Exclusive: Mexico banking watchdog boosts oversight of banks after Trump win

Vaniceseasonal's Blog

Thanks;Roberto Aguilar, Noe Torres and Alexandra Alper| MEXICO CITY

Publised;Mon Nov 14, 2016

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Mexican banking regulators have begun extraordinary daily checks on the health of banks and brokerages since Donald Trump clinched the U.S. presidential election, four people familiar with the matter said.

The checks are focused on the capital and liquidity levels at the financial institutions, three sources said, adding that regulators were particularly interested in banks’ holdings of Mexican government peso-bonds.

Yields on Mexico’s ten-year benchmark fixed rate bonds have risen over 100 basis points since the election, their highest since 2011, on concern that Trump could rework or scrap the North American Free Trade Agreement (NAFTA) and worries that his stimulus policies could mean higher U.S. interest rates.

Two of the sources said that information on derivatives positions was being sought in some cases.

Three sources said their institutions had received one or two…

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