Mexico's Ministry of Finance and Public Credit released a communiqué on the Financial System Stability Council’s 60th ordinary session, reporting an updated balance of risks and concluding that Mexico’s financial system remains solid and resilient. The Council was also briefed on the latest Systemic Risk Perception Survey and on non-bank financial intermediation, which it did not view as a threat to financial stability. The update cites a global backdrop of trade tensions, heightened geopolitical conflict and elevated uncertainty, with recent forecasts pointing to a deceleration in global growth in 2025 and 2026. It notes easing inflation in many major economies and widespread monetary policy rate cuts since the Council’s prior meeting, while the US Federal Reserve kept its federal funds target range at 4.25% to 4.5% in May and June; global markets nevertheless saw episodes of high volatility, particularly in April. Domestically, local markets were described as orderly, with the Mexican peso appreciating by a little over 6% against the US dollar since the last session, government bond yields declining across most maturities (mainly at the short end), and major equity indices rising by around 5%; available information suggested low growth in the second quarter, while Mexico’s sovereign credit rating remained investment grade across agencies. The Council attributed the system’s resilience mainly to commercial banks’ capital and liquidity levels being comfortably above minimum regulatory requirements. While it flagged potential vulnerabilities at some non-bank financial intermediaries, their limited system share and low direct interconnectedness with other intermediaries, including banks, led it to assess the risk as not systemic, with competent authorities to continue monitoring. Survey results for the first half of 2025 indicated the most-cited financial risk was a deterioration in growth prospects, and the most-cited non-financial risk category was political, geopolitical and social risks.
Ministry of Finance & Public Credit (Mexico) 2025-06-26
Mexico's Ministry of Finance and Public Credit publishes Financial System Stability Council risk update finding the system solid and resilient
Mexico's Ministry of Finance and Public Credit reported that the Financial System Stability Council's 60th session concluded the financial system remains solid and resilient, despite global trade tensions and geopolitical conflicts. The Council noted easing inflation and monetary policy rate cuts globally, with the US Federal Reserve maintaining its target range. Domestically, the Mexican peso appreciated, bond yields declined, and equity indices rose, while potential vulnerabilities in non-bank financial intermediaries were deemed non-systemic.