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Scotiabank Inverlat S. A. de México automatiza los procesos de fondos mutuos con el sistema de gestión de inversiones Charles River

Simplifica el flujo de trabajo; asegura el cumplimiento de todos los títulos e instrumentos de deuda locales e internacionales

21 de octubre de 2010 – Charles River Development (Charles River), un proveedor de soluciones de software de inversión para las áreas de gestión, operación, cumplimiento, riesgos, cálculos de medidas de desempeño, atribuciones, análisis de riesgos, y tecnología de la información (front-and middle-office), anunció hoy que Scotiabank Inverlat, S.A. (Scotiabank México), uno de los grupos bancarios más grandes de México, ha implementado el sistema de gestión de inversiones (Charles River IMS) a través de su subsidiaria Scotia Fondos. El proyecto de fases múltiples, entregado puntualmente, es parte de la iniciativa de Scotia Fondos para automatizar sus procesos de Fondos de Inversión locales e internacionales con 16 opciones de cartera diferentes en una única plataforma consolidada.

Los usuarios de Scotia Fondos se benefician de herramientas avanzadas de toma de decisiones y análisis, gestión de cartera y transacciones automatizadas, y supervisión del cumplimiento previo a la transacción en tiempo real de todas las clases de activos, incluso capitales, mercados monetarios, fondos mutuos, así como también instrumentos de renta fija corporativos y gubernamentales mexicanos, tales como Bonos, CETES y UDIBONOS. Durante el proyecto inicial, Charles River automatizó los procesos de gestión y transacciones de cartera de capitales de Scotia Fondos, así como la supervisión del cumplimiento. La segunda fase consolidó las capacidades a lo largo de los procesos de renta fija de la empresa.

“Necesitábamos un sistema ultramoderno y un proveedor con experiencia comprobada en apoyar las necesidades de los gestores de activos de México; Charles River entregó ambos”, dijo Ernesto Diez, Director General, Scotia Fondos. “Nuestros gestores de carteras ahora pueden estar a la cabeza del mercado al analizar e implementar rápidamente los cambios en las carteras. También podemos validar que nuestras carteras cumplan con todas las obligaciones, en cualquier momento y para cualquier clase de activo”.

El respaldo a los numerosos requisitos del mercado local de México fue crucial para este proyecto. Charles River IMS permite a Scotia Fondos gestionar y ejecutar transacciones para todos los instrumentos de deuda gubernamentales y corporativos mexicanos. Los operarios de fondos mutuos de la empresa también pueden ejecutar préstamos de valores, dar apoyo a contratos de recompra y reequilibrio contra los índices mexicanos. Además, la arquitectura abierta de Charles River facilita a Scotia Fondos integrarse con su sistema de contabilidad propietario, así como con proveedores de servicios de apoyo administrativo (back-office), tales como Bloomberg para cotización en tiempo real, y Valmer, propiedad de la Bolsa de Valores mexicana, para información de riesgo.

Charles River IMS da apoyo a tipos de títulos específicos para la región y flujos de trabajo asociados, incluso certificados de inversión corporativos y gubernamentales mexicanos. En un futuro cercano, Scotia Fondos continuará con la implementación de la funcionalidad de cobertura y cálculos de exposición de derivados avanzados de Charles Rivera IMS, para ayudar a sus clientes a cumplir con la reglamentación mexicana, como las reglas de la Comisión Nacional Bancaria y de Valores (CNBV), al hacer una supervisión y gestionar la exposición previa y posterior a la transacción de instrumentos derivados. Las bibliotecas prefabricadas de cumplimiento de Charles River contienen más de 1.700 reglas de ejemplo generales y normativas a lo largo de 35 organismos reguladores de 20 países, incluso una biblioteca completa de reglas para México.

“Charles River proporciona a los gestores de activos en México soluciones sofisticadas pero fáciles de usar para expandir sus operaciones a nuevas clases de activos y mercados, para entregar una ventaja competitiva que respalda el crecimiento comercial”, dijo Spiros Giannaros, Vicepresidente de Ventas, Americas, Charles River Development.

Charles River brinda apoyo a cinco empresas clientes en México, y presta servicios a más de una docena de empresas a lo largo de Brasil, Chile, y Panamá.

Fuente: CRD 21.10.2010

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Filed under: Data Management, Latin America, Mexico, Risk Management, , , , , , , , , , , , , , , , ,

Mexico’s Scotiabank Inverlat, Automates Mutual Fund Operations with the Charles River Investment Management System

Streamlines workflows; ensures compliance for all local/international securities and debt instruments

October 21, 2010 – Charles River Development (Charles River), a front- and middle-office investment software solutions provider, today announced that Scotiabank Inverlat, S.A. (Scotiabank Mexico), one of Mexico’s largest banking groups, has implemented the Charles River Investment Management System (Charles River IMS) across its Scotia Fondos subsidiary. The multi-phased project, delivered on-time, is part of Scotia Fondos’ initiative to automate its domestic and international mutual fund (Fondos de Inversion) operation with 16 different portfolio options on a single, consolidated platform.

Scotia Fondos’ users benefit from advanced decision-making and analysis tools, automated portfolio management and trading, and real-time, pre-trade compliance monitoring for all asset classes, including equities, money market, mutual funds, as well as Mexican corporate and government fixed income instruments, such as Bonos, CETES and UDIBONOS. During the initial project, Charles River automated Scotia Fondos’ equity portfolio management and trading operations, as well as compliance monitoring. The second phase consolidated capabilities across the firm’s fixed income operations.

“We required a state-of-the-art system and a vendor with proven experience in supporting the needs of Mexico’s asset managers; Charles River delivered both,” said Ernesto Diez, Director General, Scotia Fondos. “Our portfolio managers can now stay ahead of the market by analyzing and rapidly implementing changes to portfolios. We can also validate that our portfolios comply with all mandates – at any time and for any asset class.”

Support for Mexico’s numerous local market requirements was critical to the project. Charles River IMS allows Scotia Fondos to manage and execute trades for all Mexican government and corporate debt instruments. The firm’s mutual fund traders can also execute stock lending, support repurchase agreements and rebalance against Mexican indices. In addition, Charles River’s open architecture makes it easy for Scotia Fondos to integrate with its proprietary accounting system, as well as back-office providers, such as Bloomberg for real-time pricing, and Mexican Stock Exchange-owned Valmer for risk data.

Charles River IMS supports region-specific security types and associated workflows, including Mexican corporate and government bonds. In the near future, Scotia Fondos will continue with the implementation of Charles River IMS’ advanced derivatives exposure calculations and coverage functionality helping clients comply with Mexican regulations, such as Comision Nacional Bancaria y de Valores (CNBV) rules, by monitoring and managing pre- and post-trade exposure to derivatives instruments. Charles River’s pre-built compliance libraries contain over 1,700 regulatory and general example rules across 35 regulatory bodies of 20 countries, including comprehensive rule libraries for Mexico.

“Charles River offers asset managers in Mexico sophisticated, yet easy-to-use solutions for expanding their operations into new asset classes and markets – delivering a competitive advantage that supports business growth,” said Spiros Giannaros, Vice President of Sales, Americas, Charles River Development.

Charles River supports five client firms in Mexico, and serves over a dozen firms across Brazil, Chile, and Panama.

Source: CRD, 21.10.2010

Filed under: Brazil, Chile, FIX Connectivity, Latin America, Mexico, News, Risk Management, , , , , , , , , , , , ,

Mexico Central Bank prohibit some Lender/Credit/Banking Fees

July 21 (Bloomberg) — Mexico’s central bank said it will prohibit commercial banks from applying some fees in a bid to make charges more transparent and bolster competition.

Starting Aug. 21, banks won’t be able to charge fees for depositing checks that are returned, for exceeding debit card limits or for canceling deposit accounts, credit cards, debit cards or online banking services, the central bank said today in an e-mailed statement.

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The measures may force Mexican banks to issue more loans to compensate for revenue they currently get from fees, which may open up credit channels that seized up amid the global financial crisis, said Gabriel Casillas at UBS AG in Mexico City. Fees and commissions accounted for 20 percent of the Mexican banking industry’s operating revenue in 2008, Standard & Poor’s says.

“This is an important blow to one of the biggest sources of revenue for Mexican banks,” said Casillas, who is chief economist for Mexico and Chile. “This should give them an incentive to increase credit and obtain revenue from there.”

Banco Bilbao Vizcaya Argentaria SA, which controls Mexico’s largest lender BBVA Bancomer SA, fell 1.4 percent to 9.675 euros at 12:15 p.m. New York time from 9.81 euros at 10 a.m., when the measures were announced.

Banks will also be unable to charge customers for opening or managing accounts that were opened in order to receive a loan, the bank said.

Antitrust Chief

Mexican antitrust chief Eduardo Perez Motta said in a July 17 interview that authorities needed to make it easier for customers to switch banks so they could more easily shop for low-cost services, which would in turn boost competition.

“When you tell your bank you want to leave, they make your life difficult,” Perez Motta said.

Still, Angelica Bala, an S&P credit and banking analyst in Mexico City, said increased regulations won’t improve competition or transparency.

“The central bank is doing this because there has been a big political push against banks charging so much for fees and commissions,” Bala said in a telephone interview. “But putting a cap on fees and commissions is not a good thing. It has to be driven by competition.”

Source: Bloomberg, 21.07.2009 by : Jens Erik Gould in Mexico City at jgould9@bloomberg.net.

Filed under: Banking, Latin America, Mexico, News, Services, , , , , , , , , , , , , ,

Is Mexico’s New Banking Bill a sign of worse things to come in International Banking Regulations?

A proposal to regulate fees charged by banks operating in Mexico won’t put a big dent in Bank of Nova Scotia’s (BNS) bottom line, but it could be a sign of worse things to come, as banking rules around the world begin to tighten in the wake of the financial crisis.

Brad Smith, Blackmont Capital analyst said:

As of the year-end 2008, Scotia’s Mexican operations were responsible for 9% of total earnings and while this legislation could impact on Scotia’s total operations to be marginal at this time.

The greater concern, in our view, is that this is merely an initial step in increased international regulation of the financial industry, thereby putting increased strain on future profits.

The new banking bill passed by the Mexican Senate, but still required to pass through the lower house, proposes ceilings on credit card and loan interest rates and also seeks to regulate deposit rates and eliminate certain banking fees.

Mr. Smith continues to rate Scotiabank shares a “hold” and left his C$36 price target unchanged.

Source: SeekingAlpha, 23.04.2009

Filed under: Banking, Latin America, Mexico, News, Risk Management, Services, , , , , , , , , , , ,

Mexican Senate to limit Excessive Credit Card charges by foreign banks, observed by U.S. Senate

[16.04.2009] Mexico’s Senate banking committe approved changes to the financial services law. The Central Bank will be allowed to set limits on the rates that commercial banks can charge on loans.

Banco de Mexico will not set of specific limits to rates; instead, the central bank will set references as to how much banks should be charging for the loans and also have the ability to highlight to the public which banks are charging more than others. “Banco de Mexico will ensure that institutions give loans or credit in accessible and reasonable conditions, and it will take corrective measures so that operations are offered under those terms,” the bill says.

The initiative will now move to the floor of the Senate. The bill doesn’t specify a maximum interest rate. Instead, it calls for policy makers to cap interest rates if they are deemed to be too high or if they prevent low-income Mexicans from obtaining credit.      The legislation would prohibit banks from charging fees that “distort healthy banking practices,” according to the initiative. Banks wouldn’t be able to charge fees for consulting account balances under the measure.

Source: IXE 16.04.2009

[26.03.2009] Two Mexican Senate committees approved proposals to overhaul financial sector regulations that if passed into law would give authorities greater scope to limit the interest rates and commissions that banks charge their customers.

Mexico is not alone. The U.S. Senate Banking Committee will meet on March 31 to consider pro-consumer credit card legislation.

The current credit cards comissions and interest rates in Mexico, charged by foreign banks are the higest in the World and cause to great concern for social instability, for example:

HSBC                 charges 72% p.a. in Mexico  vs.  16%  in the UK

ScotiaBank     charges 61% p.a. in Mexico vs.  18%  in Canada

BBVA                 charges 80% p.a. in Mexico vs. 25% in Spain

Citi/Banamex charges 77% p.a. in Mexico vs.   9% in the US

According to Mexico Bankers Association (ABM) in 2008 there where  26.2 milion credit card holding individuals, which spend  478 Bn pesos ( 33.7 bn US$).

Credit cards might as well be the next bubble to burst, see the Reuters special on consumer credit concerns.

The Finance Commission and the Legislative Studies Commission approved the bill late Wednesday with the backing of senators from the three largest political parties. The commissions said they hope to submit a final draft to the full Senate as soon as possible, according to a Senate press release.

The measure would then be sent to the lower house. The plan would give the Bank of Mexico greater power to regulate commissions and interest rates, ban fees for checking balances at bank branches and require lenders to offer a basic credit card product without “excessive charges.”

Fees and commissions of close to 56.3 bn pesos (3.97 bn US$) last year accounted for about 27% of banks’ operating income, according to National Banking and Securities Commission data.

Five of Mexico’s top seven banks are owned by foreigners. Banco Bilbao Vizcaya Argentaria SA (BBV) and Banco Santander SA (STD) of Spain, Citigroup Inc. (C) of the U.S., HSBC Holdings PLC  ( HBC) of the U.K., and Canada’s Bank of Nova Scotia (BNS) control 68% of bank loans and 69% of deposits.

Source: El Financiero, El Economista,Dow Jones,Reuters,AFP  26.03.2009

Filed under: Banking, Mexico, News, Risk Management, , , , , , , , , , , , , , , ,

Mexico: Foreign banks highest charges, lowest services

According to a survey by “La Expansion/CNN” the service quality of the 8 biggest banks in Mexico (Banamex, BBVA-Bancomer, HSBC, Santander, Scotiabank, Banorte, Ixe and Inbursa) scored an average of 6 out of 10 in service quality.

IXE Bank led with 8.6 score as the best and most customer friendly service provider, while CitiBanamex and HSBC where below average.  The 8 banks cover 80% of the Mexican market.

According to the survey the bank clients rated woerse the commisions the banks are charging for the value added (or the abscence of it) by the financial service providers.

See the rating chart below: 10 = excellent, 9 = very good, 8 = good, 7= average, 6 = sufficent, below 6 = failed.

Source: La Expansion, FiNETIK,  19.03.2009

Filed under: Banking, Mexico, News, Risk Management, , , , , , , , , , , ,

Hits and Errors of Risk Management in the Crisis – 1st Mexico PRMIA Event for 2009 a Success

The first event for PRMIA Mexico in 2009, “Hits and Errors of Risk Management in the Crisis” was hosted by BMV  the Mexican Stock Exchange, headquartered on the prestigious Paseo de la Reforma located at the financial heart of Mexico City.

Carlos Kretschmer, Director Head of Capital Markets at Scotia Bank Inverlat, the sponsor Institution, welcomed more than 220 delegates and guests who attended last Thursday, March 5th, to learn and discuss with a panel of four well known risk managers speakers with great background in theory and practice on risk management.

Juvencio Ramírez, representing Banco de Mexico, prepared and presented: “Current Status of Financial Risk Management “ and “The Mexican Financial System and the Subprime Crisis: Contagion or Defense? – A Liquidity Risk Perspective”.

On behalf Banamex Citibank, Carlos Vallebueno talked about the “Origin and Evolution of the First Global Crisis. Heleodoro Ruiz, Credit Risk Manager at Banorte, followed and focused on the “Common Elements in the Crisis and Lessons Learned – A Credit Risk Perspective”.

Jorge Galindo, CEO of HiTo and Regional Manager of PRMIA Mexico, completed the conference providing the audience with information and details about PRMIA organization. Right after that, the experts opened the panel for discussion and to respond all delegates’ questions.

At the end of the event, the large group of professionals representing national e international bank institutions in Mexico, mortgage and insurance companies, private corporations, among many others, enjoyed a cocktail outside of the Mexican Stock Exchange Auditorium where they were able to exchange points of view and give a pleasant close to a very interesting evening.

Download the Speaker presentations below:
Juvencio Ramirez, Banixco ( Estado Actual de la Admon de Riesgos Financieros )
Juvencio Ramirez, Banixco ( El Sistema Financiero Mexicano y la Crisis de la Suprime )
Carlos Vallebueno, Banamex ( Aciertos y Errores en la Administracion de Riesgos )
Heleodoro Ruiz,  Banorte  ( Impacto Altamente Improbable )

Jorge Galindo,  HiTo ( PRMIA – Credit Risk Management in Times of Economic Stress )
Jorge Galindo, HiTo ( PRMIA Overview )

Source: PRMIA Mexico, 10.03.2009

Filed under: Banking, BMV - Mexico, Latin America, Library, Mexico, News, Risk Management, , , , , , , , , , , , , , , ,