Mexican banking system: assets
At the end of December 2022, the Mexican banking system’s total assets amounted to 12 trillion 524.4 billion pesos, which represented a real annual increase of 4.9% with respect to the end of December 2021.
At the same time, at the close of December 2022, the outstanding loan portfolio of the banking sector had a balance of 6 trillion 238.9 billion pesos, a real increase of 4.3% at a year-on-year rate.
The net result of the banking sector was 236.7 billion pesos at the end of December 2022, which is 20.6% higher in real terms than at the end of December 2021.
According to the government of Mexico, the Mexican financial system remained solid during the fourth quarter of 2022, with capitalization and liquidity levels of the banking system exceeding minimum regulatory requirements.
However, the Mexican financial system is expected to face a more complex and uncertain environment in the near term as a result of tighter global financial conditions, including high global interest rates, persistent inflationary pressures, lower growth prospects, and high volatility in international financial markets.
At the end of December 2022, the Capitalization Index (ICAP) of the commercial banking sector was 19.0%, compared to 19.5% at the end of December 2021.
Mexican banking system
Also at the end of December 2022, all commercial banks were in the first “early warning” category, indicating that institutions met the minimum capitalization requirements and were sufficiently capitalized in case of unexpected loss scenarios.
As of that date, no immediate supervisory actions were required by the National Banking and Securities Commission (CNBV).
On March 21, 2023, the National Commission for the Protection and Defense of Financial Services Users (Condusef) and the United Nations Development Program signed a Memorandum of Understanding, which formalized a strategic alliance with the objective of reducing financial stress in the Mexican population, focusing on community inclusion, health and financial resilience.
Finally, on March 22 and 23, 2023, the CNBV participated in the 213th meeting of the Basel Committee on Banking Supervision (BCBS).
At the meeting, the BCBS agreed to continue to closely monitor banking and market developments, as well as interest rate spikes in the global banking system, and to implement measures to enhance the resilience of the banking system and provide a fair regulatory environment for internationally active banks.