Mexico's financial system remains solid despite global risks
Mexico's Financial System Stability Council updated its risk assessment, concluding that the country's financial system remains solid and resilient. The Council held its sixty-fourth ordinary session on June 30, 2026.
Global headwinds persist
Global economic activity expanded at a similar pace in Q2 2026 as in the previous quarter, driven by a moderation in emerging economies and a rebound in advanced ones.
However, the global economic outlook remains uncertain due to the ongoing conflict in the Middle East and its potential impact on hydrocarbon and commodity prices.
Inflation has risen in both advanced and emerging economies since early 2026, primarily due to higher energy prices, remaining above central bank targets in some cases.
The US Federal Reserve maintained its federal funds rate target range at 3.5-3.75 percent in its April and June meetings.
Global financial market volatility decreased significantly in April but remains highly sensitive to geopolitical developments and potential corrections in technology sector valuations.
Domestic markets show resilience
In Mexico, local financial markets have operated orderly with relatively low volatility.
The Mexican peso appreciated by approximately 3 percent against the US dollar since the Council's last session, while government bond yields decreased across all maturities.
Major stock indices accumulated gains exceeding 1 percent.
National economic activity is anticipated to expand in Q2 after a contraction in the previous quarter, though downside risks persist from the complex global environment.
Mexico's sovereign credit rating was ratified by two of three major global agencies (one with a negative outlook), and downgraded by one notch by a third, but maintains investment grade status from all agencies.
Solid foundations, watchful eyes
The Mexican financial system maintains a solid and resilient position, capable of absorbing potential shocks.
Commercial banks comfortably exceed regulatory minimums for capital and liquidity, ensuring stability despite global pressures.
Although some non-bank intermediaries show vulnerabilities, their limited exposure to the wider system means they do not pose a systemic risk.