Mexico Banking Sector: Credit Demand To Slump Amid Weak Sentiment

• Asset growth and lending will slow in Mexico's banking sector over the coming quarters, in line with weaker investor sentiment that will drive a general economic slowdown. 
• Investor sentiment is weakening under the administration of leftist populist President Andrés Manuel López Obrador (AMLO), sapping credit demand, especially for commercial loans. 
• Fitch forecast total asset growth to slow to 5.0% y-o-y in 2019, from 6.0% in 2018, with client loan growth decelerating to 7.0%, from 9.3%. 

(Source: Fitch)