Mexico | Troubled shadow banks do not represent a significant risk for the banking system

Recent troubles at some shadow banks show the vulnerabilities of its funding model and could translate into liquidity problems for the sector. However, at present, this situation does not represent a risk for the financial system as a whole.

Key points

• Key points:
• Recent problems at some shadow banks show the vulnerabilities of its funding model in an environment of rising interest rates.
• These problems could translate into liquidity problems for the sector as a whole, particularly given the mistrust due to the inconsistencies in their financial statements.
• At present, the situation does not represent a risk for the financial system as a whole, given the limited exposure to credit risk of the shadow banks.

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