Grupo Financiero Banamex S.A. de C.V. has its origins and is the owner of the Banco Nacional de México or Citibanamex (formerly Banamex). It is the second-largest bank in Mexico. The Banamex Financial Group was purchased by Citigroup in August 2001 for $12.5 billion USD. It continues to operate as a Citigroup subsidiary.
Banamex was formed on 2 June 1884 from the merger of two banks, Banco Nacional Mexicano and Banco Mercantil Mexicano, which had operated since the beginning of 1882.[3] The newly founded bank had branches in Mérida, Veracruz, Puebla, Guanajuato and San Luis Potosí, and opened a branch in Guadalajara. After the start of World War I, the French managers of the bank left Mexico. After 10 years, Agustín Legorreta Ramírez who served as acting president managed to revive the bank. Following its reorganization, the bank collaborated with Banco de Mexico and US government officials. By 1937, 36 out of 50 bank branches in Mexico were owned by Banamex.[3]
Banamex gradually introduced several financial product innovations to the Mexican market including the first credit cards in 1968[4] and an ATM banking system in 1972.[5] In 1977, Grupo Banamex was formed by merging the bank with its investment and mortgage assets.[3] Four years later, Banamex acquired the California Commerce Bank.[6]
Facade of the Banamex building located on the corner of Carranza and Palma streets in the historic center of Mexico City.
During a severe economic crisis in 1982, then Mexican president José López Portillo announced a major devaluation of the peso and nationalized all private banks in Mexico.[7] For the next nine years, Banamex operated as a government-owned national credit association. In 1991, Banamex was reprivatized and it established Grupo Financiero Banamex–Accival with the investment bank Acciones y Valores de México (Accival). It had 720 branch offices, 31,797 employees, assets of $26.2 billion and a customer base of four million people making it the largest financial group in Latin America at the time.[3]
As a result of the private credit aggressive expansion in Mexico, resulted in a strain of the bank's balance sheet (loan portfolio quality ratios and capitalization ratios). The December 1994 macro-devaluation of the Mexican pesos and the ensuing significant increase in domestic interest rates coupled with a dramatic economic recession, caused Banamex's and much of the rest of the privatized banks to essentially become insolvent.[3]
Banamex former logo used from the 1990s until 2016
In order to avoid the potentially catastrophic effects of generalized bank bankruptcies, the Ernesto Zedillo administration decided to rescue the troubled banks through a government fund (Instituto de Protección al Ahorro Bancario or IPAB, later called Fondo Bancario de Protección al Ahorro or Fobaproa). IPAB enticed the banks' shareholders to inject fresh equity into the banks by pledging to buy from the banks non-performing loans in a two to one (or in some cases greater) ratio with respect to the newly injected fresh capital in exchange for a long-dated government note with capitalized interest. Banamex eventually sold $_ worth of non-performing loans to IPAB, and its shareholders injected $_ of fresh equity. The combination of these measures coupled with a recovery of the Mexican economy helped clean up the bank's balance sheet.
From 1997 to 2001 Roberto Hernández Ramírez was the CEO.[8] In 1997, Afore Banamex was created to access the newly created private pension fund market.[9]
On 6 August 2001, Citigroup Inc. acquired Grupo Financiero Banamex-Accival for US$12.5 billion, which became Grupo Financiero Banamex.[10] This was the largest-ever U.S.-Mexico corporate merger. Grupo Financiero Banamex's operations were integrated with Citibank's relatively small existing Mexico business under the Banamex brand name.[3]
In October 2014, allegations were made that employees had taken millions of dollars in kickbacks from vendors. Authorities in Mexico and the United States are investigating the allegations. Citigroup encouraged Manuel Medina-Mora to resign.[11]
After Citigroup's purchase of Banamex in 2001, Banamex decided to expand into the U.S. by opening a subsidiary in the country and creating Banamex USA. Most of the bank branches were located in the Southwest with branches in California, Texas, and Arizona. The U.S. subsidiary didn't last long though and was shut down in 2015 after a 6-year investigation into Citigroup's and Grupo Financiero Banamex' money laundering scheme by the U.S. Department of Justice.[17] This resulted in Citigroup having to pay a $140 million fine.[18]
^ abBanco Nacional de México, S.A. (2013). "Reporte Anual que se presenta de acuerdo con las Disposiciones de Carácter General aplicables a las Emisoras de Valores y a otros Participantes del Mercado de Valores respecto al ejercicio terminado el 31 de diciembre de 2012" (PDF) (in Spanish). pp. 6–7, 61. Retrieved 22 March 2014.
^Grupo Financiero Banamex, S.A. de C.V. (2013). "Consejo de Administración" (PDF) (in Spanish). Retrieved 22 March 2014.
^ abcdefg"History of Grupo Financiero Banamex S.A". Funding Universe. Retrieved 6 July 2020.
^Juliana Etcheverry (19 July 2017). "The advantages of local acquiring in Mexico". Latin America Business Stories. Retrieved 6 July 2020.
^Bernardo Batiz-Lazo, J. Carles Maixé-Altés, Paul Thomes (23 November 2010). Technological Innovation in Retail Finance: International Historical Perspectives. Routledge. p. 108. ISBN9781136884535. Retrieved 6 July 2020.{{cite book}}: CS1 maint: multiple names: authors list (link)
^Mauro F. Guillén, Adrian Tschoegl (1 July 2008). Building a Global Bank: The Transformation of Banco Santander. Princeton University Press. p. 102. ISBN978-1400828333. Retrieved 6 July 2020.
^Jonathan Kandell (18 February 2004). "José López Portillo, President When Mexico's Default Set Off Debt Crisis, Dies at 83". The New York Times. Retrieved 6 July 2020.
^"Another Scandal Hits Citigroup's Moneymaking Mexican Division". The New York Times. 14 October 2014.
^ ab"Grupo Financiero Citibanamex, S.A. de C.V". Dun & Bradstreet. Retrieved 10 July 2020.
^"Arrendadora Banamex S.A. de C.V. Org Aux De Credito (Mexico)". Emis.com. Retrieved 10 July 2020.
^"Informacion Corporativa de Tarjetas" (in Spanish). Banamex. Retrieved 10 July 2020.
^Gregorio Impavido (2007). The Mexican Pension Annuity Market. World Bank Publications. p. 5. Retrieved 10 July 2020.
^"Fomento Social" (in Spanish). Banamex. Retrieved 10 July 2020.
^"Citigroup Likely to Close Banamex USA". Stock Market Advice | Investment Newsletters - Profit Confidential. 1 June 2015.
^"UPDATE 2-Citi to shut Banamex USA, pay $140 mln fine". Reuters. 22 July 2015 – via www.reuters.com.
External linksedit
Citibanamex (in English)
Afore Banamex (in Spanish)
Fomento Cultural (in Spanish)
November 01, 2023
grupo, financiero, banamex, this, article, needs, additional, citations, verification, please, help, improve, this, article, adding, citations, reliable, sources, unsourced, material, challenged, removed, find, sources, news, newspapers, books, scholar, jstor,. This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Grupo Financiero Banamex news newspapers books scholar JSTOR September 2014 Learn how and when to remove this template message Grupo Financiero Banamex S A de C V has its origins and is the owner of the Banco Nacional de Mexico or Citibanamex formerly Banamex It is the second largest bank in Mexico The Banamex Financial Group was purchased by Citigroup in August 2001 for 12 5 billion USD It continues to operate as a Citigroup subsidiary Grupo Financiero Banamex S A de C VTrade nameCitibanamexTypeSubsidiaryIndustryFinancial servicesPredecessorGrupo Financiero Banamex AccivalFounded2 June 1884 139 years ago 1884 06 02 1 as Banco Nacional de Mexico Banamex HeadquartersMexico City MexicoKey peopleManuel Medina Mora Escalante Chairman of the Board Ernesto Torres Cantu CEO 2 ProductsBanking financialRevenueUS 18 3 billion 2010 Net incomeUS 1 7 billion 2010 Total assetsUS 58 4 billion 2011 Number of employees41 390 2012 1 ParentCitigroupWebsitewww wbr banamex wbr com Contents 1 History 2 Subsidiaries 2 1 Banamex USA 3 See also 4 References 5 External linksHistory editBanamex was formed on 2 June 1884 from the merger of two banks Banco Nacional Mexicano and Banco Mercantil Mexicano which had operated since the beginning of 1882 3 The newly founded bank had branches in Merida Veracruz Puebla Guanajuato and San Luis Potosi and opened a branch in Guadalajara After the start of World War I the French managers of the bank left Mexico After 10 years Agustin Legorreta Ramirez who served as acting president managed to revive the bank Following its reorganization the bank collaborated with Banco de Mexico and US government officials By 1937 36 out of 50 bank branches in Mexico were owned by Banamex 3 Banamex gradually introduced several financial product innovations to the Mexican market including the first credit cards in 1968 4 and an ATM banking system in 1972 5 In 1977 Grupo Banamex was formed by merging the bank with its investment and mortgage assets 3 Four years later Banamex acquired the California Commerce Bank 6 nbsp Facade of the Banamex building located on the corner of Carranza and Palma streets in the historic center of Mexico City During a severe economic crisis in 1982 then Mexican president Jose Lopez Portillo announced a major devaluation of the peso and nationalized all private banks in Mexico 7 For the next nine years Banamex operated as a government owned national credit association In 1991 Banamex was reprivatized and it established Grupo Financiero Banamex Accival with the investment bank Acciones y Valores de Mexico Accival It had 720 branch offices 31 797 employees assets of 26 2 billion and a customer base of four million people making it the largest financial group in Latin America at the time 3 As a result of the private credit aggressive expansion in Mexico resulted in a strain of the bank s balance sheet loan portfolio quality ratios and capitalization ratios The December 1994 macro devaluation of the Mexican pesos and the ensuing significant increase in domestic interest rates coupled with a dramatic economic recession caused Banamex s and much of the rest of the privatized banks to essentially become insolvent 3 nbsp Banamex former logo used from the 1990s until 2016In order to avoid the potentially catastrophic effects of generalized bank bankruptcies the Ernesto Zedillo administration decided to rescue the troubled banks through a government fund Instituto de Proteccion al Ahorro Bancario or IPAB later called Fondo Bancario de Proteccion al Ahorro or Fobaproa IPAB enticed the banks shareholders to inject fresh equity into the banks by pledging to buy from the banks non performing loans in a two to one or in some cases greater ratio with respect to the newly injected fresh capital in exchange for a long dated government note with capitalized interest Banamex eventually sold worth of non performing loans to IPAB and its shareholders injected of fresh equity The combination of these measures coupled with a recovery of the Mexican economy helped clean up the bank s balance sheet From 1997 to 2001 Roberto Hernandez Ramirez was the CEO 8 In 1997 Afore Banamex was created to access the newly created private pension fund market 9 On 6 August 2001 Citigroup Inc acquired Grupo Financiero Banamex Accival for US 12 5 billion which became Grupo Financiero Banamex 10 This was the largest ever U S Mexico corporate merger Grupo Financiero Banamex s operations were integrated with Citibank s relatively small existing Mexico business under the Banamex brand name 3 In October 2014 allegations were made that employees had taken millions of dollars in kickbacks from vendors Authorities in Mexico and the United States are investigating the allegations Citigroup encouraged Manuel Medina Mora to resign 11 Subsidiaries edit nbsp A Banamex ATM in Puerto VallartaThe following are subsidiaries of Grupo Financiero Banamex Banamex 3 Accival 12 Afore Banamex 9 Seguros Banamex 12 Arrendadora Banamex 13 Operadora e Impulsora de Negocios 14 Accion Banamex Pensiones Banamex 15 Fomento Cultural Fomento Social 16 Banamex USA edit After Citigroup s purchase of Banamex in 2001 Banamex decided to expand into the U S by opening a subsidiary in the country and creating Banamex USA Most of the bank branches were located in the Southwest with branches in California Texas and Arizona The U S subsidiary didn t last long though and was shut down in 2015 after a 6 year investigation into Citigroup s and Grupo Financiero Banamex money laundering scheme by the U S Department of Justice 17 This resulted in Citigroup having to pay a 140 million fine 18 See also edit nbsp Mexico portal nbsp Banks portal1884 in Mexico AmeroReferences edit a b Banco Nacional de Mexico S A 2013 Reporte Anual que se presenta de acuerdo con las Disposiciones de Caracter General aplicables a las Emisoras de Valores y a otros Participantes del Mercado de Valores respecto al ejercicio terminado el 31 de diciembre de 2012 PDF in Spanish pp 6 7 61 Retrieved 22 March 2014 Grupo Financiero Banamex S A de C V 2013 Consejo de Administracion PDF in Spanish Retrieved 22 March 2014 a b c d e f g History of Grupo Financiero Banamex S A Funding Universe Retrieved 6 July 2020 Juliana Etcheverry 19 July 2017 The advantages of local acquiring in Mexico Latin America Business Stories Retrieved 6 July 2020 Bernardo Batiz Lazo J Carles Maixe Altes Paul Thomes 23 November 2010 Technological Innovation in Retail Finance International Historical Perspectives Routledge p 108 ISBN 9781136884535 Retrieved 6 July 2020 a href Template Cite book html title Template Cite book cite book a CS1 maint multiple names authors list link Mauro F Guillen Adrian Tschoegl 1 July 2008 Building a Global Bank The Transformation of Banco Santander Princeton University Press p 102 ISBN 978 1400828333 Retrieved 6 July 2020 Jonathan Kandell 18 February 2004 Jose Lopez Portillo President When Mexico s Default Set Off Debt Crisis Dies at 83 The New York Times Retrieved 6 July 2020 Roberto Hernandez Ramirez The Nature Conservancy Retrieved 10 July 2020 a b Simpson Atoll 9 January 2017 Afore Banamex s CIO forging the way for Mexico s pension funds Citywire Retrieved 10 July 2020 Citigroup Inc Pursuant to Rule 425 under the Securities Act of 1933 U S Securities and Exchange Commission Retrieved 6 July 2020 Another Scandal Hits Citigroup s Moneymaking Mexican Division The New York Times 14 October 2014 a b Grupo Financiero Citibanamex S A de C V Dun amp Bradstreet Retrieved 10 July 2020 Arrendadora Banamex S A de C V Org Aux De Credito Mexico Emis com Retrieved 10 July 2020 Informacion Corporativa de Tarjetas in Spanish Banamex Retrieved 10 July 2020 Gregorio Impavido 2007 The Mexican Pension Annuity Market World Bank Publications p 5 Retrieved 10 July 2020 Fomento Social in Spanish Banamex Retrieved 10 July 2020 Citigroup Likely to Close Banamex USA Stock Market Advice Investment Newsletters Profit Confidential 1 June 2015 UPDATE 2 Citi to shut Banamex USA pay 140 mln fine Reuters 22 July 2015 via www reuters com External links editCitibanamex in English Afore Banamex in Spanish Fomento Cultural in Spanish Retrieved from https en wikipedia org w index php title Grupo Financiero Banamex amp oldid 1161752158, wikipedia, wiki, book, books, library,
