LatinNews Daily - 08 August 2018

* Moody’s Investors Service has released a new report which states that “Mexican public financial institutions are likely to step-up lending to support credit and economic growth after President-elect Andrés Manuel López Obrador takes office in December”. The report goes on to note that “the country´s development banks are generally well positioned to do so, with strong asset quality and capitalization metrics, and provided they increase lending prudently their fundamentals should remain sound”. Moody's analyst, Georges Hatcherian, adds “the government's reliance on public lenders to boost the economy will not increase competition for Mexico's private banks as the public lenders´ business models are generally complementary with those of their private peers”. One exception, however, could be “residential mortgages, where competition between Infonavit, the state-owned mortgage lender, and private financial institutions is more direct”.

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