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Journal Article
Liberalization, privatization, and crash: Mexico's banking system in the 1990's
Although Mexico's 1994 peso devaluation and subsequent capital outflows shook the nation's banking system, the foundations of the banking crisis were laid much earlier. ; Econometric evidence suggests that in the wake of the 1991-92 bank privatizations, Mexico's banks entered a market share struggle in which they incurred short-term losses at the margin, perhaps in the interests of greater expected gains over the long term. ; Euphoric investor behavior and a rising economy may have aggravated the situation by making risky borrowers more difficult to identify.
Working Paper
Privatization, competition, and supercompetition in the Mexican commercial banking system
Economic Research Working Paper 9904