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Mexico's government will this year force the country's banking system to increase by 20% its reserves for lending to the public sector, local daily Informador reported.
The new regulation is expected to take effect by year-end.
Of the system's 41 banks, about half lend to state and city governments, with 6-7 large lenders expected to feel the biggest impact from the higher reserve requirement.
The new rule is part of a move that will see ratings agencies' role diminish, while that of credit information companies increases, according to the report.