Some Mexican banks are lowering credit card spending limits and raising consumer lending standards in the face of an economic slowdown, rising interest rates and the U.S. election victory of Donald Trump, Reuters reports.
After a period of robust overall credit growth, Mexican banks are cutting credit card exposure to counter a potential rise in consumer defaults and the risks of an economic shock should Trump restrict U.S. trade and business with Mexico.
The moves come on concerns Latin America’s second largest economy could see more turbulence in 2017 after its peso currency lost 19 percent this year, largely on fears of a Trump administration.
Lenders would see profits hit if Trump scraps the North American Free Trade Agreement or discourages U.S. companies from moving to Mexico, as he vowed to do on the campaign trail, some banks and analysts said.
“That measurement of how much he is going to be able to do is what we have to analyze every day,” said Miguel Angel Laurencio de la Vega, director of investor relations at Grupo Financiero Banorte (GFNORTEO.MX), the country’s fourth-largest bank by assets, referring to Trump.
Banorte, in addition to banks such as BBVA Bancomer (BBVA.MC) and Grupo Financiero Inbursa (GFINBURO.MX), told Reuters they were moving to tamp down exposure to credit cards, a profitable but risky area that tracks the broader economy.
Banorte, the largest Mexican-owned bank, said it could reduce credit card limits for new customers if necessary.
To read complete article click here.
more recommended stories
Spanish oil company Repsol enters the Mexican market
Seven gas stations in Baja California.
Balché: Sacred Maya drink
The balché is a Maya ceremonial.
Satellite Wi-Fi will take the Internet to disconnected Mexicans
In Mexico there are 63.9 million.
Fundraiser event held in Valladolid to benefit DIF and Lions Club
A total of 21 designers from.
Once again, crime rates decrease in Yucatan: Semaforo.com.mx
During the first months of 2018,.
New Viva Aerobus Mérida-Tuxtla Gutiérrez direct flight to start operations in June
The low cost airline Viva Aerobus.
Yucatan Real Estate prices on the rise: Propiedades.com
The prices of houses in the.
Beach Erosion, a fight against nature in Yucatan
The waves beat without mercy the.
6 police officers and 10 suspects killed in shootouts in Guerrero
A total of sixteen people —.
Remnants of migrant caravan move toward US-Mexico border
The remnants of a migrant caravan.