Mexico | The financial system overcame the pandemic while maintaining its stability.

Summary

We share the conclusion reached by the FSR regarding the soundness of the financial system and we agree with the idea that some institutions of the banking system - none of systemic importance - may still have solvency problems, although this does not put the banking system at risk. as a whole.

Key points

• Key points:
• The Mexican financial system maintains a solid position after the complex economic environment derived from the pandemic. The capital and liquidity levels of Mexican banks comfortably comply with the minimums required by regulation.
• Credit granting to the private sector has not recovered. However, due to the resilience shown during the crisis, the banking system is in a suitable position to support the economic recovery.
• The tightening of global financial conditions is one of the main risks ahead for emerging markets, given its adverse effect on capital flows.
• The risk of potential increases in both sovereign and Pemex risk premia lingers, as do the possible effects on their credit ratings.
• The economic and financial impacts associated with climate change can lead to considerable future losses for financial institutions.

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