| Story Views | |
| Now: | |
| Last Hour: | |
| Last 24 Hours: | |
| Total: | |
Mexican Banking Data Reveals Cities that Borrow More than Save have Better Quality of Life
Mexican cities and villages where credit exceeds savings deposits offer a higher quality of life and a more educated citizenry, according to 12 years of financial data released by Mexico’s National Banking and Securities Commission (CNBV). The research was funded by the Consortium on Financial Systems and Poverty at the University of Chicago.
The data provide a detailed look at the spending and saving habits of Mexicans for the past decade. For example, in 2010, 94 percent of every peso deposited in banks and other financial institutions went to finance credit: 41 percent went to consumer and mortgage credit, 37 percent to firms and 16 percent to governments.
The researchers are making the database, called Mexico’s Municipalities Savings and Intermediation, available to other researchers. The data cover the period from 2001 to 2012, and compare borrowing and savings for each of the 2,456 Mexican municipalities, which include urban cities, towns and rural villages.
Among the findings:
- Savings patterns differ across Mexican states. Between 2000 and 2010, the Federal District had the highest amount of bank deposits as a percentage of its GDP (53 percent). Campeche had the lowest (1 percent).
- Regulated non-bank financial institutions play an important role for those in more rural areas where populations are less educated and have a lower per capita income.
- Banks had a median balance of $8,800 pesos ($677 USD) per account while the median deposit in non-banking institutions was $3,600 pesos ($279 USD) per account.
- Banks loan more credit than regulated non-banking institutions, which are more prevalent in cities and villages that have lower population densities, lower schooling and lower overall quality of life.
The data aim to arouse interest among researchers and analysts about the Mexican financial system. These data will allow identifying historical patterns of savings and intermediation for different regions in Mexico. It will also encourage the study of the relationship between the use of financial services with socioeconomic factors.
Published in Latino Daily News
2012-12-03 02:44:28
Source:
