Iván Martínez Urquijo
•B.A. in Economics, Instituto Tecnológico Autónomo de México (ITAM)
•MsC in Finance, ITAM
•Diploma in Econometric Models, ITAM
The liquidation process of Banco Ahorro Famsa begins. Consumer loans are no longer driving total private sector financing. Bank deposits reverse the weakness shown since the second half of 2019.
The impairment of the employment and income indicators stemming from the COVID pandemic has brought questions about the health of banks. Despite the complexity of the current situation, it should be noted that the fundamentals of the banking system as a whole show strength to face the economic consequences of the pandemic.
The momentum of non-financial private sector credit is partly based on the accounting effect of exchange rate depreciation. Companies use their credit lines to cover liquidity needs in face of the health emergency. Consumer loans are no longer driving total private sector financing.