Financial Deepening in Mexico
International comparisons reveal that—even controlling for a host of explanatory factors—credit depth is exceptionally low in Mexico. Using panel data methods linking credit growth and fundamentals, this paper estimates a long-term gap between actual and expected credit of about 40 percent of GDP. P...
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International Monetary Fund
Janu
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| Online Access: | http://hdl.handle.net/11742/39059 |
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| author | Alexander Herman, Alexander Klemm |
| author_facet | Alexander Herman, Alexander Klemm |
| author_sort | Alexander Herman, Alexander Klemm |
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| description | International comparisons reveal that—even controlling for a host of explanatory factors—credit depth is exceptionally low in Mexico. Using panel data methods linking credit growth and fundamentals, this paper estimates a long-term gap between actual and expected credit of about 40 percent of GDP. Possible explanations include the history of banking crises, the large informal sector and an inefficient legal system. Using a disequilibrium regression approach, this paper also finds that supply factors are particularly important as determinants of credit in Mexico. Recent financial reforms address many of the supply constraints, but their success will depend on implementation. The main challenge going forward will be to support financial deepening, while limiting risks to financial stability. |
| format | Báo cáo |
| id | oai:http:--thuvienso.quochoi.vn:11742-39059 |
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| publishDate | Janu |
| publisher | International Monetary Fund |
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| spelling | oai:http:--thuvienso.quochoi.vn:11742-390592017-09-06T02:31:22Z Financial Deepening in Mexico Suy giảm tài chính tại Mê-hi-cô Alexander Herman, Alexander Klemm Mexico Credit gap credit growth financial development International comparisons reveal that—even controlling for a host of explanatory factors—credit depth is exceptionally low in Mexico. Using panel data methods linking credit growth and fundamentals, this paper estimates a long-term gap between actual and expected credit of about 40 percent of GDP. Possible explanations include the history of banking crises, the large informal sector and an inefficient legal system. Using a disequilibrium regression approach, this paper also finds that supply factors are particularly important as determinants of credit in Mexico. Recent financial reforms address many of the supply constraints, but their success will depend on implementation. The main challenge going forward will be to support financial deepening, while limiting risks to financial stability. January 2017 Báo cáo http://hdl.handle.net/11742/39059 application/pdf International Monetary Fund International Monetary Fund |
| spellingShingle | Mexico Credit gap credit growth financial development Alexander Herman, Alexander Klemm Financial Deepening in Mexico |
| title | Financial Deepening in Mexico |
| title_full | Financial Deepening in Mexico |
| title_fullStr | Financial Deepening in Mexico |
| title_full_unstemmed | Financial Deepening in Mexico |
| title_short | Financial Deepening in Mexico |
| title_sort | financial deepening in mexico |
| topic | Mexico Credit gap credit growth financial development |
| url | http://hdl.handle.net/11742/39059 |
| work_keys_str_mv | AT alexanderhermanalexanderklemm financialdeepeninginmexico AT alexanderhermanalexanderklemm suygiamtaichinhtaimehico |