The Central Bank of Mexico published the Financial System Stability Council's updated balance of risks, concluding that Mexico's financial system remains solid and resilient despite a complex external backdrop. The council said the system as a whole is in a position to absorb shocks linked to current conditions while preserving the stable functioning of markets and intermediaries. The update points to persistent global risks from prolonged geopolitical tensions, possible inflation effects from the Middle East conflict, shifts in global and local financial conditions and potential corrections in some asset valuations. In Mexico, local financial markets have remained orderly, with the peso appreciating about 3 percent against the U.S. dollar since the council's previous session, government bond yields falling across maturities and main stock indexes posting gains of more than 1 percent. The council also said available data suggest stronger domestic economic activity in the second quarter after the previous quarter's contraction, although spare capacity and significant downside risks remain. For the financial system, commercial banks continue to exceed minimum regulatory capital and liquidity requirements, while some nonbank financial intermediaries show vulnerabilities tied to low profitability and weaker liquidity, but the exposure of banks and the wider system to those entities is low and does not pose a systemwide risk. During the session, the council was also briefed on financial activities outside traditional regulation and reviewed the first-half 2026 Systemic Risk Perception Survey. Surveyed intermediaries most frequently identified a deterioration in growth prospects as the main financial risk, citing the global economy for external risks and the domestic economy for internal ones, while political, geopolitical and social risks were the most cited nonfinancial category. The council said it will continue monitoring international and domestic economic and financial conditions and the performance of the financial system and its participants, and may act within its legal powers if needed to safeguard financial stability.
Central Bank of Mexico2026-07-01
Central Bank of Mexico updates financial stability risk assessment and says the system remains solid and resilient
The Central Bank of Mexico published the Financial System Stability Council's updated risk assessment, which concludes that Mexico's financial system remains solid and resilient. Commercial banks continue to exceed capital and liquidity minimums, and vulnerabilities at some nonbank intermediaries are not seen as a systemwide threat. The council highlighted persistent global geopolitical and financial risks and said it will continue close monitoring.