(Provides Financial institution of Mexico’s feedback, background particulars all through)
MEXICO CITY, June 16 (Reuters) – Over a 12 months into the COVID-19 pandemic, Mexico’s monetary system has demonstrated resilience and has a strong total place that may contribute to the financial restoration, the central financial institution’s monetary stability report mentioned on Wednesday.
Financial institution of Mexico’s stress exams of the monetary system reveal the Mexican banking system as an entire has the wanted ranges of capitalization to permit it to face six totally different simulated situations for the financial system within the report.
Nevertheless some banking establishments, representing a low proportion of system’s whole belongings, may have issue sustaining minimal ranges of capitalization required in sure antagonistic situations, mentioned the biannual report.
“The Mexican monetary system has continued to point out resilience and a typically strong place, characterised by capital and liquidity ranges above the relevant regulatory minimums,” mentioned the financial institution.
The Financial institution of Mexico mentioned the outlook for Mexico’s financial system has improved in keeping with higher prospects for world financial development. Nevertheless it mentioned that outlook was unsure because of the evolution of the pandemic and the opportunity of an uneven restoration.
Mexico’s financial system shrank by some 8.5% final 12 months, the sharpest stoop because the Nineteen Thirties. Mexico is predicted to recoup a few of that in 2021, with the federal government forecasting 6.5% development. (Reporting by Anthony Esposito; Modifying by Cynthia Osterman)