Who are the Deposit Insurance Beneficiaries?
In Mexico’s banking sector, approximately 117 million individuals hold accounts. Of these, only 0.2%, or around 200,000 account holders, have deposits exceeding the coverage limit set by the Instituto para la Protección al Ahorro Bancario (IPAB).
Deposit Insurance Coverage
The deposit insurance covers up to 400,000 Units of Investment (Udis), which currently equate to over 3.3 million pesos per account holder and bank.
This means that if an individual’s savings in a single bank account reach this amount, their funds are safeguarded by the deposit insurance. In case of any issues with the bank, such as financial troubles leading to liquidation, these funds are protected.
However, for those with deposits exceeding 3.3 million pesos, the insurance only covers the specified amount. Any additional funds may be recovered after the liquidation process, which can take years and does not guarantee full repayment.
Current Situation: Uncertainty Among CIBanco and Intercam Customers
Following recent allegations by the U.S. Department of the Treasury that CIBanco, Intercam, and Vector Casa de Bolsa facilitated money laundering operations, the Comisión Nacional Bancaria y de Valores (CNBV) temporarily intervened. This situation has negatively impacted both banks, causing a decline in their credit ratings from Fitch and HR Ratings.
As a result, customers have started moving their funds to other institutions, potentially causing financial strain for CIBanco and Intercam.
Distribution of Deposit Amounts
According to IPAB data from a recent report, the majority of bank account holders have relatively low balances.
- 66.8 million individuals, or 57.2% of account holders, had balances of up to 100 Udis (approximately 834 pesos) by the end of 2024.
- 24.4 million individuals, or 20.9%, had balances of up to 1,000 Udis (around 8,304 pesos).
- 14.2 million individuals, or 12.2%, had balances of up to 5,000 Udis (approximately 41,705 pesos).
- 4.1 million individuals, or 3.6%, had balances of up to 10,000 Udis (around 83,409 pesos).
- 5.3 million individuals, or 4.5%, had balances of up to 50,000 Udis (approximately 417,045 pesos).
- 1.7 million individuals, or 1.4%, had balances of up to 400,000 Udis (around 3.3 million pesos).
IPAB’s Track Record
Over its 25-year history, the IPAB has promptly paid out to more than 134,000 account holders from seven financial institutions declared in resolution, totaling 37,852 billion pesos—covering 99.3% of the total deposit amount.
Recent cases include Banco Bicentenario (2014), Banco Ahorro Famsa (2020), and Accendo (2021).
Key Questions and Answers
- What is the deposit insurance limit in Mexico? The deposit insurance covers up to 400,000 Units of Investment (Udis), equivalent to over 3.3 million pesos per account holder and bank.
- Who are the deposit insurance beneficiaries? Approximately 0.2%, or around 200,000 account holders, have deposits exceeding the coverage limit.
- What happens if a bank faces financial difficulties? Deposit insurance safeguards funds up to the coverage limit. Any additional funds may be recovered after liquidation, but this process can take years and does not guarantee full repayment.
- What is the distribution of deposit amounts in Mexico? The majority of bank account holders have relatively low balances, with most individuals holding less than 100 Udis (approximately 834 pesos).
- What is the IPAB’s track record? The IPAB has successfully paid out to more than 134,000 account holders from seven financial institutions declared in resolution, covering 99.3% of the total deposit amount.
