Banking system in Mexico is healthy and well capitalized: CNBV

After the bankruptcy of Silicon Valley Bank -the number 16 operating in the United States-, the National Baking and Stock Commission (CNBV) assured that the banking system in Mexico is healthy and well capitalized.

The banks that operate in Mexico have solid levels of capitalization, liquidity and quality in their credit portfolio,” he highlighted.

In a statement, he explained that the banking system that operates in Mexico has significantly high levels in its Liquidity Coverage Ratio (CCL), with an average of more than 235 percent.

Likewise, he highlighted that none of the local systemically important banks (BBVA, Banorte, Santander, citibanamex, HSBC y Scotiabank), has a significant concentration in larger volume depositors or in any sector of economic activity in particular.

“In Mexico, the deposit structure of the banks shows an appropriate diversification with respect to the economic sectors served, as well as a very solid base of retail depositors, which makes it diametrically opposed to the SVB deposit portfolio. Due to the above, the causes are hardly bankruptcy of SVB would be replicated in Mexico”.

The CNBV reported that it will continue to monitor that the liquid assets reported by the banks do indeed comply with their main characteristic: that they can be sold very easily without any significant loss in value.

He stressed that, for the moment, it is not expected that in our country there will be an effect of distrust that motivates depositors to withdraw their money from any particular institution to deposit it in another, nor do they withdraw their money to transform it into another type of asset or keep it in cash.