Wal-Mart to open bank in Mexico

Source: Exec Digital USA

Date :03/10/2007 06:05:30

Wal-Mart says it has cleared the final regulatory hurdle to opening its own bank in Mexico.

Wal-Mart de Mexico SA, the country's largest retailer and private-sector employer said the National Banking and Securities Commission on Monday authorized it to start banking operations.

The new bank which will operate under the name Banco Wal-Mart de Mexico Adelante ay open as soon as November.

Wal-Mart de Mexico's chief executive Eduardo Solorzano said: “With Banco Wal-Mart we will be able to complement the services we provide to the segment of the population that currently lacks the benefits of having accessible banking services.”

Wal-Mart de Mexico currently has 964 commercial units in Mexico, including "supercenters," restaurants and Sam's Clubs.

Banking operation

It is the second chain to receive permission from the commission to launch a new banking operation.

Mexican financial services and retail company Grupo Elektra opened Banco Azteca in October 2002.

Earlier this year Wal-Mart pulled out of plans to obtain a US banking license after massive controversy.

Wal-Mart had planned to create an in-house bank in the US, known as an industrial loan corporation (ILC).

However, in February it decided to withdraw the application after opposition from unions, consumer groups and some state-level banks who believed the move would threaten local businesses.

October 3 2007

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