Mexico | Health contingency will worsen credit and deposits slowdown

Summary

COVID19 pandemic hits as banking activity was already slowing down. In February the growth rate of banking intermediation kept the downward trend exhibited during the second half of 2019 as a result of the stalling economy.

Key points

• Key points:
• Grim expectations for credit granted to firms as the slowdown continues
• Weak job market and private consumption extend the credit consumption slowdown
• Mortgages growth still in double digits, but not for longer
• Low growth in total deposits sets a vulnerable scenario in face of the pandemic

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