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

Summary

In 3Q21, the percentage of companies that obtained financing increased, while the recovery in demand for automotive credit has lagged in comparison to other segments. In a context of increased volatility in financial markets, the International Monetary Fund renewed a USD 50 billion flexible credit line for Mexico

Key points

• Key points:
• As of September 2021, credit balances to the non-financial private sector (NFPS) have moderated their fall, but have not yet retaken positive ground.
• The impulse of demand deposits cushioned the fall of traditional deposits of commercial banks.
• In Mexico, total financial savings fell -5.5% in the second quarter of 2021 (2Q21), while total financing fell -3.5%.
• Powell's pivot on inflation and the Omicron variant derailed markets at the end of November.

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