These challenges, however, also offer opportunities. There can be positive outcomes if the correct procedures and frameworks are put in place and these challenges can also serve to harness fully the growth enhancing potential of the financial sector and enhance its role in the region’s development.
In a structural sense, the reactivation of economic activity and domestic absorption in particular has been possible thanks to Mexico’s macroeconomic fundamentals, including contained public debt with rising maturities, moderate inflation rates, and a well-capitalized, provisioned and liquid banking system. Indeed, the stable macroeconomic environment has enabled bank lending to firms and households to support dynamic domestic investment and consumption.