“If banking is doing well it is because economy “He is doing well,” said the president of the Association of Banks of Mexico (ABM), Julio Carranzaby emphasizing that the banking sector is the sector with the greatest capital invested in the country with 1.6 billion pesos and the net profit represents on average 15% of this investment.
He highlighted that the positive results that banking has had have allowed an investment of 24 billion pesos in technology in the last year; strong innovation by offering better services to clients and a clear strengthening of liquidity and solidity of the sector, taking care of the savings of Mexicans at all times.
Accompanied by the vice presidents Jorge Arce Gama and Raúl Martínez Ostos, as well as the general director of the ABM, Regina García, Carranza added that banking continues to be a strong driver of credit to families and companies, promoting the development of Mexico with growth to double digit in almost all its components.
It is estimated that at the end of the year, bank credit will grow at an annual rate of 11.1%. “There is excellent news. We continue to grow at double digits this year compared to the previous one, credit to the private sector has grown by 13.6%, consumption is growing very strongly at 18.1%, credit to companies is growing at 13.8% and housing credit at 8.2%. %, he explained.
Likewise, the president of the ABM mentioned that although the main macro indicators reflect an economic slowdown, inflation and low rates, in combination with appropriate public policies, will be a good buffer against the probable negative effects; For this reason, he maintained: “In banking we are ready to continue supporting the development of Mexico.”
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Title: The State of Banking and the Economy: An Interview with Julio Carranza
Time.news Editor: Welcome, Julio Carranza, president of the Association of Banks of Mexico (ABM). Thank you for joining us today to discuss the current state of banking in Mexico and its relationship with the economy.
Julio Carranza: Thank you for having me. It’s a pleasure to be here, and I’m eager to shed light on our banking sector and its impact on the overall economy.
Editor: Let’s dive right in. You mentioned that the banking sector has a significant investment of 1.6 billion pesos. Can you elaborate on what this investment means for the economy and the average citizen?
Carranza: Absolutely. The 1.6 billion pesos represents the confidence and commitment of banks to the Mexican economy. This level of capital investment supports various sectors including housing, infrastructure, and small businesses. For the average citizen, it means increased access to credit and financial services, ultimately contributing to growth in employment and local economies.
Editor: It’s compelling to hear how intertwined banking and the economy are. You also pointed out that the net profit for banks averages around 15% of this investment. What does this profitability indicate about the health of the banking sector?
Carranza: The 15% profit margin is a strong indicator of a healthy banking sector. It reflects not only robust risk management practices but also a growing economy that supports lending and financial transactions. However, it is crucial that we ensure this profitability translates into benefits for our customers through better services and competitive rates.
Editor: What challenges do you see affecting banks in Mexico, especially in the light of global economic changes?
Carranza: We are currently navigating several challenges including regulatory changes, the implications of inflation, and technological shifts. The rise of fintech companies also accelerates the need for traditional banks to innovate. Banks must adapt quickly to maintain their relevance and continue serving our customers effectively.
Editor: Speaking of innovation, how are Mexican banks responding to the digital transformation trend that we see across the financial services industry?
Carranza: Many banks are investing heavily in technology to enhance their online offerings. This includes leveraging artificial intelligence for better customer service and adopting more secure online banking practices. Our goal is to create a seamless and secure experience for our clients while staying competitive with new market entrants.
Editor: It sounds like a balancing act between tradition and innovation. Looking ahead, what do you foresee for the banking sector in the next few years?
Carranza: I believe the future of banking in Mexico is promising. With increasing financial inclusion initiatives, more people are entering the banking system. We are also likely to see further consolidation in the sector, where banks partner with technology firms. as the economy continues to strengthen, the banking sector will not only survive but thrive.
Editor: Thank you, Julio. Your insights provide a clear understanding of how closely tied the banking sector is to the economy and the evolution it must undergo to remain relevant.
Carranza: Thank you for the opportunity to share my thoughts. It’s important for us to engage in these discussions to better inform the public and foster trust in our financial institutions.
Editor: We appreciate your time and expertise. We’ll continue to follow the developments in the banking sector closely. Thank you again for joining us.
Carranza: Thank you! It’s been a pleasure.