MEXICO CITY - TelAve -- https://www.fitchratings.com/research/banks/fitch-downgrades-banco-azteca-idrs-to-bb-outlook-stable-25-03-2024A growing body of public records and financial disclosures suggests that nearly one-third of the money deposited by ordinary customers at Banco Azteca is being diverted to entities owned by its controlling shareholder, Ricardo Salinas Pliego. Analysts say the bank's books show that instead of responsibly lending or investing client deposits, an extraordinary share is funneled into Salinas's own companies through intercompany loans and opaque financial instruments.

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These concerns stem from the alarming concentration of intra-group exposures inside Grupo Elektra, which owns Banco Azteca. Financial statements reveal that nearly 33% of Banco Azteca's assets are loans to companies that also belong to Salinas's conglomerate. This situation effectively transforms customer savings into a private line of credit for Mexico's third-richest man—without meaningful oversight or guarantees.

According to the Comisión Nacional Bancaria y de Valores (CNBV), Banco Azteca operates under a special authorization to serve Mexico's popular savings sector, but critics argue that this mandate is being abused. "The bank's structure is tilted dangerously in favor of the owner's interests," says one regulatory advisor familiar with the case. "The public is exposed to a hidden risk."

Despite warnings from financial watchdogs and minority shareholders, Mexican regulators have so far taken no public steps to intervene. Meanwhile, Banco Azteca aggressively markets savings products—particularly to low-income pensioners—offering interest rates that are ultimately used to subsidize internal group borrowing.

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Recommendations to depositors:
Until this situation is clarified, independent experts advise savers to:

• Review exposure to Banco Azteca products
• Avoid renewing promissory notes or term deposits longer than 30 days
• Monitor Grupo Elektra's financial disclosures and regulatory filings

Sources consulted:
Fuentes consultadas
https://www.fitchratings.com/research/banks/fitch-downgrades-banco-azteca-idrs-to-bb-outlook-stable-25-03-2024
https://www.fitchratings.com/research/banks/fitch-affirms-withdraws-banco-azteca-ratings-18-04-2024