Deposits latest publications
The financial system maintains its stability, five months after the start of the pandemic, supported by the adequate levels of capitalization and liquidity of the banking system, as well as the special regulatory measures adopted by the financial authorities.
In June, total credit granted to the private sector and total banking deposits slowed down as the tailwind effects associated with the pandemic (e.g. precautory savings, demand of credit lines) slowly fade and gradually leave the spotlight to the adverse effects of the economic recession.
Banks remain critical for supporting the economy during the crisis. Total bank loan growth will slow and deposit growth revert to normal rates. Banks will be operating with higher levels of deposits relative to loans, credit quality will deteriorate and profitability edge down, but systemic risks remain contained.
CNBV designates commercial banking institutions of local systemic importance. BIS annual economic report. The origination of mortgage financing from banks fell 18.2% in real terms. Adverse economic effects of the COVID-19 outbreak in the US slows down the recovery of financial markets at the end of July.
July 24, 2020
Mexico | Less dynamism of credit to the non-financial private sector and deposits in May
In May 2020, the balance of current credit granted by commercial banks to the non-financial private sector grew at a nominal annual rate of 8.2% (5.2% real), lower than the rate observed the previous month (11.2%) and the nominal rate of 8.9% registered the same month of 2019.
The liquidation process of Banco Ahorro Famsa begins. Consumer loans are no longer driving total private sector financing. Bank deposits reverse the weakness shown since the second half of 2019.
Commercial banking leads intermediation of deposits and credit to the private sector. In the first quarter of 2020, the percentage of companies that received bank credit increased. Commercial banking has the solvency required to continue granting credit and overcome possible losses.
In March 2020, the nominal annual growth rate of traditional bank deposits (demand + term) was 13.9% (10.9% real), showing an unusual increase compared to the result observed in February (when it registered nominal growth of 5.8%) and in March 2019 (month in which it grew 7.7%).