In Brief: Mexican Regulators Revamp Capital Rules

Mexican banking authorities have unveiled a set of rules aimed at improving the quality of capital.

The rules take effect in January and are planned to be implemented over a three-year period, during which the banks are expected to raise no less than $5 billion in fresh capital.

Regulators are concerned about the rapid increase of deferred taxes and subordinated obligations in capital accounts. "Apparently, bank capital is high, but one wonders, how solid is that capital?" said Javier Gavito Moheno, vice president of the National Banking and Securities Commission. -- Banca Latina