Mexico | Bank lending falls 6.1%, a decline of a lesser magnitude than in previous months

Summary

A milder contraction in the annual growth rate of outstanding balances for the second consecutive month provides encouraging signs that the negative impact of the pandemic on banking credit has moved past its worst point and could be on a recovery path.

Key points

• Key points:
• Business credit still shows signs of a weakened demand, with a nominal annual fall of 12.1%.
• Consumer credit begins to reverse its downward trend, although there is still a long way to go to achieve growth in real terms.
• Mortgage credit continues to grow, even after discounting the effect of inflation on portfolio balances.

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