Citi’s Banamex, Spanish Banks Set to Pay Up in Mexico Tax Tweak

Mexico’s biggest banks are set to bear the brunt of a proposed change that would eliminate their tax deduction for contributions they make to the nation’s deposit protection program.

Spain’s Banco Bilbao Vizcaya Argentaria SA and Banco Santander SA, along with Mexico’s Grupo Financiero Banorte and Citigroup Inc.’s Grupo Financiero Banamex, stand to lose the most under the 2026 budget plan that President Claudia Sheinbaum’s administration submitted to lawmakers late Monday.

The proposal “harmonized” Mexican regulation with US rules, where the Federal Deposit Insurance Corporation payments also aren’t deductible, Finance Minister Edgar Amador said on Tuesday at a ...