Mexico Banking Sector: Covid-19 Sharply Increases Risks

• Asset, loan and deposit growth will decelerate rapidly in Mexico in the coming months, as economic growth and financial markets are hit hard by the global Covid-19 pandemic.
• While support from the Banco de México will help prevent a major banking crisis, risks to the view are slanted to the downside.
• Despite the near-term headwinds, Fitch maintains its constructive long-term outlook on the sector, given Mexico’s economic upside and relatively low levels of banking sector penetration                 

(Source: Fitch)