Meet the Mexican financial system

We often hear people say: go to the bank. Why that term? Do you really know what the main purpose of this type of financial institution? Here:

The purpose of a financial institution is to connect (intermediate) to people who need money (or requiring plaintiffs to pay them money), and those who have it (suppliers, who have accumulated money through his habit of spend less than they earn), that is financing, also fulfills the function of helping the efficient flow of money, this is the payment system.

When individuals or companies have the money to a financial institution (a bank), are looking for two things: One, protect your money (either saving or investing to earn more for performing various operations) and the other to use the institution as a means of payment and control of its operations.

Through a financial system has established a payment system, which consists of:

• Money banknotes and coins in pesos or in other countries as the dollar.
• Documents: Checks, promissory notes, bills of exchange, promissory notes known as credit card vouchers.
• Electronic media: SPEUA Transfers between accounts, utility payments with debit cards, electronic purses.

The Mexican financial system is regulated by the Ministry of Finance and Public Credit, the National Banking and Securities National Commission of Insurance and Finance, the National Savings System for Retirement, the National Commission for Protection and Defense of Users of Financial Services.

The Bank of Mexico is an institution independent of the executive has control efforts particularly in relation to the payments system.

It is important to know different concepts regarding the financial activity of a bank, so I'll mention a few:

• Financial transaction: You make a financial transaction when hiring a financial product or service, are distinguished from commercial operations because they necessarily involve the purchase or sale of a commodity directly, but facilitate access to monetary resources to perform various operations.
• Service: Refers to when the financial institution will provide facilities for you to be traded, usually only involved as an intermediary institution.
• Product: When you and the financial institution signed a contract to perform certain types of operations together, taking responsibility for meeting both parties as indicated in the contract under the conditions specified therein. There are various tools available to a financial institution authorized by the competent authority to conduct financial activity.
• Individual: Refers to human beings like you. When we speak of users refers to people with legal capacity to hire and / or products offered by financial institutions, ie, over 18 years with all the mental and legal, in the case of beneficiaries also can to the case of minors or adults who can not fend for themselves, but they have the right to receive the results of operations or financial services in which they have been designated as beneficiaries.
• Legal entity: It is the union of two or more individuals formed for a common purpose, refers to companies or firms. This is how you call them legally.

HOW IS OUR INTEGRATED FINANCIAL SYSTEM?

Commercial banks or lending institution, or commercial banks: These companies through various products capture, ie, receive money from the public (savers and investors) and place it is, lend it to people or companies need and meet the requirements to be eligible for credit.

Development bank or second-tier bank or development bank: banks are run by the federal government whose purpose is to develop certain sectors (agriculture, auto parts, textiles) address and solve problems of regional or municipal funding or encourage certain activities (export , supplier development, creation of new businesses). They said second-tier support for their programs or lines of funding, made through commercial banks that are primarily to companies or users requesting the loan.

Limited purpose finance company or Sofoles: We call specialized banks because they pay only for one sector (eg construction, automotive) or activity (eg consumption through credit cards), only instead of taking deposits to capture resources need to raise money through the sale of securities or seeking loans.

National Savings and Financial Services: (formerly National Savings Trust). It is an institution (Banking Development) whose purpose is to promote savings, financing and investment, as well as offer financial tools and services among members of the sector. This sector consists of the Savings and Loan Associations which are: Cooperative Savings and Loan and Finance Companies People (before credit unions, solidarity funds, savings and loan, etc.)..

Dr. Luis Nunez Alvarez.

source: economia.com.mx