The shares of banks listed on the Mexican Stock Exchange (BMV) have fallen sharply because of the Morena bill, which prohibits the collection of commissions from some of its services.
Panic caused losses of 82 124 million pesos in the market capitalization of five banks listed on the local equity market, including Banorte, Santander, Banco del Bajío, Inbursa and Regional (formerly Banregio).
"The market is overreacting to messages, not because messages are not important, but because there is a long way to apply them, in fact, it would not have a significant impact on banks' operating income in the stock market, because it aims to regulate very specific commissions that many banks no longer charge, "said Manuel González, analyst at Signum Research.
Banorte, whose weight is 12.96% in the main BMV index, recorded the largest decrease. His shares lost 11.90% at the price of 106.94 pesas per piece, compared to 121.39 pesos from the previous closing. With this fall, the value of capitalization fell by 41,666 million pesos.
Analysts said this was the biggest loss since the financial crisis in 2008.
Inbursa, Carlos Slim's financial arm, was the second bank most affected by the crisis, with a loss of 10.08% at a price of 25.52 pesas per unit. Santander ended with a drastic decline of 8.12 percent. The story is told equally for the regions and Banco del Bajío, which fell by 7.32% and 6.98%, in that order.
Contracts with the same negative market sentiment caused shares of other financial groups on the stock market, such as Genter, Crédito Real and Unifin, to fall sharply, by 10.23%, 7.33% and 3.15, respectively.
Analysts have explained that if the proposal is approved, banks' income and profits will be reduced, and therefore will have to make adjustments in other products or services to compensate for "losses".
"This means removing important income from the bank to compensate for the loss of income, the interest rate on the loans they grant will make them even more expensive," explained the independent entrepreneur Érick Arámbula.
The initiative contained in the document is revealed by the feeling of "disturbing and excessive abuse" by banking committees that have an impact on the Mexican population. In fact, this means that the fee for this concept last year was 108,000 million pesos, 8% more than in 2016.
Initiative of the National Revitalization Movement (Morena) proposes to prohibit banks from charging 12 commissions, such as lifetime credit cards, checking account balance at the cash desk, withdrawing cash at their own ATMs, issuing an additional bank statement and replacing the card in case of theft or loss.
On the other hand, an analyst at Banco Ve por Más, Marisol Huerta, pointed out that some commissions that want to be eliminated are no longer taken by some banks, without specifying which ones.
He pointed out that this is only a legal initiative, which still has to be submitted for approval and does not preclude the banking sector from taking any action.
"As long as the initiative is not approved, the actual impact on the banks can not be determined," he said.
Georges Hatcherian, analyst at Moody & # 39; s, said the initiative is negative for banks' credit effects, because it will affect their profitability, because commissions account for about 17% of their net income.
"The proposal also creates uncertainty about the direction the new government will take in Mexico regarding central bank independence, because it claims that Banxico's measures to regulate commissions have been insufficient." The cornerstone of Mexico's macroeconomic and financial stability over the past two years the decade was the presence of an independent central bank, "- he said.
In the afternoon, legislators said they would review proposals with the sector, including the secretary of the treasury, Carlos Urzúa, who commented that decisions would not be taken recklessly. However, losses for investors were on the market.