Who are the Depositors with Larger Amounts?
In Mexico’s banking system, which comprises approximately 117 million depositors, only about 0.2% or around 200,000 individuals hold amounts exceeding the deposit insurance coverage administered by the Instituto para la Protección al Ahorro Bancario (IPAB).
Deposit Insurance Coverage
The deposit insurance covers the equivalent of 400,000 Units of Investment (Udis), which currently amounts to over 3.3 million pesos per depositor and per bank.
Implications for Depositors
Should a bank encounter difficulties, including potential liquidation, depositors with amounts up to the insured limit of 3.3 million pesos have their funds protected by the deposit insurance.
However, depositors with amounts surpassing this limit can only recover the insured amount. Any additional funds would depend on the liquidation process, which could take years and does not guarantee full repayment.
Current Situation with CIBanco and Intercam
Following recent allegations by the U.S. Department of the Treasury regarding money laundering operations at CIBanco, Intercam, and Vector Casa de Bolsa, the Mexican National Banking and Securities Commission (CNBV) temporarily intervened.
This situation has negatively impacted both banks, leading to lower credit ratings from Fitch and HR Ratings. Additionally, clients have started moving their funds to other institutions, potentially causing financial strain.
Distribution of Deposit Amounts
- 66.8 million depositors, or 57.2% of the total, held amounts up to 100 Udis (approximately 834 pesos) as of the end of 2024.
- 24.4 million depositors, or 20.9%, held amounts up to 1,000 Udis (around 8,300 pesos).
- 14.2 million depositors, or 12.2%, held amounts up to 5,000 Udis (approximately 41,705 pesos).
- 4.1 million depositors, or 3.6%, held amounts up to 10,000 Udis (around 83,409 pesos).
- 5.3 million depositors, or 4.5%, held amounts up to 50,000 Udis (approximately 417,045 pesos).
- 1.7 million depositors, or 1.4%, held amounts 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 depositors from seven financial institutions declared in resolution, totaling 37,852 billion pesos and covering 99.3% of the total covered deposits.
Recent cases include Banco Bicentenario (2014), Banco Ahorro Famsa (2020), and Accendo (2021).
Key Questions and Answers
- Who are the depositors with larger amounts? Approximately 0.2% of Mexico’s 117 million depositors, or around 200,000 individuals, hold amounts exceeding the deposit insurance coverage.
- What does the deposit insurance cover? The deposit insurance covers the equivalent of 400,000 Units of Investment (Udis), which is over 3.3 million pesos per depositor and per bank.
- What happens if a bank faces difficulties? Depositors with amounts up to the insured limit of 3.3 million pesos have their funds protected by the deposit insurance. Those with larger amounts can only recover the insured amount, depending on the liquidation process.
- What is the current situation with CIBanco and Intercam? Following allegations of money laundering, both banks have experienced lower credit ratings and depositors moving funds to other institutions, potentially causing financial strain.
