Understanding the Instituto Para la Protección al Ahorro Bancario (IPAB)
The Instituto Para la Protección al Ahorro Bancario (IPAB) is a Mexican financial institution responsible for managing the deposit insurance, ensuring users’ savings up to approximately 3.4 million pesos per person in case of bank failures. Since 1995, the IPAB has also assumed financial obligations from support programs for the banking system. To fulfill these responsibilities, the IPAB receives resources through mandatory contributions from banks, tax transfers, and recovery amounts.
Contributions from Major Banks
Between 1999 and 2024, the IPAB received nearly 388,000 million pesos from bank contributions, growing at an average real rate of 3.88% per year. In 2024 alone, with increased bank captation, the IPAB received a historical amount of 35,074 million pesos from banks, marking a real annual growth of 4.6% compared to 2023.
- BBVA, Banorte, and Santander—Mexico’s three largest banks—contributed approximately 2,182 million, 1,268 million, and 1,153 million pesos, respectively, in the last period, accounting for nearly half of the sector’s total contributions in Q1 2025.
According to the IPAB, about a quarter of bank contributions—after covering administrative and operational expenses—goes to the Fondo de Protección al Ahorro Bancario (FPAB). The FPAB’s purpose is to ensure that people’s bank deposits remain protected if any institution faces financial difficulties.
By the end of 2024, the FPAB had a historical balance of 106,294 million pesos.
IPAB’s Debt and Financing
The IPAB’s debt, as a percentage of the Gross Domestic Product (GDP), has decreased since 1999. In 2024, the proportion was 2.88%, down from 10.8% in 1999. However, the debt amounted to around one trillion pesos by the end of 2024.
The IPAB finances its remaining debt through three primary sources: bank contributions, federal tax transfers from the Programa de Apoyo a Ahorradores de la Banca (PAAB) in Ramo 34, and recovery amounts.
“By efficiently utilizing its own resources and budget, the financial strategy ensures that the IPAB’s debt does not grow in real terms; that is, as the economy grows, the debt represents an increasingly smaller percentage of the GDP,” according to the IPAB.
Key Questions and Answers
- What is the IPAB? The Instituto Para la Protección al Ahorro Bancario (IPAB) is a Mexican institution that manages deposit insurance, ensuring users’ savings up to approximately 3.4 million pesos per person in case of bank failures. It also assumes financial obligations from support programs for the banking system since 1995.
- How does the IPAB finance its operations? The IPAB receives resources through mandatory contributions from banks, tax transfers, and recovery amounts. It also finances its debt through bank contributions, federal tax transfers from the Programa de Apoyo a Ahorradores de la Banca (PAAB) in Ramo 34, and recovery amounts.
- What is the significance of bank contributions? Bank contributions are crucial for the IPAB’s operations, as they cover administrative and operational expenses and fund the Fondo de Protección al Ahorro Bancario (FPAB), which safeguards people’s bank deposits in case of financial difficulties for any institution.
- What is the current state of the IPAB’s debt? Although the IPAB’s debt as a percentage of GDP has decreased since 1999, it amounted to around one trillion pesos by the end of 2024. The IPAB finances its debt through efficient use of resources and a strategic financial approach.
