Home » Business » La Jornada – Mortgage credit has slowed down; employment could lessen falls: BBVA

La Jornada – Mortgage credit has slowed down; employment could lessen falls: BBVA

Until April and practically a year after the start of the pandemic, the credit given by banks for housing is in a slowdown, despite being the only portfolio that managed to grow in the midst of the crisis and that kept the financing of these institutions reveal official figures and a study by BBVA Mexico.

According to the most recent figures available from the National Banking and Securities Commission (CNBV), at the end of the first quarter of this year, the balance of the current portfolio in the housing segment stood at 976 billion pesos, which which represented an increase of 3.7 percent compared to the same period in 2020.

However, when comparing the growth that occurred between March 2019 and 2020, this was 6.3 percent, with a portfolio of 899 billion pesos.

“The loss of jobs – especially permanent ones – that began in April 2020 has not yet translated into less financing, due to the lag with which formal employment impacts this portfolio, although the slowdown has already been continuous so far of the year ”, said BBVA in the study Banking situation. First semester of 2020.

The fact that the housing loan portfolio has been the only one that grew in the midst of the crisis that generated the Covid-19 pandemic is due to the fact that regardless of the loss of jobs and the lack of a clear rebound in economic activity, the households with higher income levels were less affected by unemployment, the bank said.

The pace of job recovery as well as the dynamics of the real salary of Mexican families will set the performance pattern for said portfolio. “The recovery of employment indicators must be strong and early enough to offset the lagged effect of job losses during the pandemic,” he added.


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