Wal-Mart has many superstores in Mexico, as well as the US.

It said that branches of the venture, to be known as Banco Wal-Mart de Mexico Adelante, may open as soon as November.

The retail giant said that it had been authorised to begin the operations by the country's National Banking and Securities Commission.

Earlier this year Wal-Mart pulled out of plans to obtain a US banking licence after massive controversy.

'Accessible banking'

Wal-Mart's Mexican division is the country's largest retailer and private sector employer, with about 950 business units including restaurants and Sam's Clubs, as well as Wal-Mart superstores.

"With Banco Wal-Mart we will be able to complement the services we provide to the segment of the population that currently lacks the benefits of having accessible banking services," said Wal-Mart de Mexico's chief executive Eduardo Solorzano.

It is the second retailer to gain entry to Mexico's banking sector.

In 2002, Mexican retail and financial services group Elekra was given permission to launch a banking operation - leading to the foundation of Banco Azteca.

Until earlier this year, Wal-Mart had planned to create an in-house bank in the US, known as an industrial loan corporation (ILC).

However, in February it decided to withdraw its the application with the US Federal Deposit Insurance Corp - a government finance watchdog.

Wal-Mart's plans had been firmly opposed by unions, consumer groups and some state-level banks who believed the move would threaten local businesses.

However, Wal-Mart said it had no plans to open branches or offer banking services to consumers and that its plan had been "surrounded by manufactured controversy".