Theoretical analysis of the modifications to the regulation of interbank commissions at ATMs in Mexico

Authors

  • Pedro I. González Ramírez Universidad Autónoma de San Luis Potosí
  • Leobardo Plata Pérez Universidad Autónoma de San Luis Potosí

DOI:

https://doi.org/10.24201/ee.v30i1.25

Keywords:

ATM machines, ATM fees, Regulations

Abstract

We analize the regulation established by the Banco de Mexico in 2010 to commissions by interbank transactions at ATMs. Under a space model with a duopoly, we endogenize ATM deployment, account fees and ATM fees. We show that the commissions by interbank transactions remain unchanged. The regulation increase ATM deployment and hence banks’ profits decrease. We found that the regulation increases the price by opening an account as result of banning fees in transactions to own users on own ATMs. Under a scenario of alternative regulation we show that the element of the regulation that switch the equilibrium was banning fees in transactions to own users.

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References

Banco de México. 2010. Reporte sobre el sistema financiero, México.

Chioveanu, I., R. Fauli-Oller, J. Sandonis y J. Santamaría. 2009. ATM Surcharges:Effects on Deployment and Welfare, The Journal of Industrial Economics, (57):3, 613-635.

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Diario Oficial de la Federación. 2010. Circular 14/2010 y 22/2010, dirigida a las instituciones de crédito, sociedades financieras de objeto limitado y sociedades financieras de objeto múltiple reguladas (lunes 26 de julio).

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Published

2015-01-01

How to Cite

González Ramírez, P. I., & Plata Pérez, L. (2015). Theoretical analysis of the modifications to the regulation of interbank commissions at ATMs in Mexico. Estudios Económicos De El Colegio De México, 30(1), 141–178. https://doi.org/10.24201/ee.v30i1.25
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Issue

59-vol. 30 no. 1, january-june, 2015

Section

Articles

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