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

  • Pedro I. González Ramírez Universidad Autónoma de San Luis Potosí
  • Leobardo Plata Pérez Universidad Autónoma de San Luis Potosí
Keywords: ATM machines, ATM fees, Regulations
JEL Classification: D40, G21, L51

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.

References

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Published
01-01-2015
How to Cite
González Ramírez, P., & Plata Pérez, L. (2015). Theoretical analysis of the modifications to the regulation of interbank commissions at ATMs in Mexico. Estudios Económicos, 30(1), 141-178. https://doi.org/10.24201/ee.v30i1.25