Centre for Commercial Law Studies Queen Mary College, University of London THE MEXICAN EXPERIENCE WITH FINANCIAL SECTOR LIBERALIZATION AND PRUDENTIAL STRUCTURAL REFORM by GERARDO VÁZQUEZ GÓMEZ Abogado (Escuela Libre de Derecho) Dipl. (Instituto Tecnológico Autónomo de México, ITAM – University of Harvard) LLM (University of Warwick), Professor of International Trade Law at the Master´s Program (Escuela Libre de Derecho), Lecturer in ADR´s (Instituto Tecnológico de Estudios Superiores de Monterrey, ITESM, Mexico City Campus) Submitted to the University of London for the degree of Doctor of Philosophy in Law 6th January, 2011 1 THE MEXICAN EXPERIENCE WITH FINANCIAL SECTOR LIBERALIZATION AND PRUDENTIAL STRUCTURAL REFORM 2 Acknowledgements SOLI DEO GLORIA To the Great Designer. Thanks to God, because he had guided me in the efforts in this work To Mami Chelo, In Memoriam To my great pain, my grandmother, with whom I lived more than 15 years of my life, left us on 4th of April of 2010, and I still feel her absence and the space she left on my heart missing her wisdom and her direction. How I wish she could enjoy with me this day here, but I know she does somewhere else. How I wish I could spend another day with her walking at the Asturiano´s Park listening and enjoying her good sense of humour. She was a wonderful woman of strong character and personality who had an important role in my development. To my beloved wife Ania Vázquez Olzacka, the most special person in the world, and to our little ones, our blessings: Izabela and Kayetan Gerardo. To my mother Hilda Gomez Ruiz whom I owe so much, she is a living example that success is possible thanks to hard discipline and determination. There was a time when I hesitated to continue my studies, but thanks to her encouragement I got to the end of this beautiful path. She has always been there with words of wisdom and strength. 3 Furthermore and very specially thanks to… This achievement would not be possible without the kind sponsorship of CONACYT, Mexico (Consejo Nacional de Ciencia y Tecnología) during my stay in the UK. I am very grateful to all the administrative staff. I am greatly indebted for life to my supervisors Professors Joseph J. Norton and George A. Walker of the Centre for Commercial Law Studies (CCLS) in London, for encouraging me to proceed with this thesis, for their great patience and kindness towards me and expending a lot of time to share with me his knowledge and comments on this complex but beautiful, challenging and important area of the international law. To the staff of the Centre for Commercial Law Studies who have been greatly supportive, especially after my leg accident in 2005, which made me delay the submission of this thesis. However, I could always count on their support and encouragement. Special thanks go to my supervisor Professor George Walker again, Professors Takis Trimidas and Loukas Mistelis. Thanks as well to Jonathan Clayton and Hayley O’Hagan. Greatly indebted to my beloved alma mater, “Escuela Libre de Derecho.” In particular, thanks to its rector, Lic. Fauzi Hamdan Amad, a man of character and example, who encouraged me to complete this endeavour and provided assistance through the Interns Program at ELD lead by Dr. Juan Pablo Pampillo Baliño, whose assistance is likewise much appreciated. I owe special thanks to Lic. Mayra Mügemburg, who has been of invaluable support and does really special the postgraduate school of our alma mater. Also, many thanks lo Lety Sanchez for her constant support. Deeply grateful to Lic. Luis Díaz Mirón, an excellent friend and inspiring example of a great man and a lawyer with high standards and moral values. Many people have been next to me during this journey. Friends, family and academics should all be thanked as well. I would like to thank all my friends in Mexico, especially Alejandro Moreno Morrison, an authentic artist of jurisprudence and law in our time, and his beloved family, who have always been there praying for me and never stopped encouraging my further progress on this endeavour. This final work it is only possible thanks to him, his great counsel, help, strong and invaluable wise support. I owe special thanks to Fernando Lorenzo Salazar, who have provided invaluable friendship for many years at ELD and the UK and his encouragement to this achievement, thanks as well to his wife Sarita and his brother in law Carlos Lesama, and all the members of his wonderful family. Special attention deserves to Mr. Alfonso Ledesma Coria, Yolanda and their family for always being caring and supportive, friend of many years and especially during the difficult times. 4 Deeply grateful to Alejandro Ruiz Suarez, a wonderful and loyal friend during our studies in the UK and since then. Many thanks to Karla his beloved wife, both who have become part of our own family in Mexico, my wife, sons and we are grateful for you forever. I want to thank as well to Miguel Gómez Bravo, excellent and loyal friend, especially during my leg recovery in London, a great colleague during our studies of PhD in the UK and since then. Thanks to Miguel Gutierrez Cervantes, who have provided friendship for many years and encouragement to this achievement, this goal would not be possible without him. Special thanks to my Professors and friends Jorge Federico Gaxiola Moraila and Rodolfo Gómez Salazar, men of amazing wisdom and a noble heart. Many thanks to Jorge Adame Goddard, Elisur Arteaga Nava, Francisco De Icaza Dufour, Jaime Del Arenal Fenochio, Raúl Name Neme, Loretta Ortiz Ahlf, and Laura Trigueros Gaisman (in memoriam), all of whom have been an inspiring example to me of persistence and excellence, both during my journey at ELD and many years after. Thanks to Diego Martín Del Campo for his wise advice and loyal support during my LLM and PhD studies in the UK. I owe special thanks to Professor Luis Pazos de la Torre, humble and wise man. I am grateful to the Mexican Embassy in London, particularly to the Ambassador Mr. Juan José Bremer de Martino and the people of Bancomext for their help in using their library. I would also like to thank the people of the various libraries that have accommodated my research. In particular I am grateful to the IALS Library, LSE, Kings College, Queen Mary College and the British Library in London. Thanks to Dr Jaime Serra Puche, former Secretary of Commerce during the negotiation of the NAFTA and a world-class Mexican scholar, for sharing his information and charts on the positive effects that NAFTA has had for Mexico; and to Mr. Juan Gallardo Thurlow, chief NAFTA and COECE negotiator on behalf of the Mexican private sector and an example among Mexican entrepreneurs, for encouraging with words and actions the study, research and teaching of international commercial law at our alma mater. Thanks also go to my Mexican friends from ELD, Esteban Dallehite Ballard, Miriam Name, Cesar Rocha, Cesar Martínez Aleman, Felipe de Jesús Zamora Castro (In Memoriam), José Hernandez Romo, Carlos Martínez Rico, José Luis Guevara, Mario Córdova López and Humberto Rivero Silva, all of them great friends since youth. Thanks as well to the team of Becarios of ELD for their assistance in the last part of updating the research: especially to Renato López and Sergio Torres. 5 I am indebted as well to my friends of the CCLS and Queen Mary College. I learnt about universal friendship, Amr D. Marar, Tia Rosa and Martin and, Jay Akroku (my always friend there), Okechucu Ejims (Okei), Iwa Akinrinsola, Nkeem, Dr. Oishi, Ali Zbeeb, Rod and Teresa and all the guys of the flat 46 of Stocks Court. Thanks to Dr. Michell Ruiz Suarez who provided a priceless help particularly during my leg recovery, thanks guys. Thanks also to Dr. Arturo Almazán from the Centro de Rehabilitación de México, who made me to walk again after surgery. I want thank also my colleagues at my former work in the International Rulings Office of the Tax Administration Service of Mexico (SAT), Castor Alvarez Ortíz, Alexis Orta, Rogelio Muñoz, Carlos Molina, Jose Luis Rosales, Ricardo Torres Díaz, Pedro Canabal Hermida, Alfredo Gutiérrez Ortíz Mena, Karina Pérez Delgadillo, Carlos Casales, Hugo Israel Herrera, Jhoana Sagrero, Adriana López, Julio Yapur, Arturo Pérez, Esperanza Bobadilla (Perita), Raúl Bolaños (Gordito), and specially María Guadalupe Montes Ávila (Lupita) and all the good folks of the SAT for their constant support. Special thanks go to Ericka Salazar Aldana, good friend during my stay in SAT. Also thanks for their support to Roberto and Carlos Cantoral Zucchi, Luis Cecilio Orozco, Hugo Pereznegron, Humberto Hernández, Ángeles Mendoza, Antonieta Ramírez and Edmundo Rivero at Sociedad de Autores y Compositores de México S. de G.C. de I.P. (Authors’ and Composers’ Society of Mexico, SACM). Thanks to my colleagues at the Ministry of Finance of the State of Veracruz, especially to Jorge Fernando Ramirez (Vice-Minister of Finance), Lucia Letayf, Pablo Hernández, Francisco Raúl Robles Bolaños and Jose Ramón Cardeno Shaadi. I want thank also my colleagues at Tec de Monterrey, special thanks to Dr. Mario Alvarez, Karina Zamora, Karla Amezcua and the always kind Maribel. Special thanks and attention deserves to Untie Enith and her son Leonardo Montes de Oca an extension of my own family. Thanks to my Polish family, who contributed to this achievement as well. To Mama Helena and Tata Mirek - noble and happy people for bringing to life the most precious being: my wife Ania. Thanks to Greg for all his support and help always and especially during my recovery in Poland.