After its session last Friday, the Financial System Stability Council (CESF) determined that the sector did not suffer relevant effects, after the difficulties recently faced by some banks in the United States and Europe, which led to its intervention.
The body made up of the different financial authorities of the country, stressed that the difficulties faced by certain banking institutions have had a limited impact at the local level.
In addition, he highlighted that the Mexican financial system continues to show resilience and, in general, a solid position with levels of capital and liquidity that easily exceed the regulatory minimums.
“In this session, the council updated its balance of risks and analyzed the challenges facing the Mexican financial system in light of the situation presented by the recent events that affected foreign banks. It concluded that it did not suffer relevant effects and maintains its resilience, ”he explained.
Global risks persist
The CESF mentioned, however, that global risks to financial stability persist, since, on the one hand, uncertainty about the performance of the banking sector in some advanced economies could return, with the potential to generate greater volatility in the markets.
Likewise, he pointed out, there is a risk that inflationary pressures will continue, that geopolitical tensions will worsen, and that financial conditions will tighten more, with the possible implications that this would have on national markets.
“Furthermore, the risk persists that the recovery process of the world economy will be delayed by a slowdown greater than anticipated,” he pointed out.
Local economy grows at a moderate pace
Domestically, the agency argued that national economic activity has continued to grow at a moderate pace, and going forward the risk of a further weakening of domestic demand persists, both due to consumption and investment, while the dynamism of exports could be affected by the current environment.
“The sovereign credit rating continues to maintain investment grade with a stable outlook, the same as Pemex’s,” he said.
Regarding world economic activity, he said that it continues to show some recovery, although the prospects for 2023 point to a slowdown in the growth rate.
He explained that global inflation continued to decrease due to lower pressures in food and energy prices, although in some economies this decrease was less than anticipated and said variable remains at high levels.
“Thus, the forecasts for monetary policy in the main advanced economies presented a high degree of uncertainty in recent weeks, he stressed.
Some IFNB’s, with difficulties
The CESF report informed that some Non-Bank Financial Intermediaries (IFNB’s) have faced difficulties associated with the increase in cost and less availability of their funding sources, and although it is not ruled out that these could be extended to others, it specified that the sector has a small participation and it is relatively little interconnected with the system as a whole, so this situation does not represent a potentially systemic risk.
