Mexico | Monthly Report on Banking and the Financial System. April 2020
Published on Tuesday, May 5, 2020 | Updated on Friday, May 8, 2020
Mexico | Monthly Report on Banking and the Financial System. April 2020
The Financial System addresses a number of challenges in the face of the Covid-19 pandemic: to keep an adequate financing flow, preserve appropriate liquidity and a correct operation of exchange rate and debt markets as well as to help intermediaries to cope with the management of market and credit risk.
Key points
- Key points:
- The expected decline in economic activity arising from the COVID-19 pandemic means that the scenario for the performance of banking loans is far from encouraging.
- Weakness in bank deposits place them in a vulnerable position when faced with the adverse effects that the COVID-19 pandemic will have on the economy and the financial markets.
- Domestic asset prices show a negative differentiation in an environment characterized by a clear contrast between the significant recovery of equity markets and the economic fundamentals.
- Flows of mortgage financing drop by 1.9% in the first two months of 2020.
- Regulatory response in face of the Covid-19 pandemic.
Documents to download
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Authors
- Fernando Balbuena
- Alfonso GurzaBBVA Research - Principal Economist
- Gabriela LópezBBVA Research - Senior Economist
- Iván Martínez UrquijoBBVA Research - Principal Economist
- Carlos SerranoBBVA Research - Chief Economist
- Mariana Angélica ToránBBVA Research - Principal Economist
- Samuel VázquezBBVA Research - Principal Economist
Geographies
- Geography Tags
- Mexico
Topics
- Topic Tags
- Banks
- Financial Markets
- Real Estate
- Financial Regulation
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