Mexico Banking Outlook. August 2023

Summary

Banks maintain levels of capital and liquidity above regulatory minima, along with higher profitability, even with a higher cost of risk. All the portfolios that make up bank credit to the non-financial private sector (NFPS) have registered growth in real terms.

Key points

• Key points:
• Consumer credit was the one that contributed the greatest dynamism to the growth of the NFPS portfolio in the first half of 2023.
• Credit card spending has increased at a higher rate than income, especially in the lowest deciles. There is a recomposition in the destinations of spending with CC and, for bank cards, a change in patterns between full and non-full customers.
• The recomposition of bank deposits towards term deposits continues in the face of the cycle of interest rate hikes.
• The participation of non-residents in domestic financial assets fell at a slightly higher rate during the first half of 2023, while the public sector consolidated as the main user of financial resources in the economy.

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