U.S. Banks Push for Access to Mexico, Canada Markets

By Kraus, James R. | American Banker, October 7, 1991 | Go to article overview

U.S. Banks Push for Access to Mexico, Canada Markets


Kraus, James R., American Banker


U.S. bankers are stepping up their lobbying efforts for the authority to offer full banking services in Mexico and Canada.

The American Bankers Association recently submitted a list of demands to the U.S. Trade Office, which is representing the government in negotiations for a proposed North American free-trade agreement. Among the powers sought: branching and investment banking rights and entry to payment systems.

"In simple terms, U.S. bankers want to be free to do business in Mexico on an equal footing with your banks," C.G. Kelly Holthus, a former president of the ABA, said in a speech at the annual convention of the Mexican Bankers Association in Acapulco last week.

A number of U.S. banks have designs on Mexico, for different reasons.

Bankers say large U.S. institutions such as J.P. Morgan & Co. and Chase Manhattan Corp. are mainly interested in handling trade and corporate finance, underwriting and distributing securities, arranging mergers and acquisitions, and supplying private banking and complex derivatives such as currency swaps and options.

Some, such as Citicorp and BankAmerica Corp., are also interested in building retail banking networks in Mexico, bankers say.

Several Southwest institutions -- including NCNB Texas National Bank and Chemical Banking Corp.'s Texas Commerce Bancshares Inc. -- would like to expand retail operations, foreign exchange, and lending, as well as do trade finance and process cross-border payments.

One-Way Restrictions

The bank's lobbying efforts underscore the growing resentment over restrictions on activities in Mexico and Canada.

Canada obliges foreign banks to set up locally incorporated subsidiaries, while Mexico bars foreign banks from retail activities or having more than representative offices.

The single exception in Mexico is Citicorp, with four branches grandfathered under Mexican law in the 1930s.

Meanwhile, there are no similar limitations on Canadian or Mexican banks doing business in the United States.

"What we'd like to see is some reciprocity," said Alfonso Martinez-Fonts, president of Texas Commerce Bank-San Antonio. "right now the situation is such that the U.S. door is totally open and the Mexican door is totally shut."

U.S. banks are keen to spell out early on what they want from the North America agreement, because many feel the 1989 free-trade accord with Canada failed to produce any substantial gains. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

U.S. Banks Push for Access to Mexico, Canada Markets
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.