The content has been shared, if you want to share this content with other users click here.
Despite less activity from public sector lenders, Mexican banks were going full speed ahead in their mortgage businesses in January, and BBVA's (NYSE: BBVA) research arm expects that segment to finish the year with 15-20% growth in lending.
During January, mortgage loans granted by private sector banks were up by 32.2% compared with the year-ago month, to 3.69bn pesos (US$308mn), according to a BBVA Research report.
In contrast, lending by government mortgage lender Infonavit, which accounted for about 58% of loan activity during the month, was down by 14%, to 5.78bn pesos.
In its report, BBVA said the reduction in public sector mortgage lending was due to fewer borrowers actually taking out loans that had been approved.
BBVA's 15-20% growth projection for mortgage lending means that this loan segment would be growing significantly faster than credit as a whole in the Mexican market.