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Everything you need to know

July 1, 2020

This institution has filed for bankruptcy, but not because of the current situation. Here we tell you why.

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Everything you need to knowEverything you need to know

This story originally appeared on high level

By: Francisco Muciño, Editor-in-Chief, High Level.

On June 30, 2020, the Ministry of Finance and Public Lending (SHCP), along with the National Banking and Securities Commission (CNBV), announced that the liquidation process would begin from Famsa Sparkasse (BAF) and revocation of your operating license.

Banco Ahorro Famsa is part of Famsa Group, which announced last week that it would adopt US restructuring and bankruptcy avoidance laws due to the effects of the corona virus economic crisis.

However, The disappearance of your banking unit has nothing to do with bankruptcy or your creditor protection processYes, but on irregularities identified by the authorities. We’ll explain it to you.

Photo: Famsa via Google Maps.

The revocation of your license is due to risky management, which is characterized by the issuing of credits to related parties the group above the legal limits and illegal records of such operations.

Loans to individuals or group companies are legal, but must not exceed a certain limit that threatens the bank’s capital level.

From early 2019, the CNBV notified Banco Famsa of these irregularities and asked them to correct them. Between August and September of the same year, the bank’s shareholders took a number of measures, such as: B. Capital contributions and liquidation of related party transactions by transfer of land and property transferred by shareholders.

However, the authority noted that these measures were not sufficient to return the bank’s capital. It was therefore decided at the end of June this year to revoke the bank’s license and its liquidation.

Photo: Depositphotos.com

Will this affect the country’s banking system?

With the disappearance of the Banco Ahorro Famsa (BAF) there is no systemic risk since it was a small institution compared to the large banks operating in the country.

“It is expected that the resolution of the BAF situation will not have a significant impact on the rest of the financial system, since interbank engagements are low and the vast majority of depositors are covered by all deposits with a deposit guarantee. of the IPAB in terms of current legislation, ”said the SHCP.

What happens to customers’ money?

The deposits of Banco Famsa’s 580,000 774 customers are protected by the Institute for the Protection of Bank Savings (IPAB).

Customers of this institution can pick up their resources from the IPAB, go to their website or call (55) 7100 0000 to answer their questions.

The resources that IPAB uses to protect savers do not come from taxpayers, but come from the monthly contributions of several banking institutions.

Is it now safe to invest my savings in a bank?

With the exception of this case, the majority of several banking institutions in Mexico meet the capitalization level. If you want to keep or invest your savings with one of these banks, you must know these basic concepts, which can be read in the following note: How to invest in banks and know the interest rates they give.