Banco de México highlights the stability of the financial system despite the weakness of the economy By Reuters

MEXICO CITY (Reuters) – The Mexican financial system maintains a solid and resilient position despite global and domestic risks and the “notable weakness” of the economy, the Bank of Mexico said on Wednesday in its semiannual financial stability report.

In the report, the central bank attributed the stability of the financial system in Latin America’s second-largest economy to strong institutions, noting that Mexico’s banking system has capital and liquidity levels above regulatory minimums.

“While the vulnerabilities and risks identified for financial stability are generally considered limited, unexpected or severe shocks could affect its proper functioning,” Banxico, as the central bank is known, noted in the report.

Mexican markets have experienced considerable volatility in the second half of the year, amid events arising from the elections in Mexico and its main trading partner, the United States.

However, markets have behaved in a “relatively orderly” manner despite the volatility, particularly of the peso, which has depreciated in recent months.