Mexico | Monthly Report on Banking and the Financial System. August 2021

Summary

May could represent a turning point in the dynamics of total credit to the non-financial private sector, with an aggregate contraction smaller than the one experienced in April and a better performance by portfolios, while bank deposits also showed signs of a change in trend in its dynamics.

Key points

• Key points:
• Bank credit to the non-financial private sector contracted 7.4% in May, less than in March and April, when a significant base effect was recorded due to the use of business credit lines in the same months of 2020.
• During May, traditional deposits exhibited their second consecutive month with growth at a negative annual rate, falling 0.6% nominal (-6.2% in real terms).
• Commercial banking institutions registered deposits and loan portfolio balances equivalent to 23.8% and 20.7% of GDP, respectively.
• Growth concerns at the forefront in July as a new wave of COVID and China's slowdown drove US long-term yields to their lowest since February.

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