The Bank of Mexico (Banxico) assured that financing to the private sector continues to decline and that credit granting conditions have worsened because it is much more difficult to obtain financing from banks.
The most worrying thing, he warned, is the fall in financing for companies, in whose intermediation margins rates make credit more expensive.
In the diagnosis presented by the members of the central bank’s governing board during the monetary policy meeting, it was revealed that credit to companies has declined for four consecutive quarters, while consumer credit, in its annual variation, has fallen practically in all its segments.
Some commented that only the mortgage showed positive growth.
One pointed out that in March the decrease in credit to small and medium-sized companies (SMEs) was 12% at an annualized rate.
He said that according to the survey on general and standard conditions in the bank credit market (EnBan), it has become more difficult to get credit from commercial banks.
Another indicated that the intermediation margins of business rates continue at levels higher than those prior to the pandemic.
Although one of the members stated that the delinquency rates remain at relatively low levels, he pointed out that in the use of resources the dominance of financing to the public sector prevails, while credit to the private sector remains deteriorated, despite the decrease in interest rates.
Some pointed out that the demand for liquidity from companies and households persists. One considered that this was due to precautionary reasons. Another added that domestic sources continued to expand, while external sources remain sluggish.
Regarding the behavior of the stock market, the majority highlighted that the stock market index registered gains. The above, due to a positive balance in the corporate reporting season, said one of the members of the Banxico governing board.
JM
– .
