Mexican Finance Minister Ernesto Cordero said Thursday that the government plans to submit legislation later this year that would make it easier for regulators to close insolvent banks.

"Its objective is to create an efficient process that minimizes the fiscal cost and improves the possibility of recovering assets with greater legal certainty," according to a copy of remarks that Cordero made during a banking seminar hosted by the ministry.

Mexico experienced a banking crisis in 1995, when a sharp devaluation of the peso and a surge in interest rates caused most of the country's banks to go into government receivership or receive billions in bailout funds. Fifteeen years later, Mexico's banks are profitable and among the best capitalized in the world.

The sector's combined net profit rose by 11%, and the top seven banks sported an average capitalization ratio of 16.9% at the end of March.

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