Mexico Financial Sector Assessment
This financial sector assessment (FSA) summarizes the key findings and recommendations of the 2016 FSAP update report for Mexico. Mexico’s economic growth has been steady and inflation remained low despite a significant depreciation of the exchange...
Main Authors: | , |
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Format: | Report |
Language: | English en_US |
Published: |
World Bank, Washington, DC
2017
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Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/621671508177153708/Mexico-Financial-Sector-Assessment http://hdl.handle.net/10986/28536 |
Summary: | This financial sector assessment (FSA)
summarizes the key findings and recommendations of the 2016
FSAP update report for Mexico. Mexico’s economic growth has
been steady and inflation remained low despite a significant
depreciation of the exchange rate in the last 18 months.The
medium term outlook for the Mexican economy foresees stable
growth and inflation. After several years of contained
growth, commercial bank credit grew by 14 percent in 2015,
albeit from a very low base.Nonfinancial sector balance
sheets show little sign of stress.Key risks to the
macroeconomic outlook are mostly external in nature and stem
from the close connection to US markets, the dependency on
oil revenues, and potential resurgence of market volatility.
A comprehensive financial reform was approved in November
2013 with the objective of increasing the financial sector’s
contribution to economic growth. The financial reform
encompassed revisions to the banking law and other
legislation to encourage credit expansion. This entailed a
more active role of development banks in extending credit
and measures to ensure that private financial institutions
would channel credit to productive activities. |
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