Basel III in Mexico and the Relationship Between Financial Regulation and Financing

Abstract

Financial regulation and financing in Mexico have always been related to the business sector. With the global financial crisis in 2008, the internationally agreed measures to regulate and supervise banks were changed. In this investigation, an analysis of the Basel III agreement and how it is developed in the regulatory scheme towards credit is carried out. The aim is to demonstrate the main variables between the analysis of financial regulation and the Basel III agreement in the sector of micro, small and medium enterprises (MSMEs). This through a deductive method and a qualitative applied methodology. Among the results achieved was found that the business stratum does not request a credit from the bank for different reasons, but mostly because interest rates are high and does not have sufficient solvency to acquire one and pay the debt in a certain period. Finally, although it is recognized that there are supports to provide credit or financing to MSMEs in Mexico, there are still areas of opportunity and issues that should be developed following the recommendations of the Basel III agreement.