Outgoing AMB head sounds bullish note, predicting 15-20% credit growth in 2011

- Friday, April 8, 2011

Outgoing AMB head sounds bullish note, predicting 15-20% credit growth in 2011

In his final address as president of Mexican banking association ABM, Ignacio Deschamps González ended his two-year term on a bullish note by projecting that bank credit will expand by 15-20% during 2011.

"This rate will sustain itself for several years as long as our economy continues to grow and banks remain solid," he said in a speech given during the association's 74th annual conference in Acapulco.

Deschamps' projection is at the high end of what many analysts project for credit growth in 2011.

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Should that rate of bank lending growth be attained, it would put Mexico in the company of other Latin American countries - especially South American ones - that saw rapid credit expansion following the 2009 financial crisis.

Mexican bank lending expanded by about 12% last year.

Deschamps, who is also general manager of largest Mexican bank BBVA Bancomer, will be handing over the presidency shortly to Jaime Ruiz Sacristán, head of local bank Ve por Más.