Research Paper on:
Mexico's System of Banking

Unformatted Sample Text from the Research Paper:
came out of Mexicos banks. First there was the huge recession of 1982, which meant that the government had to take over the banks. Then came an unfortunate experiment in  bank privatization that ended up fueling the peso devaluation crisis of 1994. In the ensuing years, the banks, strapped for cash, floundered and ended up tottering on the brink of  bankruptcy, at least until the Mexican Congress relented and cut down (and eventually eliminated) foreign restrictions on bank ownership in Mexico. As a result, the banks attracted a great deal  of foreign investment from outside sources, which has helped the institutions move toward a more positive way of doing business and dealing with finances.  In short, the Mexican banking system is moving from one that was highly closed and nationalized toward one that is ready to face global competition. Right now, however,  the system is in transition - and as anyone knows, transitions can entail growing pains. Banking System Profile When discussing the question  of domestic banks versus foreign banks in Mexico, this almost needs to be considered within the same category, especially in this day and age. While Mexican banks were once considered  only domestic, todays banks are, for the most part, owned and operated by foreign concerns, which control assets through subsidiaries and special financial groups.  The globalization of Mexican banking began during early 1994, with the advent of the North American Free Trade Agreement (NAFTA) (Bubel and Skelton, 2002). NAFTA was the first  wedge into what had been essentially a closed banking system in Mexico (Bubel and Skelton, 2002). More openness on the part of the Mexican banks was necessary in order for