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Mexico: COFECE probes Big Banks’ credit rating ties

By  |  February 20, 2018

Mexico’s competition regulator COFECE notified the main banks operating in the country, such as Spanish-owned Bancomer, HSBC, Citi-Banamex, and Scotiabank Inverlat of a new probe over alleged monopolistic practices in the generation, processing and marketing of consumer credit information.

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    Information was also requested from the Credit Information Societies TransUnion de México, Sociedad de Información Creditícia and Dun & Badstreet.

    According to data from the agency, there are three credit information companies that are authorized to operate in the country: TransUnion de México, Dun & Bradstreet and Círculo de Crédito. The first two, TransUnion and Dun & Bradstreet, operate under the Buró de Crédito brand, are managed by the same group of managers and have common shareholders for about 74% of the shares.

    The Commission explained that the ownership of Buró de Crédito is currently in the hands of the country’s main banks, which hold about 70% of shares. In particular, the reluctance of larger banks to share information with other credit institutions could manifest as anticompetitive decisions by the board of directors of the Buro de credito.

    Full Content: El Vigia

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