MEXICO CITY, June 25 (Xinhua) -- The Mexican banking sector is well-placed to face the country's upcoming elections, with loans are expected to maintain rational and sustainable growth, the Swiss investment bank UBS said on Monday.
The Latin American country will hold its general elections on July 1 to choose a new president as well as a large number of governors and officials at different levels.
UBS experts recently met with Mexican bankers, who said they did not anticipate "important changes" for the sector after the elections.
The Mexico banking said the it will not scale back the loans as it seeks to increase competition of the industry, UBS wrote in a report to its clients. "It should be maintained at the current growth between nine and 10 percent, and a similar level of growth is expected in 2019," UBS concluded.
Despite the country's electoral uncertainties, global trade tensions and higher interest rates, banks that are sufficiently capitalized revealed the good quality of their assets, read the UBS report.
Following market expectations, Mexico on Thursday increased the borrowing costs for the second time this year to avoid the risk to inflation.
