Mexico | Monthly Report on Banking and the Financial System. January 2021

Summary

Risk of a weak economic recovery and increased volatility in financial markets remains. Banxico publishes Financial Stability Report for 2H20. Total financial savings increased by 8.0% year on year in real terms during the 2Q20, while total financing expanded at a rate of 5.5%.

Key points

• Key points:
• Growth in credit to the non-financial private sector slows further in October 2020
• Preference for liquidity continues: growth in demand deposits hits all-time high
• Value of construction output fell by 20% in 2020
• Another month of gains for risk assets as the markets expect the pandemic will be brought under control early in 2021. Exchange rate closed 2020 below 20 pesos per dollar (ppd)
• Cofece considers lack of competition in the payment card market

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