BajaNomad

Mulege bank closing

HeyMulegeScott - 10-13-2022 at 05:39 PM

Sad to see the BBVA closing down tomorrow in Mulege. No ATM in town now.

HeyMulegeScott - 10-14-2022 at 09:26 AM

Quote: Originally posted by lencho  
Quote: Originally posted by HeyMulegeScott  
Sad to see the BBVA closing down tomorrow in Mulege. No ATM in town now.
So now you have to go to Santa Rosalía for cash? :(


Yep or Loreto. There is rumour that OXXO might be coming to town and they have options for cash pickup through xoom or Western Union but max draw is 2000 pesos. This is really bad for locals and businesses most of whom operate using cash.

4x4abc - 10-14-2022 at 01:27 PM

capitalism in its purest form

David K - 10-14-2022 at 02:15 PM

Maybe more of a case of needless and restrictive government regulations that prevents more banks from opening in Mexico, more free-enterprise, more competition. Just think, if Mexican banks could loan money to small businesses, to help them grow!

mtgoat666 - 10-14-2022 at 02:22 PM

Quote: Originally posted by David K  
Maybe more of a case of needless and restrictive government regulations that prevents more banks from opening in Mexico, more free-enterprise, more competition. Just think, if Mexican banks could loan money to small businesses, to help them grow!


How do you know regulation is preventing opening new banks?
Who says banks cant loan to SBs?

Tell us more, you sound like you have deep expertise in mexican banking. Where did you get your insight?

John Harper - 10-14-2022 at 03:11 PM

DK seems to be correct. So much of Mexico's economy is informal (60%!), which means lack of credit history and other factors make it hard for banks to issue loans to small businesses.

I found this regarding loans to SME (small/medium enterprises) in Mexico. Mexico is behind where it should be compared to similar size economies:

https://www.euromoney.com/article/b1b2yzrpdhmn9f/mexican-ban...

An interesting read. Thanks, DK!

John

[Edited on 10-14-2022 by John Harper]

David K - 10-14-2022 at 04:37 PM

The problem, I was told by a busnessman, was the law on collateral... banks can't hold paper (such as the car's 'pink slip') while you pay back the loan.

John Harper - 10-14-2022 at 04:44 PM

Quote: Originally posted by David K  
The problem, I was told by a busnessman, was the law on collateral... banks can't hold paper (such as the car's 'pink slip') while you pay back the loan.


Yes, putting up collateral is mentioned in the article. Imagine if you are part of an ejido? How do you collateralize your share?

And we've all read about title nightmares that pop up years, sometimes decades later.

Let's not forget how many US farms were lost to banks during the Dust Bowl and Depression. Wasn't that what made Bonnie and Clyde folk heroes? Robbing the robbers of people's livelihoods?

John

[Edited on 10-14-2022 by John Harper]

Mula - 10-15-2022 at 05:23 AM

Maybe a Banco Bienestar - https://www.gob.mx/bancodelbienestar - will come into Mulege.
We have one here in Insurgentes.
Easy to open an account and you can open an account with just your US Passport.
I aam nationalized, but a friend who lives in Lopez Mateos opened an account with just his US passport.

[Edited on 10-15-2022 by Mula]

surabi - 10-15-2022 at 09:49 AM

Quote: Originally posted by HeyMulegeScott  


Yep or Loreto. There is rumour that OXXO might be coming to town and they have options for cash pickup through xoom or Western Union but max draw is 2000 pesos. This is really bad for locals and businesses most of whom operate using cash.


If you have a Mexican bank account, you can deposit and withdraw cash at any OXO, no need for Xoom or Western Union.

The resistance to having a Mexican bank account, when you live in Mexico, at least a large part of the year, makes things more difficult, just as being a resident anywhere with no bank account in that country would be.

I've had a Bancomer acct. for 16 years and never had any issues with them.

John Harper - 10-15-2022 at 11:12 AM

Quote: Originally posted by surabi  
Just as being a resident anywhere with no bank account in that country would be.


Yep, that's how these pay day loan places have flourished, and exploited so many people here in the USA. Extracting millions in "service fees" that you could avoid with a regular bank account.

Mexico isn't the only country plagued by financial ignorance.

John

bajatrailrider - 10-16-2022 at 09:59 AM

Well Well Bankcomer Ensenada even more bad Santander. Oxxo send or get money 8,000 pesos . Per person per day at same oxxo banks in Mexico avoid anyway . What will I do living here full time cash baby screw these banks . Long lines 6 teller windows one person working . Teller cannot tell you whats in your account get in another long line. Now sat blocks Money bankers do not know what there doing . Welcome To Mexico not to say I have not had problem with Chase bank. At least resolved quickly wells fargo so far better choice.

AKgringo - 10-16-2022 at 11:29 AM

Slightly off topic, but I went to a Banorte (sp?) branch in La Paz Friday to convert dollars to pesos. They wouldn't do it!

I then went to the Walmart near there, which also refused to convert, but would take dollars in payment for goods.

The ATM there still worked for me, but that was a last resort since I have had problems with them before with showing the same transaction as a withdrawal, and an equal amount pending for about a week or so.

AKgringo - 10-16-2022 at 06:49 PM

In 2016, I met up with two other Nomads in Mulege for a central Baja loop run. (I was the SAG wagon). When we got done a couple of day later, I was unable to withdraw pesos from the ATMs in Mulege, and Loreto. They also would not do a currency exchange at the teller's windows.

I don't remember what the currency problem was at the time, but I was still able to trade money at a bank in La Paz....I think it was the same one that said no to me this Friday!

4x4abc - 10-16-2022 at 07:09 PM

financial institutions are not in the business to make you many
they are in the business to make money for their investors
it is you they are taking it from

new twist in money transfers to Mexico
in theory money is moved from one point to another by the click of a button
has been that way for a few decades now
but they all tell you, it will take a few business days

Wise used to be the quickest - now hours or days delay
Paypal used to be kinda fast - now 7 days to Mexico (in addition to the 19.1 exchange rate) - recently $50 in fees and x rate for a $200 transfer.
Airbnb pays you a day after your guests have checked in - used to be same day (not counting that they get paid when the guest books months or weeks before)

capitalism is still a good model
but it needs to be regulated and supervised

AKgringo - 10-16-2022 at 07:20 PM

By the way, I found a Cambio in Loreto, open on Saturday and was able to exchange three hundred US dollars.

The rate was 19/1, with no additional fees. They are right accross the street from one of the larger grocery stores {Pescado, or Pescador?)

A picture ID, plus either a passport, perm resident, or temp resident papers are required!

BajaTed - 10-17-2022 at 09:22 AM

Until the sanctity of a contract in Mexico is honored by the legal system nothing will ever be stable monetarily.

Hook - 10-17-2022 at 07:23 PM

Quote: Originally posted by surabi  
Quote: Originally posted by HeyMulegeScott  


Yep or Loreto. There is rumour that OXXO might be coming to town and they have options for cash pickup through xoom or Western Union but max draw is 2000 pesos. This is really bad for locals and businesses most of whom operate using cash.


If you have a Mexican bank account, you can deposit and withdraw cash at any OXO, no need for Xoom or Western Union.

The resistance to having a Mexican bank account, when you live in Mexico, at least a large part of the year, makes things more difficult, just as being a resident anywhere with no bank account in that country would be.

I've had a Bancomer acct. for 16 years and never had any issues with them.


You might be the first person I've heard of that has good things to say about Bancomer. Especially those who owned trusts through them and their thoroughly incompetent trust department.

surabi - 10-17-2022 at 09:00 PM

Well, I've never had a trust through them. It's just a regular bank account that I deposit, withdraw and transfer through. The only time they ticked me off was years ago when they raised the minimum amount to keep in the account so as not to incur service charges. I happened to be in Canada at the time and they didn't send out any email advising customers of the change, so I found 300 pesos in service charges docked from my account.

Other than that, no hassles. Their online banking site works fine, only once or twice had their site be unresponsive due to some tech issue, and I know which branches in my area are run more efficiently as to having enough tellers to not have to stand in line for ridiculous amounts of time if I actually need to do in person business.