DEVELOPMENT BANKING

INTRODUTION

Mexican financial system:"the set of organizations and institutions that capture, manage and channel investment , savings within the legal framework applicable in the country. “

The Development Banking is part of the Mexican public authorities responsible.

The Development Banking was created to provide financial services in the priority sectors for development of the Nation.

Definition: Development bankingInstitutions engaged in banking services and long-term credit to meet the momentum of sectors, regions or priority activities according to their constituent organic laws. The development banking institutions are intended to finance priority projects for the country and fairly and efficiently stimulate national economic development.  It is a fundamental instrument of the state to support the development of the country with financial mechanisms and technical boost to sectors, regions and priority activities through the provision of banking services and credit. (NAFIN) 

Background of the Development Banking

The historical precedents of the Development Banking date back to the early nineteenth century, time of accelerated industrialization in European countries, which required large financial institutions, the oldest was the Société Générale pour L'Industre favoriser Nationale created in Netherlands in 1822, about 1850 was created in France, and 10 years later spread throughout Europe and Japan.

IN MEXICOIn Mexico, there were created the following banks:

(1926),

National Agricultural Credit Bank

National Mortgage

Bank Urban and Public

Works .

(1933,)

Today Banobras

(1934),

Nacional Financiera

(1935)

National Ejido Credit Bank

(1937)

National Foreign

Trade Bank

The institutions of the Development Banking are defined as majority state-owned companies, members of the Public Parastatal, which are governed by their respective Basic Laws and the Law on Credit Institutions, to which is applied to the Federal Entities, in the subjects and issues that their especific organic lawsnot regulate .

Legal Framework of the Development

Banking

The Organic Law of Federal Public

Administration, meanwhile, provides the basis for its segment in the Ministry of Finance

and Public Credit.

Concept Development BankingThe Credit Institutions Act provides that the Mexican

banking system comprises the Bank of Mexico, commercial banks, the Development Banking

institutions and public trusts set up by the federal government for economic development. Similarly,

notes that the State exercises guidance of the Mexican banking system, so that it orient their activities

primarily to support and promote the development of the country's productive forces and the growth of the

national economy.The objective :

is providing access to funding to individuals and corporations, as well as providing technical assistance and training in terms of their organizational laws,

Today, the Financial System Development, is composed of the following institutions:

National Societies of

Credit

Decentralized Bodies:

• National Bank of Construction and Services public spaces, CNS• Nacional Financiera, S.N.C•Banco Nacional de Comercio Exterior, S.N.C.• National Bank of air force, navy and army, SNC• National Savings and Financial Services, SNC• Federal Mortgage Society, S.N.C.

•Rural Financial•Trusts of economic development:• Trusts Relationship with Agriculture (FIRA)• Capitalization Fund and investment of the Rural sector (FOCIR)

Institucional Organization of Development Banking

In accordance the Law on Credit Institutions,

administration of the national credit companies, Government Development

Banking is vested in a Board of Directors and a General

director in the manner specified by their respective laws and organic regulations and serving their respective

areas of competence.

The national credit institutions emerged

in 1926 at the founding of the

National Agricultural Credit Bank. From

that point, the Federal Government established, merged

and / or settled various institutions,

which currently operate the following:

National Bank

of Public Works and

Services, SNC

(BANOBRAS)

•Was created at the initiative of the Federal Executive on February 20th 1933, as a financial instrument aimed at boosting the provision of public services and meet the needs arising from the urbanization process.

Nacional

Financiera

•Nacional Financiera emerged in 1934, the spirit that inspired its creation was the need to mobilize assets frozen in the banks, to finance economic growth.

Foreign Trade Bank

•Its creation was motivated by the need for a lender that specializes in granting financial support having an impact on the promotion of exports to level the Current Account Balance of Payments

• In order to meet the financing needs of members of the Mexican Army, the Federal Government established the National Bank of the Army, Air Force and Navy, SNC, under the Act published in the Official Journal of the Federation The December 31, 1946.

National Bank of the Army, Air Force and

Navy• Was known as the National Savings Trust

(PAHNAL), decentralized public body created by presidential decree, issued on December 31, 1949 with the aim of promoting the savings habit among the population.

National Savings and

Financial Services

• The immediate background of this institution, is the Operating Fund and the Housing Bank Discounts, currently the Operating Fund and Bank Financing Housing (FOVI), established on April 10, 1963, in order to encourage funding social interest housing.

Federal Mortgage Society

The field has been stressed by the State, on rural lending. That is why since 1926 created the National Agricultural Credit Bank SA, whose mission was to channel funds exclusively to agricultural cooperatives and then to individual producers. 

Rural Financial

Agronomic characteristics of the new bean genotypes for northernSinaloa

Throughput capacity of six bean genotypes.

Main components of yield of five cultivars of beans.

Consolidation of Development Banking

The Development Banking has shown significant progress in recent years to improve its corporate

governance, prudential norms approved the commercial banks and admissions practices,

reduce operational costs, create better institutions focused on sectors objective, as the Federal

Mortgage Society (SHF), the National Savings Bank and Financial Services, SNC (BANSEFI) and

Financiera Rural and design new products more in line with market needs.

Indicators of Development Banking

The assets of the Development Banking evolved considerably in the period from 1970 to 2008 as it´s shown.

Strategic Plan for the Development Banking 2007 - 2012

The Strategic Plan released the Treasury and Public Credit in early March 2007 as the Development Banking is one of the key instruments with which the State has to stimulate the country's competitiveness, inducing greater economic growth, accelerate job creation and reduce the types of disparities.

In this regard, the Plan considers that the activities of the Development Banking should focus on four strategic activities:

1. Increased provision of public infrastructure.2. Development of small and medium enterprises.3. Availability of housing for lower income families.4. Development of low-income rural producers and media.

ConclusionUnlike other countries in the region, Mexico

coexists a process of financial liberalization in the presence of a Development Banking which is

characterized as a major player in both markets as lending collection.

However, although it is clear that the involvement of the Development Banking has been extremely

important in the economic development of Mexico, it is also clear that it has had to rethink carrying

out comprehensive reforms in their actions.The situation being experienced by the Mexican

economy requires, however, structural redefinition without disparaging the virtues of historical experience, seek to combine the interests of

development with the prevailing reality. 

References:http://www.definicion.org/banca-de-desarrollohttp://www.nafin.com/portalnf/content/otros/glosario.do?letter=Bhttp://www.cefp.gob.mx/intr/edocumentos/pdf/cefp/2008/cefp1172008.pdfhttp://www.eclac.cl/cooperacion/noticias/cooperacion/4/13474/miguel_anaya.pdf

Foreign trade financing

Teacher: Juan Carlos Segura

CORTEZ BARCELO CUAUTEMOCLOPEZ MEZA DELIA MARIA

LOPEZ MORENO MIRIAMSANCHEZ SANCHEZ JAZMIN