In the last decade, bank financing to the private sector in Mexico has grown four times faster than the national economy even when periods of high uncertainty and volatility have faced with commercial or health issues. The challenges exist, but the sector has shown commitment to the country.
Despite the volatility and uncertainty environment, banks in Mexico are clear about their responsibility and years of work have given them the strength to maintain credit flow in order to continue with the country’s economic development from the business extreme to that of people.
Indicators of the Bank of Mexico (Banxico) reveal that the financing of commercial banking to the private sector represented 20.9 percent of GDP at the end of 2024. The opportunity is wide if it is taken into account that the figure is well below the average of the OECD countries, which is 72.7 percent.
In Latin America, the average bank credit to the private sector is equivalent to 45.5 percent of GDP. Chile Lead the region with 79.9 percent, followed by Brazil with 71.6 percent, Colombia with 42.0 percent and Guatemala with 36.6 percent. In USAreaches 42.9 percent of GDP; in United Kingdom, reaches 119.4 percent in 2023; and in Germany and Franceit is 77.0 percent and 108.6 percent, respectively.
Marco Oviedo, strategist for Latin America of XP Investments, warned that it should not be forgotten that banks are guided by profitability criteria. They lend when their risk analysis anticipates adequate yield and capital recovery.
He added that for the credit to flow, it is necessary that there are conditions such as competence, effective regulation, financial education and macroeconomic stability.
“The Mexican banks are liquid and well capitalized; we want to lend, but safely and with payment guarantees,” said Eduardo García Lecuona, president of the Intercam Board of Directors.
In the last 10 years, the Commercial Banking in Mexico It has significantly increased its financing to the private sector. Banxico figures show that the total credit portfolio grew 54.2 percent in real terms, from two billion 921 thousand 200 million pesos at the end of 2014 to seven billion 87 thousand 400 million pesos at the end of 2024.
Records show that, during that period, household credit increased 51.9 percent and companies did so by 56.3 percent.
-More banking
Specialists anticipate that the emergence of new technologies and the expansion of digital banks will further boost private financing and expand the scope of financial inclusion in the country.
Raúl Martínez-ostos, president and general director of Barclays Mexico, considered positive the entry of new players in the financial sector, since they can contribute to Reduce one of the main structural lags: Low banking penetration compared to other economies.
“The joint effort between the government and the private sector to strengthen financial education could transform a banking system still very dependent on cash and physical branches into a more digital one, capable of reaching the most remote areas of the country,” he reiterated.
Banking has made efforts to get closer to Mexicans and this was evidenced in the National Financial Inclusion Survey (ENIF) 2024since about half of the population used a branch of a bank or financial institution; while six out of 10 turned to an ATM.
Until last year, 77 percent of Mexicans had a financial product, which represents considerable advance with respect to 68 percent reported in 2021. Even more, the massive expansion of electronic or non -traditional payment means has intensified, in part, by the digitalization of financial services granted by intermediaries already established, such as banks.
Julio Carranza, outgoing president of the Association of Banks of Mexico (ABM), indicated that, in all aspects, credit is needed to grow And that is where the relevance of the accompaniment of the bench with Mexico lies.
Banking commitment
The fact that Mexico presents significantly lower credit penetration compared to OECD countries means a space for growth, he acknowledged Tomás Ehrenberg, director of Grupo Financiero VE for more.
“As long as we maintain a rule of law that allows us to recover the guarantees more efficiently, the bank credit will continue to grow,” Ehrenberg said.
In what all the interviewees agree that Mexican banks before the new global order that is now Credit to SMEs.
