In December 2018, the once-a-year nominal growth fee inside the balance of the current portfolio of loans granted by business banks to the personal sector became 10.Zero % (4.Nine% in actual terms). Furthermore, the standard nominal annual increase rate in 2018 for the current portfolio of loans granted by using industrial banks to the non-monetary private sector was 12.0% (6.7% in real terms). This was beneath the nominal boom charge of 12.8% recorded in 2017. The 12.0% contribution to real annual growth of loans granted to the personal quarter in 2018, broken down into its three components, becomes eight. Five percent points (pp) from business loans; 1.7 pp from mortgages; and 1 Eight pp from patron loans.
The dynamism in 2018 changed in line with the moderate growth in the financial sector, as GDP grew by 2.1% in 2017, and preliminary information shows that this identical parent was slightly decreasing in 2018 (2.0%). A 2d component that could have restrained a progressing credit score performance in 2018 (compared to the dynamism discovered in 2017) became the growth in benchmark interest fees.
For instance, the TIIE 28 (Tasa de Interés Interbancaria de Equilibrio — Mexican 28-day Equilibrium Interbank Interest Rate) accelerated from 6.15% in January 2017 to 7.62% in December of that year and had risen to 8.Fifty-nine percent by December 2018. A 0.33 thing that could have limited the credit score boom is the lower annual increase in the range of workers registered by using the IMSS (Instituto Mexicano del Seguro Social — Mexican Social
Security Institute). Examples of precise elements that had a fine influence on credit overall performance in 2018, in particular on commercial enterprise and mortgages, consist of i) the substitute of overseas company financing with domestic bank loans, which boosted the increase of enterprise loans, particularly the ones of larger businesses; and ii) the expectation that mortgage hobby rates should increase at a higher rate than throughout 2018, which also raised the demand for this type of credit score because, for a certain sort of customer, suspending taking away a loan may want to involve improved price within the destiny if the hobby fee on these loans were also to increase through a higher percent. Finally, there had been no factors beneficial to the boom rate of client loans, which, to a massive extent, explains its modest average increase in 2018.
Traditional deposits reverse the downward trend, albeit at a moderate pace.
The first 8 months of 2018 saw a reversal of the downward trend in nominal boom fees for traditional deposits that became determined within the 2nd half of 2017. In December 2018, the nominal annual interest rate of conventional deposits in business banks (sight deposits + term deposits) became 7.Nine (% 2. Nine % in real terms). It is supposed that, in 2018, the common nominal annual growth fee of traditional deposits became 10.0%, a 1.5 pp decrease from the 2017 average. Nevertheless, a slowdown once again became determined from the beginning of September 2018, mediated by the slow recovery of real wages, a pace of economic activity that has remained fantastically stable, and the draw of better interest rates on term deposits.
