Banorte
Encyclopedia
Banorte is a major bank
in Mexico, based in Monterrey
. Banorte is ranked in the 84th place out of 100 in the 2007 Great Place to Work List for Mexico.
It is a Forbes Global 2000 company, with more than 30 billion dollars in assets under management, 12,500 employees and 950 branches. Currently, it is the only major bank in Mexico not owned by any foreign group. Banorte, with total consolidated assets of approximately $15.1 billion, is the fifth largest bank in Mexico.
It was established in 1889 as Banco Mercantil de Monterrey and in 1985 merged with Banco Regional del Norte to form Banco Mercantil del Norte (Banorte). In late 2001, Banorte acquired Bancrecer in US$125 millions. Bancrecer had been taken over in 1999 by IPAB. Bancrecer had itself taken over another bank, Banoro, in 1997.
In 1992, it was purchased from the Mexican Government by a group of investors headed by the Mexican businessman Roberto Gonzalez Barrera
. Banorte expanded their business to leasing services (Arrendadora Banorte) in 1990, to warehousing and factoring services (Almacenadora Banorte and Factor Banorte) in 1991. In 1997, Banorte established an alliance with the Italian group Generalli, a main European insurance company, to offer insurances, pension funds and Afore's services through their subsidiaries Afore Banorte-Generalli, Seguros Banorte-Generalli and Pensiones Banorte-Generalli. Also, Banorte has operations in New York (Banorte Securities) and Grand Cayman
(Banorte Grand Cayman Branch).
In less than 10 years, Banorte transformed itself from a regional bank, based mainly in the northern Mexico, to one with nation-wide coverage. To achieve that Banorte, with a huge investment, bought four Mexican banks (among them Banco del Centro and Bancrecer). In order to set up a financial group with full services Banorte wanted a securities company under his control. Banorte made an agreement to merge Casa de Bolsa Afin in July 1993.
Key numbers for fiscal year ending December, 2004:
This operations led U.S. Customs agents to arrest 22 high-ranking and mid-level bankers from 12 of Mexico's largest banks when they traveled to the U.S. in mid-May while they thought there went to a banking conference. The investigation produced 160 indictments, including 3 Mexican banks and 26 Mexican bankers. The US Justice Department intended to prosecute the banks under US law, with maximum penalties, seizures, and revocation to operate in the United States.
Banorte was among the banks and bankers which were busted in money laundry according to the Operation Casablanca. From June to July 1998 issue of Money Laundering Alert, Banorte was suspected to have forfeited $7,323,103.51 US dollars, so Banorte faced civil penalty lawsuit under Title 18, USC Sec. 1956(b) and civil forfeiture action under Title 18, USC Secs. 981 & 984.
On July 1, 1999, a U.S. federal judge in Los Angeles dismissed with "extreme prejudice" a $7.3 million forfeiture case against Banorte. No criminal charges were filed and U.S. authorities gave them back $1.4 million seized in the operation.
Banorte had implemented anti-money laundering policies and procedures and had detected and closed money laundering accounts prior to Operation Casablanca. These polices and practices enabled Banorte to defend the money laundering charges.
Inter National was founded in 1983 in McAllen. INB holds $940 million in deposits and employs 278 people at 16 branches in McAllen, Edinburg, Mission, Weslaco and El Paso
Until now, Inter National Bank will continue to operate in the US, and no significant strategic changes are anticipated.
Roberto González Barrera
(major stockholder) Chairman
Rodolfo Barrera Villarreal - Vice President
Bertha González Moreno - Patrimonial
José G. Garza Montemayor - Patrimonial
David Villarreal Montemayor - Patrimonial
Magdalena García de Martínez Chavarría - Patrimonial
Francisco Alcalá de León - Independent
Eduardo Livas Cantú - Independent Adviser
Eugenio Clariond Reyes-Retana - Independent
Herminio Blanco Mendoza - Independent
Ricardo Martín Bringas - Independent
Antonio Chedraui Obeso - Independent
Jacobo Zaidenweber Cvilich - Independent
Javier Vélez Bautista - Independent Adviser
Alejandro Valenzuela del Rio - CEO of Grupo Financiero Banorte, S.A. de C.V.
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
in Mexico, based in Monterrey
Monterrey
Monterrey , is the capital city of the northeastern state of Nuevo León in the country of Mexico. The city is anchor to the third-largest metropolitan area in Mexico and is ranked as the ninth-largest city in the nation. Monterrey serves as a commercial center in the north of the country and is the...
. Banorte is ranked in the 84th place out of 100 in the 2007 Great Place to Work List for Mexico.
History
Banorte is the primary subsidiary of Grupo Financiero Banorte, one of Mexico's largest and oldest financial institutions, which has been present in Mexico since 1899. The "Banorte" trademark is a well-known mark in Mexico. The web domain name "banorte.com" was created on October 13, 1998.It is a Forbes Global 2000 company, with more than 30 billion dollars in assets under management, 12,500 employees and 950 branches. Currently, it is the only major bank in Mexico not owned by any foreign group. Banorte, with total consolidated assets of approximately $15.1 billion, is the fifth largest bank in Mexico.
It was established in 1889 as Banco Mercantil de Monterrey and in 1985 merged with Banco Regional del Norte to form Banco Mercantil del Norte (Banorte). In late 2001, Banorte acquired Bancrecer in US$125 millions. Bancrecer had been taken over in 1999 by IPAB. Bancrecer had itself taken over another bank, Banoro, in 1997.
In 1992, it was purchased from the Mexican Government by a group of investors headed by the Mexican businessman Roberto Gonzalez Barrera
Roberto González Barrera
Roberto González Barrera is a Mexican businessman. He is the chairman of Gruma, the largest producer of tortillas and corn flour in the world, and of Banorte, the largest Mexican-owned private bank in Mexico...
. Banorte expanded their business to leasing services (Arrendadora Banorte) in 1990, to warehousing and factoring services (Almacenadora Banorte and Factor Banorte) in 1991. In 1997, Banorte established an alliance with the Italian group Generalli, a main European insurance company, to offer insurances, pension funds and Afore's services through their subsidiaries Afore Banorte-Generalli, Seguros Banorte-Generalli and Pensiones Banorte-Generalli. Also, Banorte has operations in New York (Banorte Securities) and Grand Cayman
Grand Cayman
Grand Cayman is the largest of the three Cayman Islands and the location of the nation's capital, George Town. In relation to the other two Cayman Islands, it is approximately 75 miles southwest of Little Cayman and 90 miles southwest of Cayman Brac.-Geography:Grand Cayman encompasses 76% of...
(Banorte Grand Cayman Branch).
In less than 10 years, Banorte transformed itself from a regional bank, based mainly in the northern Mexico, to one with nation-wide coverage. To achieve that Banorte, with a huge investment, bought four Mexican banks (among them Banco del Centro and Bancrecer). In order to set up a financial group with full services Banorte wanted a securities company under his control. Banorte made an agreement to merge Casa de Bolsa Afin in July 1993.
Key numbers for fiscal year ending December, 2004:
- Sales: USD $2.5 billions
- One year growth: (3.6%)
- Net income: USD $165.6M
- Income growth: (16.1%)
Money laundry involvement in US Operation Casablanca
Operation Casablanca was a three-year U.S. undercover investigation, where Americans investigated major Mexican banking institutions for laundering illicit drug profits. Mexican authorities were not informed about the investigation.This operations led U.S. Customs agents to arrest 22 high-ranking and mid-level bankers from 12 of Mexico's largest banks when they traveled to the U.S. in mid-May while they thought there went to a banking conference. The investigation produced 160 indictments, including 3 Mexican banks and 26 Mexican bankers. The US Justice Department intended to prosecute the banks under US law, with maximum penalties, seizures, and revocation to operate in the United States.
Banorte was among the banks and bankers which were busted in money laundry according to the Operation Casablanca. From June to July 1998 issue of Money Laundering Alert, Banorte was suspected to have forfeited $7,323,103.51 US dollars, so Banorte faced civil penalty lawsuit under Title 18, USC Sec. 1956(b) and civil forfeiture action under Title 18, USC Secs. 981 & 984.
On July 1, 1999, a U.S. federal judge in Los Angeles dismissed with "extreme prejudice" a $7.3 million forfeiture case against Banorte. No criminal charges were filed and U.S. authorities gave them back $1.4 million seized in the operation.
Banorte had implemented anti-money laundering policies and procedures and had detected and closed money laundering accounts prior to Operation Casablanca. These polices and practices enabled Banorte to defend the money laundering charges.
Banorte's entry to the US banking market
In 2006, Banorte, the fourth-largest bank in Mexico and one of the few large Mexican-owned banks, announced the acquisition for $259 million of 70% of the stock of INB Financial Corp, the Inter National Bank's parent company. The transaction is expected to be completed by the end of 2006. Banorte will have the option to acquire the remaining 30% for $370 million.Inter National was founded in 1983 in McAllen. INB holds $940 million in deposits and employs 278 people at 16 branches in McAllen, Edinburg, Mission, Weslaco and El Paso
Until now, Inter National Bank will continue to operate in the US, and no significant strategic changes are anticipated.
Executive Board
Designed on the General Ordinary Stockholders' Meeting of April 28, 2005Roberto González Barrera
Roberto González Barrera
Roberto González Barrera is a Mexican businessman. He is the chairman of Gruma, the largest producer of tortillas and corn flour in the world, and of Banorte, the largest Mexican-owned private bank in Mexico...
(major stockholder) Chairman
Rodolfo Barrera Villarreal - Vice President
Bertha González Moreno - Patrimonial
José G. Garza Montemayor - Patrimonial
David Villarreal Montemayor - Patrimonial
Magdalena García de Martínez Chavarría - Patrimonial
Francisco Alcalá de León - Independent
Eduardo Livas Cantú - Independent Adviser
Eugenio Clariond Reyes-Retana - Independent
Herminio Blanco Mendoza - Independent
Ricardo Martín Bringas - Independent
Antonio Chedraui Obeso - Independent
Jacobo Zaidenweber Cvilich - Independent
Javier Vélez Bautista - Independent Adviser
Alejandro Valenzuela del Rio - CEO of Grupo Financiero Banorte, S.A. de C.V.
Sources
- Banorte
- INB Bank
- Banorte Securities International Ltd.
- Grupo Financiero Banorte and Banorte USA
- News, "Operation Casablanca"
- Drug Trafficking in Mexico: A First General Assessment
- Mexican bank, Banorte, challenges U.S. and prevails in Casablanca
- Kroll's Notable Cases
- Mexico bank gets back funds seized in U.S. sting
- Citibank—The Confia Acquisition in Mexico
- WIPO Arbitration and Mediation Center
- Adrian E. Tschoegl. "Foreign ownership in Mexican Banking: A Self- Correcting Phenomenon". The Wharton School of the University of Pennsylvania, Philadelphia, PA 19104, October 23, 2006.
- Taeko Hoshino. Privatization of Mexico's public enterprises and the restructuring of the private sector. The Developing Economies, XXXIV-1 (March 1996) http://www.ide.go.jp/English/Publish/De/pdf/96_01_02.pdf
- www.greatplacetowork.com.mx