The new reality of the banking system

The banking system is back in business and it has left behind most of the adverse effects of the 2001/02 crisis.

Banks are focusing on their core business and this is started to be reflected in higher volumes of financial intermediation, as lending to the private sector has increased by 14,4 billion pesos, while they have reduced their exposure to public sector to 32% of total assets from 50% in 2002. The banking system is also now profitable, showing an adjusted ROA of 1,9% in 2005 and it has improved its solvency, as it now shows a positive net worth of almost 12 billion pesos, even when we value government assets at market prices and adjust the balance sheet for the amparos that still appear as an asset.