Mexico’s financial system demonstrated resilience and growth throughout 2025, with increased financial intermediation with the private sector and robust capital, provisioning, and liquidity levels. This positive trajectory was further bolstered by the expansion of electronic payment methods, signaling a continued shift towards digital finance within the country. These developments, while encouraging, come amidst a global economic landscape marked by uncertainty, making the stability of the Mexican financial sector particularly noteworthy. Understanding the nuances of this growth – from credit expansion to deposit trends and regulatory compliance – is crucial for investors, policymakers, and citizens alike.
The year concluded with a 1.2% real increase in outstanding credit to the private sector in pesos during the final month, primarily driven by commercial lines. Financing to the private sector in pesos expanded by a significant 27.4% in real terms throughout 2025, with lines backed by collateral exhibiting the strongest dynamism. Notably, nearly 3,000 new mortgage loans were approved for families in December alone, bringing the total number of new borrowers in this segment to approximately 43,700 for the year. Simultaneously, lending in foreign currency experienced substantial growth, increasing by 4% month-on-month and a remarkable 73% over the entire year. This surge in foreign currency lending reflects both demand from businesses and individuals seeking to hedge against peso volatility and the availability of credit denominated in stronger currencies.
Shifting Asset Composition and Credit Dynamics
A key trend observed in 2025 was the “crowding in” of credit to the private sector, reflected in the reconfiguration of the financial system’s total asset composition. By December 2025, financing to companies and households accounted for 43.9% of total assets – an increase of 8.6 percentage points year-on-year – while financing to the public sector decreased to 27.8% of total assets, a reduction of 8 percentage points. This shift indicates a deliberate move towards supporting private sector activity, potentially driven by government policies aimed at stimulating economic growth and reducing reliance on public debt. The increased allocation of credit to the private sector is a positive sign for investment and job creation, but it also necessitates careful monitoring to ensure responsible lending practices and prevent the build-up of systemic risk.
The quality of this credit portfolio remains a key area of focus. The non-performing loan ratio for credit to the private sector stood at around 5.5% at the end of 2025. Breaking down this figure, household loan delinquency reached 9.3% of the portfolio dedicated to this type of borrower, while the irregularity rate for corporate financing was lower, at 2.5%. Importantly, provisions set aside by financial institutions covered 93% of outstanding irregular credit and 5.2% of total credit to the private sector, demonstrating a proactive approach to risk management. Maintaining adequate provisioning levels is crucial for absorbing potential losses and safeguarding the stability of the financial system.
Deposit Trends and Liquidity Management
On the deposit side, peso-denominated deposits from the private sector grew by 4.6% in real terms in December, driven primarily by demand deposits without remuneration (increasing by 15.4% monthly) and time deposits (up 4.3% monthly). Throughout 2025, the total balance of private sector peso deposits increased by 7.7% in real terms, largely due to the growth in time deposits. Foreign currency deposits held by the private sector also saw growth, increasing by 3.5% in December and 17.7% over the entire year, measured in original currency. This trend suggests a continued preference for holding assets in more stable currencies, potentially reflecting concerns about peso devaluation or broader economic uncertainty.
Liquidity management remained a priority for financial institutions. The systemic liquidity indicator in national currency, considering only available resources, decreased by 0.9 percentage points month-on-month to 13.3% (an increase of 1.4 percentage points year-on-year), reflecting adjustments to the minimum cash reserve requirement (EM). Including public securities used to meet the EM, the liquidity ratio in pesos reached 32.9% of deposits in the same denomination at year-end, 1.1 percentage points lower than the previous month (-2.9 percentage points year-on-year). Foreign currency liquidity decreased by 3 percentage points relative to corresponding deposits, reaching 58.9% in the same period (-13.1 percentage points year-on-year). These figures highlight the importance of maintaining sufficient liquidity buffers to meet potential demands and navigate unexpected shocks.
Capital Adequacy and Profitability
The financial system maintained a strong capital position throughout 2025. The capital integration ratio (RPC) remained around 28.6% of risk-weighted assets (APR) (-2.1 percentage points year-on-year), while the excess capital (RPC less the minimum regulatory requirement) totaled 253% of the regulatory requirement for the aggregate of entities (-32.3 percentage points year-on-year). The leverage ratio of the aggregated financial system – according to Basel Committee guidelines – reached 19.7%, significantly above the minimum regulatory requirement of 3%. This robust capital base provides a substantial cushion against potential losses and supports the continued provision of credit to the economy. However, the slight reduction in these indicators over the past 12 months aligns with the expansion of the aggregate balance sheet, suggesting a need for continued monitoring.
Profitability within the financial sector remained positive, with the accumulated return on assets (ROA) reaching 1% and the return on equity (ROE) reaching 4.4% for the year, although lower than the figures recorded in 2024. This indicates that while the sector is profitable, there is room for improvement in efficiency and revenue generation. Factors influencing profitability include interest rate margins, operating expenses, and the level of non-performing loans.
Key Takeaways
- Resilient Growth: Mexico’s financial system demonstrated strong growth and resilience in 2025, driven by increased private sector credit and robust capital levels.
- Shift in Asset Allocation: A notable trend was the “crowding in” of credit to the private sector, with a corresponding decrease in financing to the public sector.
- Strong Capital Position: The financial system maintained a strong capital base, providing a substantial buffer against potential risks.
- Liquidity Management: Financial institutions actively managed liquidity levels, adjusting to regulatory changes and maintaining adequate reserves.
Looking ahead, the Mexican financial system will likely continue to navigate a complex global economic environment. Monitoring key indicators such as credit growth, asset quality, liquidity, and capital adequacy will be crucial for ensuring continued stability and supporting sustainable economic development. The next key data release regarding the financial sector is scheduled for April 2026, when the Banco de México will publish its quarterly financial stability report.
We encourage readers to share their perspectives and insights on these developments in the comments section below. Your contributions are valuable to fostering a deeper understanding of Mexico’s evolving financial landscape.
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