Texas Banks Are Targets for Mexican Buyers

By Greef, Charles E.; Hidalgo, Greg | American Banker, June 15, 1994 | Go to article overview

Texas Banks Are Targets for Mexican Buyers


Greef, Charles E., Hidalgo, Greg, American Banker


With passage of the North American Free Trade Agreement, there is a growing interest among Mexican banks and investors about entering the United States banking market.

The Texas banking market offers attractive opportunities for a Mexican bank investor to acquire a U.S. financial institution. Entry of Mexican banks and investors into the Texas banking market will benefit Texas banks by enlarging the pool of possible buyers for banks that wish to sell.

In addition to its geographic proximity and historical ties to Mexico, several other factors make Texas a logical market for Mexican banks and investors. Texas has a large number of potential target banks, a favorable regulatory environment and comparatively low prices as compared to other banking markets in the United States.

Texas has 1,100 commercial banks. At any given time, a number of these banks are actively for sale and many others can be bought "for the right price." An interested purchaser, as a result, can usually find a target bank of the size and in a location the purchaser desires.

Texas offers Mexican banks and investors alike a favorable regulatory environment. The Texas Banking Code has been construed to permit non-U.S. holding companies to acquire commercial banks in Texas.

In addition, Texas permits statewide branching. As a result, once a Mexican bank or investor group acquires a commercial bank in Texas, the bank can branch into any other town or city in the state following a relatively quick and routine procedure by the bank's primary regulator. Texas also permits non-U.S. citizens to be directors of Texas state banks.

Mexican Investor Acquisitions

Federal and state law have permitted the ownership of a commercial bank in Texas by non-U.S. citizens for many years. Mexican investors have been involved in the ownership of Texas banks for many years.

Mexican investors are subject to the same regulatory approval process as U.S. citizens. Mexican investors must receive regulatory approval from the bank's primary federal regulator under the Change in Bank Control Act prior to obtaining "control" of a U.S. bank, whether it be a state or a national bank.

Mexican investors must also comply with the applicable change-in-control provision of the Texas Banking Code. Change-in-control approval for a foreign investor often takes somewhat longer than for a U.S. citizen due to the time-consuming process of completing the required background checks with foreign regulatory agencies.

The Board of Governors of the Federal Reserve System governs entry of foreign banks into the U. …

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
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 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 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.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Texas Banks Are Targets for Mexican Buyers
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
Items saved from this article
  • Highlights & Notes
  • Citations
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.”

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 8, MLA 7, 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." (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.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    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.