| | |  Business News | September 2008 
Mexico's Su Casita To Adopt Broader Financial Services Operation
 Ken Parks - Dow Jones
go to original
Mexico City - Mexico's largest home finance company Hipotecaria Su Casita SA plans to change its concession in a move that will allow it to offer a broader range of financial services.
In a filing with the Mexican Stock Exchange late Monday, Su Casita said it will switch to a multiple purpose finance company license from its current limited purpose license.
As a multiple purpose financial company, Su Casita will be able to provide financial products, such as credit cards and personal loans, outside of its core mortgage business.
However, under Mexican law limited purpose and multipurpose finance companies are prohibited from taking deposits from the public, which can put them at a funding disadvantage versus banks.
Su Casita's decision to broaden its potential operating scope comes after majority shareholder Caja Madrid, a major Spanish savings bank, announced in July that it would buy the 60% stake it didn't already own in the company for $342 million.
Mexican banks and finance companies have enjoyed a boom in mortgage and credit card lending the last five years, although growth has slowed since last year as the economy cools and lenders adopt stricter credit standards.
ken.parks(at)dowjones.com |
|
| |
Vallarta Weddings
Tell a Friend
Site Map
Print this Page
Email Us