XVII National Conference of Lawyers organized by the Mexican Bar Association
Our banking regulation and administrative litigation team’s work led The Mexican Supreme Court of Justice to set a precedent of importance and transcendence for the financial sector, with a relevant social component
Our Banking Regulation / Administrative Litigation team represented Bancoppel (Mexican Bank focused in rendering financial services to the base of the pyramid in the country), with a legal comprehensive defense strategy initiated before the federal courts all the way to the Mexican Supreme Court of Justice (“SCJN”) in connection with a fine imposed by the Mexican Banking and Securities Commission (“CNBV”) for an alleged violation to the Mexican Banking Regulation related with the obligation to evaluate the feasibility of payment before granting credits.
This matter concluded after an intensive 3-year litigation process, with the resolution to the Amparo proceeding before the SCJN; which sat a precedent with respect to the interpretation of the Banking Regulation.
The SCJN ruled that when evaluating the feasibility of a credit payment, financial institutions could evaluate both “quantitative” data (e.g. incomes, expenses, other loans) and “qualitative” (credit history, credit behavior before department stores, among others) data and that the “quantitative” data could be negative (as opposed to the CNBV’s criterion), as long as both elements were analyzed in its parametric models.
This precedent is relevant since the Mexican economy relies heavily in the informal sector (more than 40%) and it is very difficult for families and small businesses to access credit solely based in financial data. Additionally, this is the first time that the SCJN analyses the scope and reach of the provision set forth in the Banking Regulation in connection with the obligation of the Credit Institutions to evaluate the feasibility of credit payment.
The participation of our team members was crucial, as they managed to make the SCJN attract for resolution the matter to set a precedent of importance and transcendence for the financial sector, with a relevant social component.