Grupo Financiero Banamex
Encyclopedia
Grupo Financiero Banamex S.A. de C.V. has its origins and is the owner of Banco Nacional de México or Banamex, Mexico
's second largest bank behind BBVA Bancomer. The Banamex Financial Group was purchased by Citigroup
in August 2001 for $12.5 billion USD. It continues to operate as a Citigroup subsidiary.
Seguros Banamex (Insurance):
Afore Banamex (Pension Funds):
Accival - Acciones y Valores de México (Brokerage House):
Grupo Financiero Banamex has presence in the main towns and cities of all the states of Mexico.
Banamex was formed on June 2, 1884 from the merger of two banks, Banco Nacional Mexicano and Banco Mercantil Mexicano, two banks that had operated since the beginning of 1882. The newly founded bank had branches in Mérida, Veracruz
, Puebla
, Guanajuato
and San Luis Potosi
, and opened a branch in Guadalajara.
In 1916, General Pancho Villa
’s revolution interrupted the bank’s role as banknote issuer for the Porfirio Diaz
regime.
The bank was reorganized in 1926, becoming a financing bank and establishing the first agency of a Latin American bank in New York
.
Banamex gradually introduced several financial product innovations to the Mexican market including savings accounts (in 1929), personal credit lines (in 1958), credit cards (in 1968), and ATM banking (in 1972).
In 1981, the California Commerce Bank was acquired by Banamex.
In the midst of a severe economic crisis (1982), President Jose Lopez Portillo
announced a major devaluation of the peso and nationalized all private banks in Mexico. For the next nine years Banamex operated as a government owned national credit association.
In 1991, Banamex was reprivatized and it established Grupo Financiero Banamex–Accival with the investment bank Acciones y Valores de México (Accival).
For the next four years Banamex and the rest of the Mexican private banks presided over an unprecedented expansion of private credit in Mexico. This expansion occurred in an environment characterized by: i) the lack of a credit culture at the newly privatized banks, which had been bought at rich multiples by individuals and organizations without lending experience, and ii) lax oversight by regulatory authorities, which led in some instances to the occurrence of irregular transactions (such as related party transactions).
The result of this aggressive expansion of credit was to strain the bank's balance sheet (loan portfolio quality ratios and capitalization
ratios). The December 1994 macro-devaluation of the Mexican Pesos (see the December Mistake) and the ensuing significant increase in domestic interest rates coupled with a dramatic economic recession, caused Banamex's and much of the rest of the privatized banks to essentially become insolvent.
In order to avoid the potentially catastrophic effects of generalized bank bankruptcies, the Ernesto Zedillo
administration decides to rescue the troubled banks through a government fund (Instituto de Protección al Ahorro Bancario or IPAB, later called Fondo Bancario de Protección al Ahorro or Fobaproa
). IPAB enticed the banks' shareholders to inject fresh equity into the banks by pledging to buy from the banks non-performing loans in a two to one (or in some cases greater) ratio with respect to the newly injected fresh capital in exchange for a long-dated government note with capitalized interest.
Banamex eventually sold $_ worth of non-performing loans to IPAB, and its shareholders injected $_ of fresh equity. The combination of these measures coupled with a recovery of the Mexican economy helped clean-up the bank's balance sheet.
From 1997 to 2001 Roberto Hernández Ramírez
was the CEO. In 1997 Afore Banamex was created to tap into the newly created private pension fund market.
On August 6, 2001, Citigroup Inc. acquired Grupo Financiero Banamex-Accival for US$12.5 billion, which became Grupo Financiero Banamex. This was the largest-ever U.S.-Mexico corporate merger. Grupo Financiero Banamex's operations were integrated with Citibank's relatively small existing Mexico business under the Banamex brand name. Manuel Medina Mora current CEO of Latin America.
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
's second largest bank behind BBVA Bancomer. The Banamex Financial Group was purchased by Citigroup
Citigroup
Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...
in August 2001 for $12.5 billion USD. It continues to operate as a Citigroup subsidiary.
Statistics
Banco Nacional de Mexico (Bank):- 1,700 Branches
- 28,759 Branch Employees
- 4,492 ATMs
- 7.9 million Credit Cards
- 2.6 million Checking Accounts
- 20.52% of the Assets in the Mexican Banking System
Seguros Banamex (Insurance):
- 5th Place among Mexican Insurers
Afore Banamex (Pension Funds):
- 1st in Pension Funds
- Over 4 million strong in affiliates
Accival - Acciones y Valores de México (Brokerage House):
- Top Brokerage of the country
- 16% of the assets
Grupo Financiero Banamex has presence in the main towns and cities of all the states of Mexico.
History
Veracruz
Veracruz, formally Veracruz de Ignacio de la Llave officially Estado Libre y Soberano de Veracruz de Ignacio de la Llave , is one of the 31 states that, along with the Federal District, comprise the 32 federative entities of Mexico. It is divided in 212 municipalities and its capital city is...
, Puebla
Puebla
Puebla officially Estado Libre y Soberano de Puebla is one of the 31 states which, with the Federal District, comprise the 32 Federal Entities of Mexico. It is divided in 217 municipalities and its capital city is Puebla....
, Guanajuato
Guanajuato
Guanajuato officially Estado Libre y Soberano de Guanajuato is one of the 31 states which, with the Federal District, comprise the 32 Federal Entities of Mexico. It is divided in 46 municipalities and its capital city is Guanajuato....
and San Luis Potosi
San Luis Potosí
San Luis Potosí officially Estado Libre y Soberano de San Luis Potosí is one of the 31 states which, with the Federal District, comprise the 32 Federal Entities of Mexico. It is divided in 58 municipalities and its capital city is San Luis Potosí....
, and opened a branch in Guadalajara.
In 1916, General Pancho Villa
Pancho Villa
José Doroteo Arango Arámbula – better known by his pseudonym Francisco Villa or its hypocorism Pancho Villa – was one of the most prominent Mexican Revolutionary generals....
’s revolution interrupted the bank’s role as banknote issuer for the Porfirio Diaz
Porfirio Díaz
José de la Cruz Porfirio Díaz Mori was a Mexican-American War volunteer and French intervention hero, an accomplished general and the President of Mexico continuously from 1876 to 1911, with the exception of a brief term in 1876 when he left Juan N...
regime.
The bank was reorganized in 1926, becoming a financing bank and establishing the first agency of a Latin American bank in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
.
Banamex gradually introduced several financial product innovations to the Mexican market including savings accounts (in 1929), personal credit lines (in 1958), credit cards (in 1968), and ATM banking (in 1972).
In 1981, the California Commerce Bank was acquired by Banamex.
In the midst of a severe economic crisis (1982), President Jose Lopez Portillo
José López Portillo
José López Portillo y Pacheco was the President of Mexico from 1976 to 1982.Born in Mexico City, López Portillo studied Law at the National Autonomous University of Mexico before beginning his political career with the Institutional Revolutionary Party in 1959.He held several positions in the...
announced a major devaluation of the peso and nationalized all private banks in Mexico. For the next nine years Banamex operated as a government owned national credit association.
In 1991, Banamex was reprivatized and it established Grupo Financiero Banamex–Accival with the investment bank Acciones y Valores de México (Accival).
For the next four years Banamex and the rest of the Mexican private banks presided over an unprecedented expansion of private credit in Mexico. This expansion occurred in an environment characterized by: i) the lack of a credit culture at the newly privatized banks, which had been bought at rich multiples by individuals and organizations without lending experience, and ii) lax oversight by regulatory authorities, which led in some instances to the occurrence of irregular transactions (such as related party transactions).
The result of this aggressive expansion of credit was to strain the bank's balance sheet (loan portfolio quality ratios and capitalization
Capitalization
Capitalization is writing a word with its first letter as a majuscule and the remaining letters in minuscules . This of course only applies to those writing systems which have a case distinction...
ratios). The December 1994 macro-devaluation of the Mexican Pesos (see the December Mistake) and the ensuing significant increase in domestic interest rates coupled with a dramatic economic recession, caused Banamex's and much of the rest of the privatized banks to essentially become insolvent.
In order to avoid the potentially catastrophic effects of generalized bank bankruptcies, the Ernesto Zedillo
Ernesto Zedillo
Ernesto Zedillo Ponce de León is a Mexican economist and politician. He served as President of Mexico from December 1, 1994 to November 30, 2000, as the last of the uninterrupted seventy year line of Mexican presidents from the Institutional Revolutionary Party...
administration decides to rescue the troubled banks through a government fund (Instituto de Protección al Ahorro Bancario or IPAB, later called Fondo Bancario de Protección al Ahorro or Fobaproa
Fobaproa
FOBAPROA is a contingencies fund created in Mexico in 1990 to attempt to resolve liquidity problems of the banking system in that country. The Fobaproa was applied in 1995 during the economic crisis to protect all Mexican banks from going bankrupt, and thus destroying the Mexican Economy...
). IPAB enticed the banks' shareholders to inject fresh equity into the banks by pledging to buy from the banks non-performing loans in a two to one (or in some cases greater) ratio with respect to the newly injected fresh capital in exchange for a long-dated government note with capitalized interest.
Banamex eventually sold $_ worth of non-performing loans to IPAB, and its shareholders injected $_ of fresh equity. The combination of these measures coupled with a recovery of the Mexican economy helped clean-up the bank's balance sheet.
From 1997 to 2001 Roberto Hernández Ramírez
Roberto Hernández Ramírez
Roberto Hernández Ramírez is a Mexican businessman. He is a former CEO of Banco Nacional de México , Mexico's second largest bank, just after BBVA Bancomer, from Spain. He is currently a member of the administration board of Citigroup.Chairman of the Board, Banco Nacional de Mexico, S.A...
was the CEO. In 1997 Afore Banamex was created to tap into the newly created private pension fund market.
On August 6, 2001, Citigroup Inc. acquired Grupo Financiero Banamex-Accival for US$12.5 billion, which became Grupo Financiero Banamex. This was the largest-ever U.S.-Mexico corporate merger. Grupo Financiero Banamex's operations were integrated with Citibank's relatively small existing Mexico business under the Banamex brand name. Manuel Medina Mora current CEO of Latin America.
Subsidiaries
The following are subsidiaries of Grupo Financiero Banamex:- Banamex http://www.banamex.com
- Fondos Horizontes Banamex http://www.fondoshorizontes.com & http://www.fondoshorizontes.com.mx
- Brokerage House Accival http://www.accival.com.mx
- AcciTrade http://www.accitrade.com http://www.accitrade.com.mx
- Seguros Banamex http://www.banamex.com
- AeroMexicoAeroméxicoAirways of Mexico, SA de CV , operating as Aeroméxico, is the flag carrier airline of Mexico based in Colonia Cuauhtémoc, Cuauhtémoc, Mexico City. It operates scheduled domestic and international services to North America, South America, Central America and the Caribbean, Europe, and Asia...
http://www.aeromexico.com - Afore Banamex http://www.banamex.com
- Inteligia, joint venture with AccentureAccentureAccenture plc is a global management consulting, technology services and outsourcing company headquartered in Dublin, Republic of Ireland. It is the largest consulting firm in the world and is a Fortune Global 500 company. As of September 2011, the company had more than 236,000 employees across...
to provide software outsourcingOutsourcingOutsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider... - California Bank of Commerce (recently changed its name to Citibank Banamex USA) http://www.ccbusa.com