The delinquency of credits via payroll is increasing

Daniel Becker, president of the Association of Banks of Mexico (ABM), said that despite the fact that the Bank of Mexico (Banxico) has raised the reference interest rate to contain inflation, delinquency remains at stable levels.

“This does not mean that we can claim victory, but I think it speaks of a very good behavior of the Mexican user, added to the constant and fierce competition in some sectors,” he said.

For BBVA Mexico, another reason for the lower delinquency of consumer loans has been good risk management by financial institutions.

“Labor market indicators have registered a good performance, contributing to a lesser impact on the payment capacity of households, even in an inflationary scenario such as the one that has arisen,” the bank highlighted.

Payroll credits, whose growth is directly linked to the creation of formal jobs, reached an amount of 323,000 million pesos until November of last year.

Banxico’s forecasts anticipate that in 2023 between 450,000 and 650,000 new jobs will be generated with the IMSS, a lower figure than the 752,748 jobs created last year.

The bankers point out that the increase in delinquencies has not reduced the appetite of clients for credit or the increase in interest rates, and that this demand for financing will be due to GDP growth.

“When there are growth expectations, even if the (interest) rate rises, there is still appetite for credit,” Becker said.