The Financial Group is a relatively new concept in Mexico, adopted as part of the major overhaul of the financial laws accompanying reprivatization of the banks in 1990. It can be understood only in the context of the financial laws generally, because it partakes of each of them.

Yet the Financial Group has a NAFTA side as well, based on Mexico's approach to opening up its financial service sector to foreign investment. Inspired by NAFTA, the foreign Affiliate came into being, and with it, the Affiliate Holding Company of a financial group made up of foreign Affiliates.

This chapter is concerned with what these legal constructs are and the real world in which they must operate. It concentrates on the credit and auxiliary credit institutions eligible for group membership, addressing securities-related entities as well; of insurance and bonding, note only is taken that these subsectors of the financial sector are also eligible. Within this area, issues that affect credit are also addressed since the foreign investor must take into consideration factors that are not simply questions of capital structure and regulation.