Summary
This article aims to have a clearer idea of the financial services of our country, their objective, function and raison d'être of the various sources of financing.
Banks as the main source of financing, provide a wide variety of services to users, among the main ones we find: loans to individuals and companies with business activities, mortgage loans, automobile financing, among others, at more accessible interest rates.
The financial companies and various savings banks also grant loans, generally to individuals without business activity, with the difference that in these the interest rate is higher.
Abstract
This article intends to have a clearer idea of the financial services of our country, its purpose, function and raison d 'être of the various sources of financing.
Banks as the main source of financing, a wide variety of services give users the main find: credits to individuals and companies with business activity, loan mortgage, auto finance, among others, to more accessible interest rates.
The financial and various savings banks also give credits, usually individuals without business activity, with the difference that in these interest rate is higher.
Financial services
Financial services are those provided by the different organizations that make up the financial system and that facilitate the movement of money. Chief among them are financial intermediaries.
In this way, the financial system fulfills its functions of intermediating resources and enabling the existence of the payment system in the economy through the provision of various financial services.
In the first instance we can find multipurpose banking or second-tier banking, which provides us with a wide variety of financial services, in the second instance we find a diversity of financial companies which also provide us with financial services on a smaller scale.
Banco de México is the Mexican central bank. By constitutional mandate, it is autonomous in its functions and administration. Its purpose is to provide the country's economy with national currency.
goals
Its priority objective is to ensure the stability of the purchasing power of said currency. Additionally, it is responsible for promoting the healthy development of the financial system and promoting the proper functioning of payment systems.
Purpose
Banco de México has among its purposes the promotion of the healthy development of the financial system in order to achieve a stable, accessible, competitive and efficient system. A financial system with these characteristics facilitates the fulfillment of the tasks of the central bank.
Through the banking system, a central bank puts into circulation the national currency and implements monetary and exchange policies. The implementation of these policies, in turn, affects the prices that are determined in the financial markets, such as interest rates or the exchange rate.
Monetary politics
The financial system plays a central role in the operation and development of the economy. It is mainly made up of different intermediaries and financial markets, through which a variety of instruments mobilize savings towards their most productive uses. Banks are perhaps the best-known financial intermediaries, since they offer their services directly to the public and form a core part of the payment system. However, many other intermediaries and organizations participate in the financial system, offering services of great utility to society.
A stable, efficient, competitive and innovative financial system contributes to raising sustained economic growth and the well-being of the population. To achieve these objectives, it is essential to have a solid institutional framework and financial regulation and supervision that safeguard the integrity of the system itself and protect the interests of the public. Therefore, one of its purposes is to promote the healthy development of the financial system.
Introduction to the financial system
The main function of a financial system is to intermediate between those who have and those who need money. Those who have money and do not require it in the short term to pay debts or make consumptions want a prize in exchange for sacrificing the immediate benefit they would obtain by having those resources.
That award is known as the interest rate.
Those who require, in the short term, more money than they possess, either to generate added value through a productive project (create additional wealth) or to cover a payment obligation, are willing to pay, in a certain period and through a plan of previously agreed payments, an additional cost for immediately obtaining the money.
That cost is the interest rate.
Matching the needs and wants of some, the savers, with the needs of others, the debtors, is the main task of the financial system and in this work interest rates play a central role.
Financial intermediation and intermediaries
A financial system is made up of different financial intermediaries, the best known and most prominent being banks. Still others are insurers, sureties, lessors, brokerage houses, and mutual fund managers. As financial intermediaries, banks are indispensable for the existence and proper functioning of any financial system.
Bank intermediation has two main faces: when loans are granted and when resources are obtained. When banks grant loans, they charge an interest rate known as the active interest rate. In turn, banks pay those who have entrusted their resources with an interest rate known as the passive interest rate.
The development bank, for its part, is made up of:
- Nacional Financiera (Nafin, www.nafin.com), whose objective is to channel technical and financial support for industrial development; Banco Nacional de Obras y Servicios Públicos (Banobras, www.banobras.gob.mx), aimed mainly at financing investment projects public or private infrastructure; Banco Nacional de Comercio Exterior (Bancomext, www.bancomext.com), aimed at financing the country's foreign trade; Banco del Ahorro Nacional y Servicios Financieros (Bansefi, www.bansefi.gob.mx), whose The objective is to promote savings and financing among the members of the popular savings and credit sector; the National Bank of the Army, Air Force, and Navy (Banj Ejercito, www.banjercito.com.mx), which grants credits and financing to members of the Army, Mexican Navy and Air Force; and, Sociedad Hipotecaria Federal (SHF, www.shf.gob.mx) that provides credit and guarantees for the construction, acquisition and improvement of housing, preferably of social interest.
Finally, as a development intermediary, there is also the Financiera Rural (www.financierarural.gob.mx), which, similar to FIRA, aims to improve the standard of living of the rural population by granting credit to promote the development of the agricultural, forestry and fishing sectors. Financiera Rural operates primarily as a "first-tier" bank, unlike FIRA, which operates as a "second-tier" bank and provides training and technology transfer support
Financial system regulation
The authorities of the financial system in Mexico are the Ministry of Finance and Public Credit (SHCP), Banco de México (BANXICO), the National Banking and Securities Commission (CNBV), the Institute for the Protection of Bank Savings (IPAB), the National Commission of Insurance and Bonds (CNSF), the National Commission of the Retirement Savings System (Consar) and the National Commission for the Protection and Defense of Users of Financial Services (Condusef).
Regulatory framework
- Credit Institutions Law (published on July 18, 1990) Securities Market Law (published on December 30, 2005) Law to Regulate Financial Groups (published on July 18, 1990) Law for the Transparency and Regulation of Financial Services (published on June 15, 2007) Transparency Law and Promotion of Competition in Guaranteed Credit (published on December 30, 2002) General Law on Organizations and Auxiliary Activities of Credit (published on January 14, 1985) Law to Regulate Credit Information Societies (published on January 15, 2002) Payment Systems Law (published on December 12, 2002) Banco de México Law (published on December 23, 1993) Savings and Popular Credit (published on June 4, 2001) Bank Savings Protection Law (published onJanuary 19, 1999) Retirement Savings Systems Law (published on May 23, 1996) Law of the National Banking and Securities Commission (published on April 28, 1995) Investment Companies Law (published on June 4, 2001) General Law of Mutual Insurance Institutions and Societies (published on August 31, 1935) Federal Law on Surety Institutions (published on December 29, 1950) Credit Unions Law (published on August 20 2008) General Law on Securities and Credit Operations (published on August 27, 1932) Law on Protection and Defense of the User of Financial Services (published on January 18, 1999)Investment Companies (published on June 4, 2001) General Law on Mutual Insurance Institutions and Societies (published on August 31, 1935) Federal Law on Surety Institutions (published on December 29, 1950) Credit Unions Law (published on August 20, 2008) General Law on Securities and Credit Operations (published on August 27, 1932) Law on Protection and Defense of the User of Financial Services (published on January 18, 1999)Investment Companies (published on June 4, 2001) General Law of Institutions and Mutual Insurance Companies (published on August 31, 1935) Federal Law on Surety Institutions (published on December 29, 1950) Credit Unions Law (published on August 20, 2008) General Law on Securities and Credit Operations (published on August 27, 1932) Law on Protection and Defense of the User of Financial Services (published on January 18, 1999)Protection and Defense of the User of Financial Services (published on January 18, 1999)Protection and Defense of the User of Financial Services (published on January 18, 1999)
The financial
Role of financial institutions
Financial markets are not perfect, because if they were, sales in primary and secondary markets would be within the reach of investors to acquire them, as well as all the information in this regard, but since this is not possible, markets are imperfect.
Buyers and sellers of securities do not have full access to the information and cannot always divide the values of the volume they want, that is why financial institutions are necessary to resolve the impasse that may occur. Without these, the information and transaction costs of operations in the markets would be extremely high. How-financial-institutions-operate / how-financial-institutions-operate
Contrary to what some people think, financial institutions in Chiapas are not just banks, some of the financial institutions in Chiapas can be:
- Credit unions that, in addition to raising money from their members, can do so from the public. Savings banks, who keep a group of members affiliated and promote credits depending on the amount the client has saved. of savings and credit that carry out intermediation operations that the Law indicates.
Regulation of financial institutions
Non-bank financial institutions in Chiapas are participating institutions of the financial system that do not belong to the banking system. These institutions are dedicated to strengthening the development and financial integration of the country.
Said financial institutions are also regulated under the same financial system and regulatory framework of banks.
Among the functions of the most requested financial institutions are:
- Savings and contributions Family remittances Insurances Financing of all kinds Technical assistance to its associates Training and advice to its partners
In general, financial institutions are oriented to attracting small savings and capital and financing micro, small and medium-sized enterprises in rural and urban sectors. In the same way, they help independent people who require personal credits for any situation out of reach.
