Swiss banking major UBS is reportedly moving to shut down its brokerage in Mexico, which is considered to be Latin America’s second largest economy.

The reason behind the Swiss bank’s move to exit Mexico is not clear, Reuters reported citing three people familiar with the matter.

It is also not known whether the private banking giant would pull the plug on other services it currently offers in Merico.

UBS is expected to keep a presence in Mexico and manage operations from other regions, according to two sources.

UBS said in a statement to the news agency: “We remain fully committed to our business in Mexico.

“ To ensure alignment with our global strategic priorities, we review all of our businesses regularly to identify growth opportunities and to generate operational efficiencies.”

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The bank also noted that it appointed Gustavo Galvan-Duque early this year as head of Wealth Management for Mexico and is on the lookout for more ‘local talent’.

Besides UBS, a number of other global financial institutions have recently closed down their operations in Mexico.

The country’s stagnant domestic market, coupled with an unattractive investment environment and lack of moment, are said to be the reason for these departures.

In July this year, Mexican financial authorities said that Germany’s Deutsche Bank and US investment giant JP Morgan had decided to exit its operations in the country.

This February, Bloomberg reported that JP Morgan was withdrawing from its private banking operations in the country and had signed an agreement to refer the business to BBVA Mexico.

In June, Grupo Bursátil Mexicano, an investment platform in the Mexican stock market, signed an agreement to secure up to $150m investment from SoftBank.