Foreign banks’ faith in Mexico will endure

Subject

Mexican banking.

Significance

On March 10, Japan's Mizuho launched a commercial bank in Mexico, becoming the latest foreign bank to begin operations there. Mexico's banking sector has been one of the fastest-growing and most attractive in Latin America in recent years, with several new players entering and double-digit loan growth.

Impacts

• Major international banks’ continued interest in Mexico shows confidence in an economy and a government under pressure.
• Banks that are willing to lend heavily will be important for the struggling Mexican economy.
• Mexican FDI will benefit from investments by foreign banks despite a predicted fall in FDI overall.