MONTERREY, Mexico–Mexican credit unions are of high economic importance to the country's overall operating environment, according to Fitch Ratings.
Credit unions provide financial services mainly to segments underserviced by banks in Mexico, such as specialized groups of agricultural producers, cattle raisers, farmers, small merchants, independent professionals and also micro and SMEs (small and medium-sized enterprises) with specific and relevant economic activities in the country.
As of December 2015 there were 98 Mexican credit unions with 67,000 members, providing loans for approximately US$2.230 billion.
The local regulator, CNBV (Banking and Securities National Commission), recently published financial information for these entities through December 2015. Fitch estimates that most credit unions exhibited balance sheet and income statement growth with loan portfolios growing in the double digit territory (close to 10% YoY). Member deposits and credit facilities from banks and other organizations grew around 6%.
According to Fitch, credit unions operate widely within the region, providing lending activities in 24 out of 32 Mexican states. However, the larger entities are concentrated in just a few states. Fitch said that although growth in Mexico’s CUs is concentrated in a few credit unions (48% of loans in the Top 5), overall growth was overseen at most entities.