Drawing on my joint research with Gian Maria MilesiFerretti of the International Monetary Fund, Figure 5 shows the expansion in the size of international balance sheets (relative to world GDP) since 1990.
In particular, bank credit expansion needs to pick up pace in a sustainable way.2 In this aim, the first order of business is to understand why Mexico is behind other nations in building a deeper, more accessible banking system. If we turn to recent history, higher levels of financial deepening have been attained but not sustained.