Members

Nacional Financiera, S.N.C.

Organization and Objective

Nacional Financiera, S.N.C., (Nafinsa) was established in 1934 by the Mexican Government as a Development Banking Institution that operates in accordance with its Organic Law, the Law of Credit Institutions, the rules issued by the National Banking Securities, the Law of Banco de México and the General Law of Public Debt.

The objectives of Nafinsa are to promote the overall development and modernization of the industrial sector with a regional approach; stimulate the development of financial markets and act as financial agent of the Federal Government in the negotiation, hiring and administrating loans from abroad.

Nafinsa carries out its operations in accordance with financing criteria applicable to development banks, channelling its funds mainly through commercial banks and non-banking financial intermediaries. The main sources of Nafinsa’s funding are the placement of securities in the domestic markets as well as loans from international development institutions such as the International Bank for Reconstruction and Development (IBRD), the Inter-American Development Bank (IDB) and credit lines from foreign banks.

The operating structure of Nafinsa abroad includes one branch in London, UK.

Nafinsa's efforts have been directed to develop a solid financial system and improved financial intermediation by promoting domestic savings towards further new investment in the industrial, commercial and service sectors. Today, the worldwide global economic strategy has resulted in Mexico's development banking system becoming specialized and the role of participating institutions, particularly Nafinsa, is to support the modernization of key economic sectors, and to promote them in the world markets.

Business Model

In our second-tier loan and guarantee programs, the intermediary financial institutions serve as our agents by extending loans to the ultimate borrowers, enabling us to increase the size of our loan portfolio without significant additional operating expenditure.

Each intermediary financial institution places and services loans using our available credit lines and directly approves each loan application.

Since the intermediaries bear the credit risk of the ultimate borrowers, our credit risk with respect to such loans is to the intermediary financial institution and not to the ultimate borrower.

In our second-tier loan and guarantee programs, each intermediary financial institution directly approves each loan application which reduces NAFIN’s credit risk exposure by having a double approval process.

 

NAFIN’s key objectives

  1. Increase access to financing on better terms, as well as provide more business services to MSMEs and entrepreneurs to foster productivity.
  2. Support the development of long-term projects in priority and high impact sectors, in coordination with other development banks.
  3. Promote the regional and sector – based development of Mexico through the offering of differentiated products, either directly or through our network of intermediaries.
  4. Contribute to the development of the Mexican financial markets through innovative instruments and mechanisms as sources of financing for MSMEs.
  5. Maximize the impact on economic development while ensuring our long-term sustainability.
  6. Maintain a flexible and innovative support and management structure with trained human resources that enable us to promote public policy objectives.
  7. Develop a results-oriented management that allows us to improve our impact on economic development.

 

Financial results

The next summary indicates some main indicators obtained by NAFINSA operations during this year and reflects the trends of financial results over the recent years:

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