Mexico | The complex economic environment hindered the recovery of banking activity.

Summary

Lower growth expectations, outbreaks of COVID and high levels of inflation towards the end of 2021 complicated the recovery of banking intermediation. Under the nominal annual growth in December 2021 of both credit and deposits, lies a demand that remains cautious and weak.

Key points

• Key points:
• Bank deposits slowed in 2021 after the unusual growth driven by the pandemic during 2020.
• Demand deposits slowed, but remained underpinned by the private sector.
• At the end of 2021, bank credit maintained a heterogeneous recovery.
• The improvement in the annual nominal performance of business credit has not yet implied a widespread dynamism in real terms at the sector level.
• The payment of mortgage liabilities was the use of financing that most increased its participation in the housing portfolio during 2021.

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