A comparative study about commercial Banks and non-commercial Banks savings schemes

Abstract

Even though profits can be positively related to savings, when this is measured in monetary terms, there is no relation whatsoever with savings rates. In this research paper savings schemes in Mexico are compared and analyzed using data from Mexican savings and first-tier banks.

One of the main reasons Mexico has a low savings rate is because of the country’s slow growth, whereas inflation is incrementing at an accelerated pace.

People who save, which are considered as investors in banks, assume all the risks when they take their savings to any number of different renowned banks in the country. In contrast to banking institutions, who always end up having a benefit even when their investors suffer a monetary loss related to value of money.