With the US as its top export market and substantial exposure to oil prices, Mexico is precariously placed if the US recovery stalls or the oil price remains low. Despite this, the country’s largest banks are well capitalised and remain optimistic for the future, as Jane Monahan reports.
While declining oil prices have chilled investor interest in Mexico’s newly opened energy sector, the longer term prospects for the country's economy have never been better. Silvia Pavoni looks at the lasting impact of 2013's market reforms and of the country’s growing infrastructure pipeline.
Trade finance is emerging as a key part of the Latin American banking business model and is bound to be a hot topic on the agenda at this year's Felaban annual meeting being held in Colombia in November. Ahead of this, The Banker speaks to experts about the challenges and opportunities that this growing business line is creating in the Latin American market.
If the early 2000s were all about the emerging economies of Brazil, Russia, India and China, now attention is shifting to the up-and-coming countries of Mexico, Indonesia, Nigeria and Turkey – the MINTs. And with rapid economic growth predicted, retail banks in these countries will be under enormous pressure to keep up.
With the US and European crises behind them, South American trade figures are back on an upward slope. Local banks are paving the way for improved relations with China, and Chinese banks are increasing their presence in the region. Even the proximity of the US could have its benefits.
The governor of Mexico's central bank, Agustín Carstens, talks to Silvia Pavoni about the legitimacy of the processes for selecting both the head of the International Monetary Fund and the World Bank, as well as Mexico's role within Latin America.