Competition Policy in the Mexican Financial System

Abstract

The analysis of the structure and efficiency of the financial system is the baseline to design and implement a competition policy. Likewise, competition policy is an institutional means to improve the efficiency of the financial industry. However, the effective implementation of a competition policy in the financial system requires at least two preconditions. One is a regulatory framework that enhances competition and strengthens the capabilities of government agencies to prevent, deter, and penalize anticompetitive practices. This also involves an adequate communication and coordination among financial regulators and antitrust authorities. Another precondition is a precise knowledge of how the financial system works in a specific economy—in our case, Mexico—and an accurate assessment of how to correct an anticompetitive practice in that context. This chapter aims to show how these two preconditions developed in Mexico.