TY - BOOK ID - 78437701 TI - Financial Deepening in Mexico AU - Herman, Alexander. AU - Klemm, Alexander. PY - 2017 SN - 1475578105 9781475578102 1475572921 9781475572926 1475578075 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Finance KW - Financial institutions KW - Financial intermediaries KW - Lending institutions KW - Associations, institutions, etc. KW - Banks and Banking KW - Finance: General KW - Money and Monetary Policy KW - Macroeconomics KW - General Financial Markets: Government Policy and Regulation KW - Banks KW - Depository Institutions KW - Micro Finance Institutions KW - Mortgages KW - Economic Development: Financial Markets KW - Saving and Capital Investment KW - Corporate Finance and Governance KW - Monetary Policy, Central Banking, and the Supply of Money and Credit: General KW - General Financial Markets: General (includes Measurement and Data) KW - Business Fluctuations KW - Cycles KW - Monetary economics KW - Banking KW - Credit KW - Bank credit KW - Commercial banks KW - Emerging and frontier financial markets KW - Money KW - Financial markets KW - Credit cycles KW - Financial sector policy and analysis KW - Banks and banking KW - Financial services industry KW - Business cycles KW - Mexico UR - https://www.unicat.be/uniCat?func=search&query=sysid:78437701 AB - International comparisons reveal that—even controlling for a host of explanatory factors—credit depth is exceptionally low in Mexico. Using panel data methods linking credit growth and fundamentals, this paper estimates a long-term gap between actual and expected credit of about 40 percent of GDP. Possible explanations include the history of banking crises, the large informal sector and an inefficient legal system. Using a disequilibrium regression approach, this paper also finds that supply factors are particularly important as determinants of credit in Mexico. Recent financial reforms address many of the supply constraints, but their success will depend on implementation. The main challenge going forward will be to support financial deepening, while limiting risks to financial stability. ER -