Bank of Mexico says financial system is solid, warns of geopolitical and climate risks

June 10, 2026 - 18:27

MEXICO CITY - Mexico's financial system continues to show strength and resilience, with the capacity to withstand challenging economic conditions, the Bank of Mexico stated on Wednesday. In its latest financial stability report, the central bank emphasized that local banks and markets remain well-capitalized and liquid.

However, the report also issued a clear warning about growing external threats. The bank pointed to rising geopolitical tensions and the increasing frequency of extreme weather events as key risks that could disrupt global markets and affect Mexico's economy. These factors, combined with persistent inflation pressures in some regions and uncertainty over monetary policy in advanced economies, create a complex environment for financial stability.

The central bank noted that while domestic credit markets are functioning normally, it is closely monitoring vulnerabilities in the non-financial corporate sector. It also stressed the importance of maintaining prudent risk management practices, especially as climate-related shocks become more common. The report did not announce any new policy measures but reinforced the view that the system is prepared to handle potential shocks.