April 29, 2004
One issue dominated the annual gathering of Mexican bankers in Acapulco in March, just as it does every year. Strange as it may seem to those poorly acquainted with Mexico's banking system, politicians are having to twist bankers' arms to make them lend money. Lending is a bank's main function in most countries, but not in Mexico. Bankers have resisted these demands for years, but the pressure is becoming unbearable.
Mexico is desperate for housing yet
mortgage lending by banks declined
Politicians and business leaders are fuming that banks are chalking up fat profits f
Politicians again are demanding that Mexico's banks lend more. As the pressure mounts, consumer finance companies are steam-rolling into the market.