Introduction
Starting next year, Mexican banks will no longer be able to deduct contributions they regularly make to the Instituto para la Protección al Ahorro Bancario (IPAB) from their taxes, according to a proposal in the 2026 Fiscal Law. This move is expected to recover around 10,000 million pesos (approximately $450,000 USD) annually.
Background and Context
The announcement was made by Claudia Sheinbaum Pardo, the President of Mexico, during her morning press conference. She explained that this measure is part of the 2026 Economic Package, which will be presented on Monday. The president reminded the public about the bank debt originating from the early 1990s, which was initially private but later became public and continues to be paid.
Sheinbaum highlighted that a small portion of the IPAB contributions comes from banks, which are currently tax-deductible. However, she emphasized that the majority of IPAB contributions come from ordinary Mexican citizens. During Enrique Peña Nieto’s administration, banks were allowed to invest in bonds, but a minor portion of their contribution was tax-deductible. This practice will end starting the following year.
IPAB’s Role and Bank Contributions
The IPAB manages the deposit insurance, ensuring users’ savings in banking up to 400,000 Unidades de Inversión (Udis), currently valued at nearly 3.4 million pesos per person, in case of financial difficulties faced by a financial institution. Since 1995, the IPAB has also assumed financial obligations from support programs implemented for the banking system.
Between 1999 and 2024, the IPAB received nearly 388,000 million pesos from bank contributions, with an average real growth of 3.88% per year. In 2024 alone, the IPAB received a historical amount of 35,074 million pesos from banks due to increased banking capture, marking a real annual growth of 4.6% compared to 2023.
In the first quarter of 2025, banks contributed almost 9,490 million pesos to the IPAB. BBVA, Banorte, and Santander—Mexico’s three largest banks—contributed approximately 2,182 million, 1,268 million, and 1,153 million pesos, respectively, accounting for nearly half of the sector’s contributions in the first quarter of the current year.
Approximately a quarter of bank contributions, after covering administrative and operational expenses, goes to the Fondo de Protección al Ahorro Bancario (FPAB), which aims to safeguard people’s bank deposits in case of financial difficulties faced by any institution. By the end of 2024, the FPAB held a historical balance of 106,294 million pesos.
IPAB’s Debt
According to the IPAB’s latest annual report, although the IPAB’s debt has decreased as a percentage of the Gross Domestic Product (GDP)—2.88% in 2024 compared to 10.8% in 1999—it still amounted to around one trillion pesos (approximately $45 billion USD) by the end of the previous year.
The report states that the IPAB finances its remaining debt through three primary sources: bank contributions, federal tax transfers from the Federal Government’s Program of Support to Bank Depositors (PAAB) in Ramo 34, and recovery amounts.
2026 Economic Package Details
General Criteria for Economic Policy: This section outlines the government’s expectations for the economy in the coming year, including GDP, deficit, oil prices, and inflation.
Federal Revenue Law Initiative: The government details the expected revenue in this section. For 2026, the deductibility of the Fondo Bancario de Protección al Ahorro (Fobaproa) debt will be eliminated.
Federal Expenditure Budget Project: This document details how public funds will be spent.
Miscellaneous Fiscal Matters: This section comprises modifications and additions to tax regulations. An increase in Value-Added Tax (VAT) on sugary beverages is anticipated.
Customs Law Reform Initiative: This proposal aims to increase tax revenue at Mexico’s customs.
Key Questions and Answers
- What is the IPAB? The Instituto para la Protección al Ahorro Bancario (IPAB) is responsible for managing deposit insurance, ensuring users’ savings in banking up to a certain limit in case of financial difficulties faced by a financial institution.
- Why are bank contributions to the IPAB being taxed? The Mexican government aims to recover around 10,000 million pesos annually by eliminating the tax deduction for bank contributions to the IPAB.
- How much do banks contribute to the IPAB? Between 1999 and 2024, banks contributed nearly 388,000 million pesos to the IPAB. In the first quarter of 2025, they contributed almost 9,490 million pesos.
- What is the IPAB’s debt? As of the end of the previous year, the IPAB’s debt amounted to around one trillion pesos (approximately $45 billion USD).
- What is the 2026 Economic Package? The 2026 Economic Package includes the General Criteria for Economic Policy, the Federal Revenue Law Initiative, the Federal Expenditure Budget Project, Miscellaneous Fiscal Matters, and a Customs Law Reform Initiative.
