July 19, 2019
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The continued decline in the pace of economic activity and the risks in both commercial and economic policy have had an adverse influence on deposits of the banking system, to the point that the nominal growth of the traditional deposits during May 2019 was located at its lowest level since the end of 2013.
Mortgage lending increased, with higher average amounts and a slight increase in the interest rate. In 2018, payroll loans slowed their growth rate. The Financial System Stability Council (CESF) updates its risk balance. High concentration of demand for bank mortgage loans.
The combination of weak economic activity and high short-term interest rates maintain low growth over demand deposits, the main component of traditional deposits.
The CNBV publishes a new financial education indicator. The dynamism in private sector credit in 1Q19 reflects moderation in economic activity. Trade Tensions between the USA and China Increase Risks for Global Growth.
During the 1Q19, the fall in economic activity had a significant influence on traditional deposits, whose nominal annual growth of 7.8% (3.5% real) is the lowest since the end of 2013. This behavior is supported, mainly, in the stagnation of demand deposits, which predominated over the dynamism of time deposits.
In a context of economic slowdown and short-term rates at their highest level since 2009, traditional bank deposits show, in February, a fall in their growth rate to 7.5% annual nominal (3.4% real), a figure not observed since the beginning of 2014.
The CESF reviews its balance of risks, highlighting the increase of foreign risk. The CNBV announces a new publication on financial inclusion. The economic slowdown and unchanged interest rate expectations are the main factors behind financial market movements.
In January 2019 the nominal annual growth rate of traditional deposits (demand + term) of commercial banks was 7.8% (3.3% real), similar to the previous month (7.9%) and lower than the nominal growth rate registered in January 2018 (9.0%).