•CLOSURES: Mexican banks are rushing to restructure in the face of the coronavirus downturn with the largest banks shutting permanently nearly 200 branch offices and experts predicting a consolidation within the sector as a consequence of higher delinquency rates.
•BANKS: Between December 2019 and July 2020, Mexico’s seven biggest banks closed down 186 branch offices across the country according to banking and securities regulator (CNBV). Nearly 70% of the closures were made by Inbursa, the bank owned by Mexican billionaire Carlos Slim.
•CONSOLIDATION: With Mexico reporting a historic 17% GDP contraction during the second quarter, experts believe that bank delinquency rates could triple in the coming months particularly among small and medium enterprises (SMEs) forcing a consolidation within the banking sector.
•CRISIS: “I see a very high probability that more small banks will close, some of them are very poorly diversified, they are too loaded towards few sectors or too loaded towards SMEs, which will continue to struggle a lot with the pandemic”, said Jorge Martínez, head of MG-RISK Counseling Associates.
