shortly after their privatization, in 1994.