Mexico | Monthly report on banking and the financial system. September 2024

Summary

The economic slowdown is already showing effects on banking activity. In July, credit to the non-financial private sector registered a widespread weakening, while traditional deposits grew less than in June, even considering the boosting effect of the exchange rate depreciation.

Key points

• Key points:
• Traditional bank deposits reduce their growth due to the slowdown in demand deposits.
• Credit to the non-financial private sector showed a widespread weakening.
• The percentage of companies that used bank financing decreased in 2Q24.
• Can any lessons be drawn for today's context from the most recent FED easing cycles that began with a 50bp cut?
• Opportunities in the design of SME policies to improve their access to financing.

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