IMF Staff Country Reports

Mexico: Financial System Stability Assessment

November 22, 2016

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Mexico: Financial System Stability Assessment, (USA: International Monetary Fund, 2016) accessed November 21, 2024

Summary

This paper discusses the findings and recommendations made in the Financial System Stability Assessment for Mexico. Mexico’s economic fundamentals are strong. The medium-term outlook for the Mexican economy foresees steady growth underpinned by strong macroeconomic policies, broad reform initiatives, and relatively strong balance sheets. Key risks are external and include a U.S. growth slowdown, lower oil prices, and volatility in global financial markets. The financial system is broadly resilient, notwithstanding some weaknesses under certain adverse shocks. The solvency and liquidity stress tests of the banking system indicate that it can withstand severe adverse macro-financial shocks despite large capital losses in some cases.

Subject: Banking, Commercial banks, Credit, Economic sectors, Financial institutions, Financial sector, Financial sector policy and analysis, Financial sector stability, Money, Securities

Keywords: Banking sector, Commercial banks, Coverage ratio, CR, Credit, Development bank, Emergence liquidity assistance facility, Financial sector, Financial sector stability, Foreign currency, Global, ISCR, Liquidity regulation, Market liquidity pressure, Resolution regime, Return on equity, Securities

Publication Details

  • Pages:

    58

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Country Report No. 2016/361

  • Stock No:

    1MEXEA2016004

  • ISBN:

    9781475556384

  • ISSN:

    1934-7685