National Banking and Securities Commission (CNBV)

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The National Banking and Securities Commission (CNBV) is the institution in charge of supervising, controlling and regulating the entities that make up the financial system of Mexico.

In a non-technical way, and for us to understand each other, it is the police of the financial system of Mexico. He sees to it that the rules are followed. In other countries such as Spain there are similar institutions such as the National Securities Market Commission (CNMV).

In any case, the functions of similar entities in different countries may differ. In other words, the specific functions attributed to it may be different according to the needs of each country and how it is organized.

CNBV Foundation

The birth of the National Banking and Securities Commission (CNBV) is motivated by the growth of the Mexican financial system. The CNBV was founded on April 28, 1995. However, the origin of this commission has a history that dates back much earlier.

At the end of the 19th century, due to the financial growth of Mexico, it was necessary to create an institution that was responsible for ensuring compliance with certain rules. Some rules in the form of Law, whose objective was to ensure a fair and controlled growth of the financial system and, therefore, of the entities that comprised it.

The Ministry of Finance and Public Credit (SHPC) was the one who initially took care of this issue. Already in 1924 the National Banking Commission (CNB) would be created. At that time the CNB, which was independent, became the only institution charged with oversight.

In 1946, in line with the evolution that was taking place in the financial markets of Mexico, and around the world, the need arose to create another regulatory body: the National Securities Commission (CNV). The CNV, like the CNB, was formed as an independent body.

From then on, both entities coexisted and evolved. Each one was in charge of different functions. On the one hand, the CNB was in charge of supervising the entities, and on the other, the CNV was in charge of controlling entry into the stock market.

Finally, in 1995 with the approval of the Law of the National Banking and Securities Commission, both institutions merged. In this way, as indicated in the first article of said Law, both entities unite and form a totally autonomous body of the Ministry of Finance and Public Credit.

Functions of the National Banking and Securities Commission (CNBV)

The powers that are legally attributed to the National Banking and Securities Commission (CNBV) are many and varied. Specifically, it is about 38 legal powers. We could say, however, that all these powers are summarized in the following functions:

  • Issue the regulation that financial institutions must respect.
  • Supervise the financial entities integrated in the financial system of Mexico.
  • Certify the professionals who are in charge of the supervision of Mexican financial institutions.
  • Authorize individuals who are related to operations in financial markets.
  • Correct, through intervention or sanction, entities or persons that do not comply with the Law.
  • Investigate those cases in which there are financial irregularities.
  • Participate in the liquidation processes of financial entities.
  • Prepare the proper record of changes in the Mexican financial system.

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