LatinNews Regional Monitor: Mexico - 19 February 2019

* According to a new report by BBVA Bancomer bank on the banking sector in Mexico, there was a 6.7% annual increase in credit availability given to the private sector in 2018, slightly higher than the 6.4% recorded in 2017. The main impulse behind the increase has been credit given to companies (5.4%). As stated in the report, Mexican companies have changed their sources of funding, reducing foreign debt and increasing credit from domestic banks. This tendency towards substitution of external for internal loans could continue if there are new episodes of exchange rate volatility and persistence of credit restraint abroad. Compared with previous years, consumer credit continued decreasing, from 2.5% in 2016 to 0.5% in 2018. This can be largely explained by the evolution of real wages and employment in Mexico.

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