Mexico Banking Sector: Improving Economy, Falling Interest Rates To Support Loan Demand

• Asset, loan and deposit growth will rise in Mexico in the coming months, as economic growth picks up, interest rates continue to fall and US trade tensions fade.
• Fitch maintains its constructive long-term outlook on the sector, given Mexico’s economic upside and relatively low levels of banking sector penetration.
• The forecast is for loan growth to accelerate to 5.5% y-o-y in 2020, from an estimated 4.5% in 2019. This is down from our previous forecast of 9.8%, as there is now less optimism about the Mexican economy in 2020.

(Source: Fitch)