BANKING ON FAST TRACK IN MEXICO…
Wal-Mart de Mexico plans to open its own full-service, consumer banking branches in 576 Wal-Mart store this July. The Mexican government sees the move as a way to force competition in a market already too controlled by foreign banks. According to Bloomberg:
Wal-Mart, Mexico’s largest retailer by sales, will compete against some of the biggest multinational banks, including Citigroup Inc. and HSBC Holdings Plc, which regulators say lend too little and charge too much in interest and fees. Mexican authorities, including central bank Governor Guillermo Ortiz, say Wal-Mart and three smaller retailers that were granted bank charters can begin to change that.
“These projects will help us have a bigger, deeper banking system,” says Guillermo Zamarripa, who is responsible for issuing banking licenses at the Mexican Finance Ministry.
Foreign banks in Mexico typically charge interest of about 40 percent on credit cards, according to the consumer protection agency that specializes in financial services. Even in riskier developing nations, these rates are too high, Ortiz and other regulators say.
The banks borrow at about 7 percent, making the difference between the two rates several times more than in the U.S.
The average rate on a standard U.S. credit card is 13.4 percent, according to North Palm Beach, Florida-based Bankrate Inc. U.S. banks can borrow at less than 5 percent.
Adding fees, the cost of running credit card debt in Mexico can be as high as 89 percent annually, according to the consumer agency.
Yeah, make it easier for them to be more American by running up even more debt. That’s the ticket. That’ll help the Mexican economy flourish. Right?
yea,atta boy, go, wal-mart thank God for Sam
[...] BANKING ON FAST TRACK IN MEXICO… Wal-Mart de Mexico plans to open its own full-service, consumer banking branches in 576 Wal-Mart store this July. The Mexican government sees the move as a way to force competition in a market already too controlled by foreign banks. According to Bloomberg: Keep reading… Filed under: [...]
Shalom Tom,
Thank you for stopping in, for reading and, most importantly, for taking the time to write a comment. It’s all about the conversation.
Uh, you do know that Sam Walton is dead and wouldn’t recognize his own company, right?
B’shalom,
Jeff