Mexico | Bank credit fell 2.0% due to the performance of the consumer & business portfolio

During February 2021, the nominal balance of the current loan portfolio granted by commercial banks to the non-financial private sector fell 2.0%. The annual rate reduction in nominal balances was greater than in January (-1.3%), accentuating the downward trend observed since May 2020.

Key points

• Key points:
• Contraction in the demand for business credit implies lower outstanding balances by sector, except in hotels and construction
• Consumer credit fell in all its categories for the second consecutive month
• Despite the fact that the low-income housing loan portfolio accumulates years in contraction, the total mortgage portfolio maintains its growth
• Default of the different credit portfolios begins to increase

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