The Mexican financial system demonstrates resilience and a strong position, supported by commercial banking whose capital and liquidity levels easily exceed regulatory minimums, as highlighted on Tuesday. Financial System Stability Council (CESF) in its latest analysis for 2023.
“He Mexican financial system generally continues to demonstrate resilience and a strong position, largely supported by commercial banking“I whose capital and liquidity levels easily exceed regulatory minimums,” the Board of Directors noted in a statement released to the media.
Regarding non-bank financial intermediaries, he emphasized that some organizations continue to face challenges related to “more restrictive financial terms“, in the context of greater risk aversion among investors in the sector.
However, the note clarifies, this situation “does not pose a risk of potentially systemic proportions, given the sector’s low degree of participation in the system,” as well as its limited relationship with the country’s banks and others. investors institutional.
On the other hand, the Board clarified that while “no significant implications for the stability of the financial system are expected as a result Hurricane Otisstruck the port of Acapulco, Guerrero, at the end of October, the authorities represented in this Council “adopted various measures aimed at mitigating them.”
In addition, the Council analyzed the results Systemic risk perception surveywhich indicate that “the risk, both internal and external, most frequently cited by financial intermediaries is higher-than-expected inflation.”
As for expectations regarding the main risks for the next six months, what stands out is “an increase in those corresponding to certain items of credit, market and liquidity risk.”
The Financial System Stability Council consists of the head Secretariat of Finance and Public Credit (SHCP), chaired by Rogelio Ramirez; governor Bank of Mexico, Victoria Rodriguez; SHCP Deputy Minister Gabriel Yorio and others.
In its statement, the Council said that in Mexico, in line with what has been observed at the global level, ” financial markets “They have exhibited generally favorable behavior and, while there have been periods of some volatility, it has remained limited and driven primarily by external events.”
Meanwhile, Mexican Peso continued to show strength “in an orderly environment and has strengthened slightly” since the last Council session, “making it the second best-performing currency in the emerging bloc this year.”
From my side, interest rates Government securities have been on a downward trend over the last quarter, declining across all indicators and more pronounced in the middle and long part of the curve.
“The above is largely supported by the country’s strong macroeconomic performance relative to other emerging economies, a context in which the extension of the Flexible Credit Facility was recently approved for a further two years from International Monetary Fundworth about $35 billion,” he concluded.
EFE
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
