Mexico to unveil banking reform next week

Mexico's government wants to boost lending by making it easier for banks to collect on guarantees for bad loans and by giving regulators new powers to punish firms that do not lend enough, according to a draft of a new banking reform.

The proposal is due to be announced next week and is part of a raft of measures designed to ramp up growth in Latin America's second largest economy.

The financial reform proposal targets Mexico's conservative banks, which boast high capital levels but lend much less than their foreign peers.

Source: Reuters