Given the inherent difficulty of measuring systemic risk and the probability of unintended consequences from direct interventions in credit markets, moral suasion could, in principle, be an advisable policy tool. 5 The base-case scenario for Mexico’s economic outlook, as posited by most analysts, assumes the continuation of favorable external conditions.
And, as a result of stable interest margins and improved cost controls, the return on assets (ROA) for community banks as a whole has remained well above industry standards for strong performance. Looking at other performance measures, we see that loan quality and capital ratios remain strong at community banks.