MEXICO CITY, Dec 7 (Reuters) – Mexico’s monetary system has a resilient and strong place, the nation’s central financial institution mentioned on Wednesday throughout the launch of its monetary stability report, including that sure vulnerabilities and dangers seen throughout the pandemic have eased.
Banxico, as Financial institution of Mexico is thought, mentioned “business banks have capital and liquidity ranges properly above regulatory minimums” in its biannual report.
The outcomes of stress exams present that the “capitalization index of banking establishments in Mexico would enable the system, on the mixture stage and within the six eventualities thought of, to conclude the simulation with ranges properly above regulatory minimal, together with capital buffers,” Banxico mentioned.
Nevertheless, Banxico underscored that Mexico is dealing with a “extra complicated and unsure setting” characterised by excessive inflation, deteriorating progress prospects, and tight international monetary situations.
Banxico additionally warned of the potential for a better tightening of world monetary situations, lower-than-expected international financial progress, an extra weakening of mixture demand, and additional downgrades to Mexico and state oil firm Pemex’s credit score scores as dangers to monetary stability.
Reporting by Isabel Woodford and Anthony Esposito, Modifying by Alistair Bell