Weekly Report - 12 September 2013 (WR-13-36)

MEXICO | Financial reform. On 10 September Mexico’s chamber of deputies approved the financial reform package sent to congress by President Enrique Peña Nieto. The reform, which was presented by Peña Nieto back in May, seeks to introduce changes to the local banking sector in order to allow it to increase lending in a bid to boost domestic economic development. Although Mexico’s banking sector is one of the most solid in the region with an average capitalisation rate of 16.5%, banks operating in the country only lend the equivalent of 26% of Mexico’s GDP. This is well below the regional average, which stands at 50%.

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