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
Mexico celebrates Benito Juarez “The Lincoln of Mexico”
Benito Juarez’s birthday (March 21) is.
Presidential candidate José A. Meade warns about influence of organized crime in Mexican elections
One of the concerns for this.
K’u’uk: contemporary cuisine or pure alchemy?
Acknowledged at the Food and Travel.
Mérida, one of the best cities to live in Mexico (and the world)
Dan Prescher wrote an article for.
Hacienda Kancabchén: a call from a distant era just 15 miles away from Mérida
Hacienda Kancabchén maintains great part of.
Amazon launches new debit card in México
MEXICO CITY.- Banorte and Mastercard, together.
Over two thousand dogs and cats have been vaccinated in Valladolid
With the installation of seven locations.
Yucatecan pelicans and flamingos on the brink of becoming endangered species
“Pelicans and flamingos are some of.
Teacher Leaders Present an Innovative Blueprint for Relevant Learning in the Age of AI
What does the fourth industrial revolution.
New technology used in Yucatán to find people lost at sea
As part of a third aspect.