MEXICO CITY (Reuters) – More than a year after the COVID-19 pandemic, Mexico’s financial system has shown resilience and has a strong overall position that will contribute to economic recovery, the financial stability report of the central bank.
The stress tests of the Banco de México financial system reveal that the Mexican banking system as a whole has the necessary capitalization levels to allow it to face six different scenarios simulated for the economy in the report.
However, some banking institutions, which represent a low percentage of the total assets of the system, could have difficulties to maintain the minimum levels of capitalization required in certain adverse scenarios, according to the semi-annual report.
“The Mexican financial system has continued to show resilience and a generally solid position, characterized by levels of capital and liquidity above the applicable regulatory minimums,” the bank said.
The Bank of Mexico said that the prospects for the Mexican economy have improved in line with the better prospects for world economic growth. But he said the outlook was uncertain due to the evolution of the pandemic and the possibility of an uneven recovery.
Mexico’s economy contracted about 8.5% last year, the sharpest drop since the 1930s. Mexico is expected to recover some of that in 2021, and the government is forecasting growth of 6.5%.
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