Banks will sell non-performing loan portfolios due to new fiscal rule
León, Guanajuato . - The change in the deduction for bad debts for credit institutions, proposed in the Economic Package for 2026, will force banks to eliminate portfolios of "spoiled" loans, that is, clients who have not paid, to avoid a cumbersome battle with the judicial system.
The Economic Package for Fiscal Year 2026 establishes that the treatment of the deduction for bad debts applicable to credit institutions will be standardized with that of other taxpayers, in order to eliminate the special regime established in Article 27 of the Income Tax Law (LISR) .
This change means that banks will no longer be able to deduct from taxes the reserves or provisions these institutions create based on the status of each of their loan portfolios, explained José Antonio Quesada Palacios, former vice president of Regulatory Policy at the National Banking and Securities Commission (CNBV) and member of the board of directors of the Mexican Institute of Finance Executives (IMEF), in a recent interview.
Many (banks) are going to be trying to eliminate portfolios of bad clients to keep only the good ones, they are going to be very careful about accepting new clients and they are going to be very careful about making a pact with you when this starts to go wrong so as not to end up in court because who knows how long this is going to take them.”
"So I think they'll continue lending to good clients, but for risky clients, it's going to get more difficult to get someone to lend to them, that's how I see it; it's going to become more polarized," the expert said.
What the tax authorities are saying is that no matter how the bank manages its portfolio, everything it creates as a reserve will be non-deductible and will only be able to deduct it when all possible collection efforts have been exhausted, he added.
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