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Mexican market tumbles over plan to slash bank fees

Friday, November 9, 2018

Mexico's main stock index tumbled nearly 6 per cent on Thursday after President-elect Andres Manuel Lopez Obrador's party introduced legislation to dramatically slash the fees banks can charge clients.

Dragged down by banking stocks, the market index slid 6.18 per cent after Senate majority leader Ricardo Monreal introduced the bill, before recovering ground slightly to close down 5.81 per cent. The peso also weakened 1.2 per cent against the dollar.

Monreal said the bill would eliminate or curb "excessive" fees that banks in Mexico charge for things including ATM withdrawals, late payments on credit cards, annual fees, inter-bank transfers and business use of credit card terminals.