Mexico Banking Outlook. February 2023

The current credit portfolio to the Non-Financial Private Sector closed 2022 with real growth of 4.6%. The 9.1% real annual growth of consumer credit stood out. Traditional bank deposits grew by a real annual 1.8% in December 2022. Among these, term deposits accelerated due to the increase in interest rates.

Key points

• Key points:
• The Mexican Banking System maintains levels of capital and liquidity above regulatory minima.
• Bank credit to the private sector has exhibited a widespread growth in real terms. During 2022, the consumer portfolio contributed the most to the growth of the total portfolio.
• Interest rates have increased, but other granting conditions, such as amounts and maturities, have also adjusted. This could potentially contain a rise of NPL ratios.
• There has been a recomposition of the excess liquidity accumulated during the pandemic towards term deposits and investment funds. The impulse to consumption waned by the end of 2022.

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