Mérida, Yucatán.- Despite the fact that, according to information from the World Bank, commercial bank credit to the private sector in Mexico, reached 40% of the Gross Domestic Product (GDP) in 2022, there is still work to be done in this area, he stated Julio Carranzawho this Friday, March 17, took office as the new president of the Association of Banks of Mexico (ABM).
At the closing of the 86 Banking Conventionhighlighted that there has never been more credit in Mexico than now: “Even though we doubled credit in the last two decades, it is low when we compare it with other countries.”
He explained that in Brazil, for example, credit as a proportion of GDP is 70%, and in Spain 109 percent.
He stressed that, in order to bridge this gap, banks in Mexico has an additional 1.4 trillion pesos to lend, and pointed out that of 100% of the credit, half goes to companies, 40% to families and 10% to the government. “There is still a long way to go in the country.”
Greater attention to SMEs
Julio Carranza highlighted that small and medium-sized enterprises (SMEs) receive only 15 out of 100 pesos of credit, despite the fact that they contribute 8 out of 10 jobs.
The reasons, he said, are reduced credit history, increased risk, and that some are part of the informal economy.
“This is where the work of the commercial banks and the authorities can significantly encourage SMEs to have greater access to credit.”
He pointed out that he will work with the authorities to generate guarantees that allow more credit to be granted to this segment, in a responsible manner.
The new president of the ABM highlighted that just seeking credit to continue growing will be one of the relevant issues during his administration, as well as a bank closer to the people and lower transaction costs.
He stressed that bank credit to the private sector regarding the economy has grown steadily during the last two decades, for which the care of public finances and the healthy development of the system have been decisive.
Ready to lower rates as soon as the reference rate drops
The president of the ABM explained that Mexico today has great potential and opportunities, mainly due to the phenomenon known as nearshoringbut he considered that it is important to continue with the crusade to lower inflation, as much as possible, so that those who have less are not affected.
In this sense, he assured that the banks are ready to lower interest rates as soon as the reference rate begins to be lowered by the Bank of Mexico (Banxico).