Commercial bank credit fell 7.1% in May: BdeM



Banco de México building, in file image.  Photo Roberto García Ortiz


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Banco de México building, in file image. Photo Roberto García Ortiz

Mexico City. Commercial bank credit stood at 7 trillion 643 billion pesos at the end of May, which meant a 7.1 percent drop compared to the balance of the same month last year, reported the Bank of Mexico (BdeM).

In its report on “Monetary aggregates and financial activity”, the central bank detailed that of the components of this indicator, the financing granted to the private sector, which constitutes 63 percent of the total, was 4 trillion 821 thousand million pesos, a annual decrease of 13 percent.

For its part, financing to the federal public sector, which represents 28 percent of the total financing granted by commercial banks, stood at 2 trillion 121 billion pesos, which implied a positive variation of 11.9 percent.

The balance of financing to states and municipalities, with a 4 percent share of the total granted by commercial banks, was 312 billion pesos, which translated into a decrease of 5.7 percent.

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  • Rain
    The weather forecast for this Thursday
    The wide circulation of a low pressure zone with high cyclonic potential will remain located off the coast of Veracruz, and in interaction with higher atmospheric instability will cause torrential rains in Puebla and Veracruz, and intense rains in Chiapas, Hidalgo, Oaxaca, Querétaro and San Luis Potosí. Likewise, heavy rainfall is expected in Colima, Edomex, Guanajuato, Guerrero, Nuevo León, Tamaulipas and Tlaxcala, Mexico City, Coahuila, Morelos and Tabasco.

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  • Rain
    The weather forecast for this Wednesday
    For this Wednesday, the low pressure area in the southwest of the Gulf of Mexico by Tropical Wave Number 35, which will be located off the coast of Jalisco, and a low pressure channel that will extend over the Sierra Madre Occidental and the center of the national territory, in addition to instability at high levels of the atmosphere and the entry of humidity from both oceans, which will cause rains of different intensities in most of the country.

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  • On Monday afternoon, a heavy rain was registered in the Zocalo of Mexico City, during the health emergency due to COVID-19 in Mexico. To avoid getting wet, they occupied windbreaks, umbrellas and even sheltered themselves in some establishments in the area, in Mexico, on August 17, 2020. (Photo by Gerardo Vieyra/NurPhoto via Getty Images)
    The weather forecast for today
    The SMN reports that the Tropical Wave Number 34, which will slowly travel through the southeast and south of Mexico, in interaction with a low pressure channel located on the slope of the Gulf of Mexico, which will cause heavy rains in Chiapas, Guerrero and Oaxaca. Precipitation is also expected in other entities of the country.

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Finally, the balance of financing to other sectors, which includes financing to IPAB and Fonadin, and which makes up 5 percent of the total, stood at 387 billion pesos, a negative rate of 15.9 percent.

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Regarding the financing granted by development banks, in May 2021 it presented a balance of one trillion 810 billion pesos and had a reduction of 6 percent at the annual rate.

Of this amount, 600 billion pesos corresponded to financing channeled to the private sector, with a participation of 33 percent of the total, which meant a decrease of 12.4 percent.

Financing to states and municipalities, which represents 14 percent of the total, reported a balance of 244 billion pesos, presenting an expansion of 7.1 percent.

Financing to the federal public sector, whose proportion is 41 percent of total government banking, stood at 743 billion pesos, which implied a decrease of 1.4 percent per year.