Many of Latin America's high-net-worth individuals are repatriating their funds and an increasing number of foreign investors are targeting the region, thanks to its rapidly expanding economy. With such demand for local product providers, domestic firms are finding themselves having to pit their specialist knowledge against the international reach of large foreign banks, making competition tough.

A new proposal in Mexico is urging foreign-owned banks to list on the country's stock exchange. But while these banks achieve high returns on equity and the global equity markets remain volatile, the Mexican regulators may have a wait on their hands before these plans come to fruition.

Mexico's banks have gone from fuelling the country's economic disasters of the mid-1990s to creating a strong financial system that has provided the economy with robust support throughout the global economic downturn.

Agustín Carstens, central bank governor of Mexico suggests that central banks must play a more pivotal role in order to prevent such a widespread and deep-rooted crisis hitting again.

The recently approved merger of Banorte and Ixe might not spur a consolidation trend within Mexico's locally owned banks but it is a positive sign of change as the market seeks out growth opportunities and increased liquidity.

Mexico's finance minister explains how investing in infrastructure will rebalance the country's export-heavy economy

Mexico's ties to the US economy, its well-capitalised banks and the business-friendly reforms it has in the pipeline mean the country is perfectly positioned to ride the wave of any global economic recovery. Optimism is such, that there is even talk of the country being classified alongside the BRIC economies. Writer Silvia Pavoni

With bank lending drying up last year, many Latin American corporates turned to the bond market to strengthen their cash positions. The resulting boom has instilled a sense of confidence in the region, with firms in Brazil, Mexico and Colombia leading the way. Writer Jason Mitchell