While this notion may be sensible if it is the result of a natural market evolution, it becomes risky if it implies the application of policy measures that introduce distortions and inefficiency. Some diversification of Mexico’s trade and investment relations may continue to occur as a natural outcome of more global trade opening and better transport and communications possibilities.
First, our reforms are designed to reduce the probability that large financial institutions will fail by requiring those institutions to make themselves more resilient to stress. However, we recognize that we cannot eliminate the possibility of a large financial institution’s failure.