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Economic Commentary

The Hidden Costs of Mexican Banking Reform

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Analyses of the Mexican financial system in the wake of the 1994- 95 peso crisis have generally focused on the fiscal costs of recapitalizing the nation’s banks and of satisfying bank claimants. Seemingly missing from these reports are the possible costs of the incentives provided by banking reform. Such costs might be reflected in the prices at which Mexican banks attract funding or the likelihood that taxpayers will have to provide additional assistance.

01.01.1997ISSN 2163-3738 EC 1/1/1997

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This paper and its data are subject to revision; please visit clevelandfed.org for updates.

Suggested Citation

Osterberg, William P. 1997. “The Hidden Costs of Mexican Banking Reform.” Federal Reserve Bank of Cleveland, Economic Commentary 1/1/1997.

This work by Federal Reserve Bank of Cleveland is licensed under Creative Commons Attribution-NonCommercial 4.0 International