Introduction to the IPAB and its Role
The Instituto para la Protección al Ahorro Bancario (IPAB) has been responsible for the liquidation of four banks over the past decade. This article provides context and details about these cases, highlighting their impact on the Mexican banking system.
Recent Cases: CIBanco
CIBanco, a financial institution with over 40 years of history in Mexico, recently closed its doors following accusations from the U.S. Department of the Treasury regarding alleged money laundering operations. Despite having a solid and stable status until early June, the bank agreed to voluntarily revoke its operating authorization due to the negative impact of these accusations on its business. The IPAB assumed liquidator responsibilities on October 10 and initiated payments to CIBanco depositors starting October 13.
Previous Cases: Banco Bicentenario, Banco Ahorro Famsa, and Accendo Banco
Since its establishment, the IPAB has acted as liquidator, intervener, or judicial liquidator for 16 banks. The last four cases occurred within the past ten years.
Banco Bicentenario
Banco Bicentenario, originating from a credit union, faced license revocation due to poor financial management shortly after beginning operations as a bank. The IPAB initiated the liquidation process on July 21, 2014, and judicial liquidation on January 12, 2015. The IPAB successfully concluded Bicentenario’s liquidation judicial process, resulting in the bank’s official extinction due to total asset disposal.
Banco Ahorro Famsa
Following license revocation in July 2020, the IPAB started the liquidation process for Banco Ahorro Famsa and judicial liquidation in November of the same year.
Accendo Banco
After license revocation in September 2021, the IPAB initiated liquidation and judicial liquidation processes for Accendo Banco. Both cases remain subject to various lawsuits, including merchandise, real estate, civil, labor, and administrative matters.
Impact on Depositors
The liquidation of these banks has had minimal impact on the Mexican banking system, as they represented a small percentage of the overall system due to their size. Most depositors in Banco Bicentenario, Banco Ahorro Famsa, and Accendo Banco have already received their funds based on the deposit insurance guaranteeing up to 400,000 Unidades de Inversión (Udis), currently exceeding 3.4 million pesos per depositor.
CIBanco depositors, whose payments began on October 13, also have their savings almost fully guaranteed. Those with amounts exceeding this limit must wait for the respective liquidation processes to conclude to determine additional recoveries.
Key Questions and Answers
- What is the IPAB? The Instituto para la Protección al Ahorro Bancario (IPAB) is a Mexican institution responsible for the liquidation of banks when their licenses are revoked.
- Which banks has the IPAB liquidated? The IPAB has liquidated Banco Bicentenario, Banco Ahorro Famsa, Accendo Banco, and most recently, CIBanco.
- How have these liquidations affected depositors? Most depositors in the liquidated banks have received their funds through deposit insurance. CIBanco depositors are also nearly fully guaranteed, while those with amounts exceeding the insurance limit must await further liquidation process outcomes.
- What challenges do the liquidation processes face? The IPAB faces ongoing lawsuits in various matters, including merchandise, real estate, civil, labor, and administrative cases.
