Financing of the private sector in Mexico, 2000-05 : evolution, composition, and determinants
AbstractThe objective of this paper is to describe the evolution, composition, and determinants of financing to the nonfinancial private sector in Mexico between 2000 and 2005. Supported by the macroeconomic environment and financial system reforms, total financing to the private sector (particularly consumer credit) increased relative to GDP, while accessibilityand affordability generally improved. Equity issuance did not play an important role during the period under consideration. Although the supply of financing shifted toward domestic nonbank providers, commercial banks remain the primary source of funding. Significant progress was made in cleaning up bank loan portfolios and in strengthening financial system soundness and infrastructure. The prospects for continued private sector financing growth remain very positive, but financing is not spread out evenly across all market segments. The authors conclude with some policy implications to further facilitate deeper and broader financing of the private sector.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 4264.
Date of creation: 01 Jun 2007
Date of revision:
Banks&Banking Reform; Financial Intermediation; Economic Theory&Research; Public Sector Economics&Finance; Financial Crisis Management&Restructuring;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-06-30 (All new papers)
- NEP-BAN-2007-06-30 (Banking)
- NEP-DEV-2007-06-30 (Development)
- NEP-HIS-2007-06-30 (Business, Economic & Financial History)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Beck, H.T.L. & Demirgüç-Kunt, A., 2006.
"Small and medium-size enterprises: Access to finance as a growth constraints,"
Open Access publications from Tilburg University
urn:nbn:nl:ui:12-3125429, Tilburg University.
- Beck, Thorsten & Demirguc-Kunt, Asli, 2006. "Small and medium-size enterprises: Access to finance as a growth constraint," Journal of Banking & Finance, Elsevier, vol. 30(11), pages 2931-2943, November.
- Zervos, Sara, 2004. "The transactions costs of primary market issuance : the case of Brazil, Chile, and Mexico," Policy Research Working Paper Series 3424, The World Bank.
- World Bank & International Finance Corporation, . "Doing Business in Mexico," World Bank Other Operational Studies 13430, The World Bank.
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