Mexico’s banking system will not be impacted by the 2024 elections: Fitch

Fitch Ratings disregarded the possibility that Mexico’s banking sector will be negatively affected by the country’s 2024 elections, either in terms of its financial performance or loan demand, as it anticipates a peaceful and orderly transition.

The Mexican banking sector’s financial performance and credit growth have been mostly unaffected by these eras, according to the rating agency, and the nation has enjoyed a protracted period of macroeconomic stability.

«We expect the banking industry to face similar circumstances during the 2024 presidential election period. We do not expect significant disruptions to banks’ financial performance or credit growth, as current expectations point to an orderly and smooth presidential transition, regardless of the election outcome,» he said.

The company claimed that although all parties have pledged to encourage private sector investment and maintain the nation’s socioeconomic stability, the actual effects would not become clear until the final candidates and their separate political programs are chosen.

In this regard, he highlighted that upsetting changes in economic policy that impact investor confidence and growth could have a negative impact on the operational environment and the financial performance of Mexican banks.