U.S. investment bank and financial services corporation Citigroup has announced the pending sale of its Mexican retail banking business, Banamex, which reportedly has assets of around US$70 billion.
Some analysts immediately voiced fears that Mexico may be starting a new spate of capital flight. In a blog on the naked capitalism website, Nick Corbishly noted that recent data published by the Bank of Mexico shows that foreign investors cashed out $US2.63 billion from Mexican bonds in 2021.
However, Mexico’s Finance Ministry was more upbeat: “Citigroup’s decision does not reflect a lack of confidence in Mexico,” it said in a statement.
Grupo Santander, Scotiabank and BVVA Bancomer, all foreign owned banking corporations with an established presence in Mexico, are potential buyers, reports suggest.
Mexico’s President Andrés Manuel Lopéz Obrador has said he would prefer Banamex to be in Mexican hands, and has welcomed the interest of Ricardo Salinas, the entrepreneur who owns Banco Azteca, a bank that caters primarily to low- and medium-income clients, offering consumer credit for goods, personal loans, small business loans, credit cards, mortgages and payroll systems. Salinas also owns TV Azteca, Mexico’s second largest mass media company after Televisa, and the Elektra department store chain.
Other potential Mexican buyers could include Carlos Slim, the owner of Inbursa, and Carlos Hank González of Banorte.