AMLO highlights the strength of Mexican banks amidst an economic crisis in the U.S.


Andrés Manuel López Obrador, president of Mexico, highlighted on Thursday, March 16th, the strength of the banks and the Mexican economy in the face of the bank collapse suffered by US banking institutions last week.

“The economy is fine, now it is not like in the days of neoliberalism when, in effect, they would get the flu in the United States and here we would get pneumonia. Now it is the other way around, the banks can fail there and nothing happens here, or they good things,” said López Obrador in his daily press conference.

In addition, he assured that last year the Mexican banks obtained around 250 billion pesos in profits, a record number.

“So, they can’t say that the economy is bad,” he remarked.

López Obrador will attend the inauguration of the annual Banking Convention, organized by the Association of Banks of Mexico (ABM) in the southern city of Mérida (Yucatán), in which 50 entities participate.

At the meeting, the bankers are expected to address the growing foreign investment in the country, the shadows of inflation, and the possible recession in the United States.

The alarms went off on the 10th when the US Silicon Valley Bank (SVB) registered one of the biggest banking collapses in history, which triggered doubts about the health of the sector and fears of a new financial crisis, taking the New Yorker away. Signature Bank.

The US authorities assured that they will guarantee all the deposits of both entities, beyond the standard limit of 250 thousand dollars per client, and announced an emergency program to offer liquidity to other banks with large amounts invested in bonds.

Far from being concerned about this situation, López Obrador mentioned several of the social and economic advances that, he said, have benefited companies and workers.

Among them, he pointed out the increase in the average wage, the minimum wage, and the reduction to historic lows in the unemployment rate, which stands at 2.9 percent.

Source: El Economista

The Mexico City Post