Context and Relevance of Sofipos
Sociedades Financieras Populares (Sofipos) are financial entities in Mexico that play a crucial role in promoting financial inclusion, particularly in underserved regions. They are smaller than traditional banks but offer essential financial services to individuals and small businesses.
Lucía Buenrostro, Vice President of Regulatory Policy at the Comisión Nacional Bancaria y de Valores (CNBV), emphasized that recent regulatory updates aim to strengthen Sofipos, not punish them. This comes as the CNBV has published various regulatory updates and new policies throughout 2025, including the implementation of the IFRS9 accounting standard in April 2024.
IFRS9 and its Impact
The IFRS9 accounting standard introduces more flexible accounting criteria for Sofipos, encourages risk diversification in their financial operations, and raises the allowed credit-to-capital percentages for lending. These changes aim to bolster Sofipos’ stability and growth.
Strengthening Sofipos through Regulation
Buenrostro clarified that regulatory updates are designed to enhance Sofipos’ prudence while providing them with tools to facilitate business activities, such as increasing lending limits.
“We want you to grow with solid foundations, be healthy, and continue helping expand financial inclusion and driving regional economic growth,” she stated.
Alignment with Plan México
These regulatory measures align with the objectives of Plan México, a strategy to bolster business development across the country. The plan specifically targets micro, small, and medium-sized enterprises (MSEs) in development zones, known as “polos del bienestar.”
“Plan México strongly supports MSEs nationwide, considering specific factors in development zones. From our position at the CNBV, we aim to collaborate with federal government planning,” Buenrostro explained.
Adjustments to Credit Limits
Recent adjustments to lending limits, effective since July, expanded the credit margins Sofipos can offer. The financing limit for individuals increased from 3% to 7% of the Sofipo’s net capital per credit to a maximum of 10%. For legal entities, the financing limit rose from 7% to 15% of net capital.
Risk Identification and Management
Buenrostro highlighted that the regulation now includes a methodology for better risk identification. The goal is to help Sofipos recognize potential concentration risks, both direct and indirect, when dealing with the same economic debtor.
Encouraging Increased Credit Lending
Despite their presence in the market, Sofipos have a smaller share of credit lending compared to other institutions like multiple banks.
“When businesses are asked with whom they would seek credit, most respond with a bank. Although the sector is known, Sofipos are not yet an immediate or primary credit option. However, when asked if they would consider applying for credit, over half of micro-businesses respond affirmatively, indicating a significant opportunity,” Buenrostro pointed out.
Key Questions and Answers
- What is the purpose of recent regulatory updates for Sofipos? The updates aim to strengthen Sofipos, not punish them, by providing solid foundations for growth and offering tools to facilitate business activities.
- What is the IFRS9 accounting standard, and how does it impact Sofipos? The IFRS9 standard introduces more flexible accounting criteria, encourages risk diversification, and raises credit-to-capital percentages for lending, enhancing Sofipos’ stability and growth.
- How do these regulatory measures align with Plan México? These measures support micro, small, and medium-sized enterprises (MSEs) nationwide, focusing on development zones known as “polos del bienestar,” collaborating with federal government planning.
- What recent adjustments have been made to credit limits for Sofipos? Credit limits for individuals increased from 3% to 7% of net capital per credit to a maximum of 10%, while legal entities’ limits rose from 7% to 15% of net capital.
- How do these regulatory updates help Sofipos manage risks? The regulation now includes a methodology for better risk identification, helping Sofipos recognize potential concentration risks when dealing with the same economic debtor.
- Why is it important for Sofipos to increase their credit lending? Despite their market presence, Sofipos have a smaller share of credit lending compared to other institutions. Increasing lending can tap into the significant opportunity presented by micro-businesses seeking credit.
