Mexican Banking Sector Gradually Recovering From COVID-19 Shock

• Fitch Solutions expects that credit growth in Mexico will rise to 1.4% y-o-y in 2021, up from -1.2% in 2020, as the economy rebounds and monetary conditions remain loose.
• Other indicators of the banking sector’s health, including leverage and non-performing loans, do not suggest the banking sector’s stability is likely to be threatened in the near term.
• Fitch Solutions maintains its constructive long-term outlook on the sector, given Mexico’s economic upside and relatively low levels of banking sector penetration.

(Source: Fitch Solutions)