September 01, 2009

Mexican bank lending to individuals and companies dipped 2.2 percent in July in real terms as a steep economic downturn pushed up unemployment, the central bank said on Monday.Credit to consumers fell 19.7 percent compared with July 2008, an annual rate of decline similar to that in June, the central bank said in a statement on Monday. Mortgage loans were up 5.5 percent.

Bank lending to businesses rose 8.8 percent in real terms, in line with a gain seen in June, the central bank said.Mexico's banking industry, dominated by Citigroup Inc (C.N) and Spain's BBVA (BBVA.MC), is considered well-capitalized. The banks have avoided subprime customers and many of the problems plaguing the financial industry in the United States and Europe.