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The rapid outbreak of the new coronavirus (COVID-19), which has spread far beyond China, has wreaked havoc on financial markets. World stock markets have fallen by around 30% in just over a month, led by the transport, tourism, hotel industry and energy sectors, which has been followed by others such as finance.
February 24, 2020
Mexico | Traditional bank deposits in 2019 recorded the lowest growth of the last 5 years
In December 2019, the nominal annual growth rate of traditional bank deposits (demand + term) was 5.5% (2.6% real), showing a slight recovery from the result observed in November (4.7%), but insufficient to reverse the slowdown observed as of August 2019.
In November 2019, the growth of bank deposits maintained its deceleration trend compared to what was observed at the beginning of the year, although it registered a marginal advance with respect to October, which may be associated with seasonal factors.
During September 2019, bank deposits seems to have been more influenced by the prolonged weakness of economic activity in Mexico than by the environment of lower interest rates. This was reflected in a slower pace of joint growth of demand and term deposits, a fact that has not been observed since December 2018.
The signal of change in the dynamics of the fundraising of the banking sector was confirmed in August. The beginning of the cycle of cuts by the central bank of the short-term interest rate influenced so that the term deposits grew to its lowest level in almost two years.
Sight deposits hiked to 5.7% (YoY), while term deposits slowed down to 12.9% (YoY), influenced by possible signs of change in savings dynamics.
During the month of June, the weakness of the economy once again influenced the growth in the deposits of the banking system. Similarly to the last months, low growth rates of demand deposits predominated over double-digit growth rates of term deposits.
July 19, 2019
Mexico | The effects of economic weakness are accentuated over traditional bank deposits
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.