Sheinbaum Sets Strategic Vision for Banxico

At the Bank of Mexico’s (Banxico) centennial celebration, President Claudia Sheinbaum outlined a new strategic direction for the institution. The plan focuses on expanding credit access, stimulating the domestic market, and accelerating the financial system's technological transformation, while maintaining price stability as its core mandate.

"The challenge is threefold: maintain stability and low inflation, increase productive financing, and commit to technological innovation," states Sheinbaum.

Banxico celebrates its first century of operations against a backdrop of relative macroeconomic strength. During the commemorative event in Mexico City, speakers highlighted the institution's role as the anchor of the country's economic stability. The central bank has historically navigated international financial crises and periods of high volatility, and controlled inflation at a time when international crises destabilized the global economy.

President Sheinbaum notes that the bank's autonomy and its coordination with the Ministry of Finance and Public Credit have been fundamental to consolidating a robust financial system, orderly public finances, and a stable currency. "Controlling inflation is not just a technical task; it is a profoundly social act because the households with the lowest incomes suffer the most," states Sheinbaum. 

Banxico’s new strategy aims to solve structural challenges that have limited the country's economic growth. The key components of this vision include expanding credit access. Mexico has a low level of credit penetration relative to its Gross Domestic Product (GDP). Data from the Banxico consistently places Mexico below other economies of comparable size in this area. Tthe bank pretends to transform credit into a driver of development. It also seeks to use credit to boost the creation of new businesses and allow working families to invest in their assets and well-being. To achieve this, the government plans to implement policies that encourage commercial banks to expand their loan portfolios to these segments, potentially through guarantee schemes or simplified processes.

Another component is stimulating the domestic market. Credit expansion can be a tool to strengthen domestic demand. Greater access to financing for consumption and productive investment can generate a virtuous cycle that boosts consumption, stimulates investment from national companies, and consequently promotes the creation of formal and better-paying jobs.

The third strategic pillar is the modernization of the financial system through technology. The objective is to ensure that the benefits of digitalization reach all sectors of the population. This action aims to reduce the financial exclusion gap that primarily affects young people, women, and communities in rural or underserved areas. This pillar involves promoting the use of digital platforms for banking operations to reduce costs and access barriers. It also involves continuing the evolution of modern payment systems, such as the Digital Collection (CoDi) platform, to facilitate commercial and personal transactions.