They reported a 7.3% drop in bank credit

Financing granted by commercial banks decreased by 7.3% in real annual terms during July 2021.

Among them, financing to the private sector stands out, with a decrease of 9.4%; directed to the federal public sector, a decrease of 0.7%; which were awarded to states and municipalities with a decrease of 2.2% Bank of Mexico (Banxico).

In his report on cash totalsThe agency detailed that the current private sector loan portfolio from commercial banking was reduced by 9.7% in real annual terms in July 2021.

Meanwhile, financing granted by development banks in July 2021 recorded a real annual decrease of 5.4%.

Within this indicator, financing to the private sector decreased by 12.7%. Those granted to the public sector showed an increase of 1.1%, the percentage allocated to states and municipalities decreased by 0.1%, and the percentage granted to other sectors decreased by 10.2%.

Internal financing of the non-financial private sector amounted to 7,883.3 million pesos by the end of the second quarter of 2021, with a contraction of 7.9%.

With regard to the internal financing of non-financial private companies, which is composed of credit from financial intermediaries, it recorded a decrease of 13.6%.

On the other hand, financing granted to households decreased by 1.9%.

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