Mexico: COFECE probes Big Banks’ credit rating ties

Mexico’s competition regulator COFECE notified the main banks operating in the country, such as Spanish-owned Bancomer, HSBC, Citi-Banamex, and Scotiabank Inverlat of a new probe over alleged monopolistic practices in the generation, processing and marketing of consumer credit information.

Information was also requested from the Credit Information Societies TransUnion de México, Sociedad de Información Creditícia and Dun & Badstreet.

According to data from the agency, there are three credit information companies that are authorized to operate in the country: TransUnion de México, Dun & Bradstreet and Círculo de Crédito. The first two, TransUnion and Dun & Bradstreet, operate under the Buró de Crédito brand, are managed by the same group of managers and have common shareholders for about 74% of the shares.

The Commission explained that the ownership of Buró de Crédito is currently in the hands of the country’s main banks, which hold about 70% of shares. In particular, the reluctance of larger banks to share information with other credit institutions could manifest as anticompetitive decisions by the board of directors of the Buro de credito.

Full Content: El Vigia

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