Mexico's central bank says financial system is solid, resilient

  • 12/8/2021
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MEXICO CITY, Dec 8 (Reuters) - Mexico"s financial system, especially its banking sector, is solid and resilient close to two years after the start of the coronavirus pandemic, the country"s central bank said on Wednesday. "The Mexican financial system continues to show resilience ... with higher capital and liquidity levels that comfortably meet regulatory minimums," the Bank of Mexico said in its December financial stability report. Stress tests reveal that Mexico"s banking system as a whole has the needed capital and liquidity levels to allow it to maintain levels above the regulatory minimums over a horizon of 36 months, said Banxico, as the central bank is known. It said that in some of the "extreme" simulated scenarios the stress tests showed certain banking institutions, representing a low percentage of total system assets, could face difficulties maintaining minimum levels of required capitalization. The central bank added that the Mexican economy"s rebound in 2021 would continue next year, though at a more moderate pace, and it did not rule out that sectors of the economy would continue to face uncertainty and perform at varying levels.

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