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That's what the banks in Mexico are doing to curb crime

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The Bank managed to reduce default rates despite the fact that the current portfolio has grown. This means that with more customers in the banking sector, the level of people who do not pay is likely to rise, but that is not the case, said Fernando Sandoval, Executive Director of Financial Institutions at HR Ratings.

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For five years, the percentage of individuals owed to the bank reached 5%, which is almost three percentage points less than the one currently registered. While

For example, in 2014, the percentage of people who owe the bank reached a level of 5%, which is almost 3 percentage points less than the current one.

The fall in arrears is due to a correction in the risk policies of financial institutions, which, for example, already require more guarantees and are tighter in lending, said Eduardo Lopez Ponce, analyst at Grupo Financiero Ve por Más (Bx +).

Banks in Mexico divide their portfolios into three: commercial, which includes companies, financial corporations and government loans; consumption that includes credit cards, wage loans, personal loans and auto loans; and housing.

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In the first three months of this year, consumer credit was the lowest in terms of crime, moving from 4.5% in 2018 to 4.3% this year. Trade rose from 1.7% to 1.6%, and housing from 2.7% to 2.6% over the same period.

Banks like HSBC said they managed to reduce their crime in the first quarter due to the sale of a portfolio of problems, improved credit profiles and active portfolio management.

"The Mexican banking system has historically low levels of crime, with reasonable accommodation standards as a result of the lessons learned from the latest crisis," a Fitch Ratings report said.

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