For more than two decades, Mexico’s banking sector has been characterised by sound regulation, high capital adequacy ratios and strong profitability. Nonetheless, it is still small for an economy of its size and stage of development, as lending policy remains relatively conservative after a series of financial crises in the latter decades of...
Since the economic, financial and banking crisis of 1994-95, many Mexicans have lacked full confidence in the integrity of the banking system. It shrunk greatly during and immediately after the crisis. In the intervening years, banking regulations have been greatly tightened, foreign entrants to the sector have come to dominate, and credit as...
Despite challenges, and as the Mexican insurance sector laboured to meet new reporting standards, signs of strength have been showing in terms of profitability and premium growth. As rising costs were passed on to clients due to the weak exchange rate, some segments – notably health – have seen a rise in premiums. It is expected, however, that regulatory reforms will ultimately limit the...
Mexico’s capital markets are tightly regulated, but this has not greatly hampered innovation, with a number of new financial products becoming available to investors in recent years. The sovereign bond market has been particularly well developed over the past two decades, while corporate bond issuances have also been increasing, particularly among leading parastatal companies, such as the...
For more than two decades Mexico’s banking sector has been characterised by sound regulation, high capital adequacy ratios and strong profitability. Having learned from previous experiences, the Mexican banking sector emerged relatively unscathed from the 2008 global financial crisis. Since then, lending growth and profitability have picked up, despite a relatively sluggish economy, as has the...
At a time when a number of major Latin American economies, including Brazil and Venezuela, are heading toward recession, Mexico’s economy stands out in the region for its resilience. Projections for 2017 are couched in more uncertainty than is usual, however, in light of the lack of clarity over and the potential impact of policy changes in the US during the first year in office for US President Donald Trump.
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