Swiss bank UBS closing brokerage business in Mexico

Swiss bank UBS is planning to shut down its brokerage in Mexico. This is according to the testimony of sources close to the matter.

The lender’s decision follows a pattern of similar moves made by other renowned global financial institutions that have recently chosen to exit Latin America’s second-largest economy.

The motivation behind this move is not abundantly clear and it has not been clarified whether the bank would eventually discontinue other local services. Reports claim that UBS plans to retain its presence in Mexico, but will manage its business from other regions.

“We remain fully committed to our business in Mexico,” UBS said in a statement. “To ensure alignment with our global strategic priorities, we review all of our businesses regularly to identify growth opportunities and to generate operational efficiencies.”

In July, Mexican financial authorities announced the decision by Deutsche Bank and JPMorgan to shut down their offices in Mexico, signaling to experts that there is a drop in the level of confidence global players have in Mexico’s largely stagnant domestic market.