In 2022 bank credit recovered after the effects of the pandemic

As a result of the health emergency caused by Covid-19, most of 2020 and all of 2021, commercial bank credit to the private sector fell month after month.

The highest points were March, April, May and June 2021 when bank credit plummeted 12.5, 14.6, 13.1 and 11.8% in its real annual comparison, according to information from the Bank of Mexico (Banxico). The backlash of the contraction in credit still reached the first months of 2022.

However, as of April 2022, this trend began to reverse with growth that has been on the rise since then.

Thus, after 20 months of consecutive falls, last April commercial bank credit to the private sector grew 0.7 percent.

In May of this year the real annual rate increase was 2.2%, in June 2.9%, in July 3.2%, in August 3.4%, in September 3.9% and in October it reached an increase of 4.5%, better level since May 2020.

Boost consumer credit

Although as of last October all the portfolios already registered growth, it is the consumer portfolio that has driven the increase in the total portfolio the most.

It was in January of this year when consumer credit showed its first real annual rise after 21 months of decline, being the strongest in February 2021, when it contracted 13.6 percent. Last October, however, the growth of this portfolio was 8.3%, a level not seen in years.

On the other hand, although a little later, the portfolio of banking companies has already registered real growth since last May, and in October the increase was 3.4 percent.

And the bank’s housing credit is the only one that has not fallen for a single month, not even in the most difficult moments of the pandemic.

What yes, is that today it is at levels below those registered before the health contingency. While in October of this year growth was 3.4%, at the beginning of 2020 it was around 7 percent.

Some specialists estimate the same trend for bank credit, the association is confident that financing will continue to grow throughout the year.

eduardo.juarez@eleconomista.mx