Mexico City — The sale of Banamex will usher in more competition in the Mexican financial system and will bring about a reconfiguration of commercial banking in the country, BBVA México’s Vice Chairman and CEO Eduardo Osuna said in a press conference on Thursday.
Presenting BBVA México’s quarterly results report for the fourth quarter of 2021, Osuna said that, while it is unfortunate that a global player such as Citigroup Inc. (C) has decided to exit the retail banking business in Mexico, the sale of the business opens the door for other players to enter the market and generate more competitive conditions.
“This can contribute to greater competition in Mexico, and that is good for Mexicans, and it is good for forcing all competitors to improve. It is a transaction with a positive edge”Eduardo Osuna, BBVA México's CEO
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Osuna said that such an important change in the player behind such a big name as Banamex will reshape the system somewhat, although this will also depend on who buys the bank, regardless of whether it is a local or foreign player.
“The important thing is that whoever buys the bank has the capacity to manage a bank as important as Banamex and that, above all, it encourages investment in Mexico and forces the rest of us to compete in an even more innovative way so that we continue to improve the levels of competition and investment.”Eduardo Osuna, BBVA México's CEO
Osuna added that Mexico has 50 banks that generate “a great deal” of competition by niche and geography, and he estimated that there will be a repositioning of the financial system, depending on who the buyer is, leading to a reconfiguration of the medium-sized banks in the country.