Background on CAME and its Relevance
CAME, or Sociedad Financiera Popular (Sofipo) CAME, is a significant player in Mexico’s financial sector. As of December 2024, CAME had approximately 1.37 million users, making it the ninth-largest entity in terms of user count within the sector. CAME’s services were previously accessible through the Techcreo CAME application until April 2023, when they ceased operations.
CNBV’s Intervention and Actions Taken
The Mexican National Banking and Securities Commission (CNBV) announced the intervention of CAME due to financial insolvency, following the detection of accounting irregularities and substantial capital loss. This placed CAME in Category 4 of the Capital Adequacy Ratio (Nicap), the lowest level in the scheme, indicating a critical financial insolvency situation.
Decision-Making Process
- The CNBV’s Board of Governors took the decision during a meeting on June 9.
- The intervention aims to halt operations and safeguard the interests of depositors, as per Articles 75 and 78 of the Popular Savings and Credit Law.
Previous Measures and Deterioration of CAME’s Financial Indicators
Since March 2023, the CNBV conducted supervisory visits to CAME, resulting in several preventive measures. However, the deteriorating financial indicators of CAME led to a notification on May 21 regarding the initiation of revocation proceedings for non-compliance with credit and market risk capital requirements.
Protection for Depositors
The CNBV emphasized that depositors’ funds are safeguarded by the Protection Fund, which guarantees up to 25,000 Units of Investment (UDIS) per individual or legal entity, regardless of the number or type of transactions with the intervened entity.
- CAME’s parent company, Sofipo, has communicated through its website since May that one of the actions taken is to pay depositors using this Protection Fund.
Stability of Mexico’s Financial System
Despite CAME’s specific situation, the CNBV assured that Mexico’s financial system remains robust and capable of preserving the stability of the popular savings system. The commission reaffirmed its commitment to protecting users’ savings within the financial system.
Key Questions and Answers
- What is CAME? CAME, or Sociedad Financiera Popular (Sofipo) CAME, is a prominent entity in Mexico’s financial sector with around 1.37 million users as of December 2024.
- Why did the CNBV intervene in CAME? The CNBV intervened due to financial insolvency, accounting irregularities, and substantial capital loss that placed CAME in the lowest category of the Capital Adequacy Ratio (Nicap).
- How are depositors protected? Depositors’ funds are safeguarded by the Protection Fund, which guarantees up to 25,000 Units of Investment (UDIS) per individual or legal entity.
- What is the status of Mexico’s financial system? Despite CAME’s situation, the CNBV affirms that Mexico’s financial system remains strong and capable of preserving stability in the popular savings system.
