Iván Martínez Urquijo
•B.A. in Economics, Instituto Tecnológico Autónomo de México (ITAM)
•MsC in Finance, ITAM
•Diploma in Econometric Models, ITAM
In July 2020, the balance of current credit granted by commercial banks to private sector grew at a nominal annual rate of 4.9% (1.3% real), lower than the nominal rate observed the previous month (6.5%) and the nominal rate of 8.6% registered in the same month of 2019, reducing its dynamism for the third consecutive month.
The financial system maintains its stability, five months after the start of the pandemic, supported by the adequate levels of capitalization and liquidity of the banking system, as well as the special regulatory measures adopted by the financial authorities.
In June, total credit granted to the private sector and total banking deposits slowed down as the tailwind effects associated with the pandemic (e.g. precautory savings, demand of credit lines) slowly fade and gradually leave the spotlight to the adverse effects of the economic recession.