Overview of Payments and Their Significance
In the first quarter of 2025, banks operating in Mexico paid approximately 9,489 million pesos to the Instituto de Protección al Ahorro Bancario (IPAB) for ordinary quotas. This amount is part of the contributions that support the Fondo de Protección al Ahorro Bancario (FPAB), which safeguards the deposits of individuals who entrust their funds to these financial institutions.
Understanding the IPAB and FPAB
The IPAB is an organization under the Mexican Secretaría de Hacienda y Crédito Público (SHCP) responsible for protecting bank depositors. The FPAB, managed by the IPAB, ensures coverage for depositors in case of bank failures or other unforeseen events. The current limit of coverage is equivalent to 400,000 Unidades de Inversión (Udis), which amounts to over 3.3 million pesos per person.
Growth of the FPAB
As of now, the total balance of the FPAB stands at 106,294 million pesos. Since its inception, the fund has grown significantly from 1,098 million pesos, demonstrating an average nominal growth rate of 21.11% per year.
Protection for Depositors
According to the IPAB, these resources are sufficient to protect the covered deposits of 42 banks individually and handle an extreme payment scenario for up to 34 small and medium-sized banks simultaneously. This ensures that nearly 100% (99.83%) of individuals with resources in Mexican banks are covered up to the equivalent of 400,000 Udis.
Historical Contributions in 2024
In 2024, the total amount of quotas collected from banks was 35,074 million pesos, a 4.60% increase from the previous year. This growth is attributed to increased traditional capture by banks over recent years.
From 1999 to 2024, the total amount of quotas collected from banks is close to 388,000 million pesos, with an average real growth rate of 3.88% per year.
Leading Contributors
BBVA México, Banorte, and Santander were the top three contributors to the IPAB in Q1 2025, paying 2,182 million pesos, 1,268 million pesos, and 1,153 million pesos respectively. Following them were Banamex with over 735 million pesos, HSBC with nearly 670 million pesos, Scotiabank with more than 608 million pesos, Inbursa with over 446 million pesos, and Citi (now separate from Banamex) with almost 377 million pesos.
These eight major banks paid nearly 7,470 million pesos to the IPAB for ordinary quotas between January and March 2025. Hey Banco, a newer entrant, is included in the list but contributed minimally to this concept during this period due to its operation start date of February 10, 2025.
IPAB’s Deposit Protection
The IPAB has guaranteed the payment of covered deposits for 134,018 individuals from seven financial institutions whose licenses were revoked. The total amount paid was 37,852 million pesos, covering 99.34% of the protected deposit value.
Key Questions and Answers
- What is the IPAB? The Instituto de Protección al Ahorro Bancario (IPAB) is an organization under the Mexican Secretaría de Hacienda y Crédito Público (SHCP) responsible for protecting bank depositors.
- What does the FPAB do? The Fondo de Protección al Ahorro Bancario (FPAB), managed by the IPAB, ensures coverage for depositors in case of bank failures or other unforeseen events.
- How much does the IPAB cover? The current limit of coverage is equivalent to 400,000 Unidades de Inversión (Udis), which amounts to over 3.3 million pesos per person.
- How has the FPAB grown? The total balance of the FPAB stands at 106,294 million pesos, demonstrating an average nominal growth rate of 21.11% per year since its inception.
- Who are the leading contributors to the IPAB? BBVA México, Banorte, and Santander are the top three contributors to the IPAB, followed by Banamex, HSBC, Scotiabank, Inbursa, and Citi.
