Mexican banks are likely to take a more stringent approach to loans and investments, at least in the first half of 2021, as the country works through the Covid-19 pandemic and its consequences.
The nation’s banks were quick to recognise the risks associated with the pandemic in 2020 and, despite being well capitalised at the outset, are still hyper-vigilant a year into the pandemic. “Banks entered the crisis in 2020 with good levels of capitalisation, good profit margins, healthy assets and, above all, strong liquidity,” says Alejandro Tapia, senior analyst at Fitch Ratings. But, he adds: “In times of crisis, Mexican banks tend to be very prudent and this crisis is no different.”
