ZCZC
BCN-25
MEXICO-FINANCIAL-SYSTEM-BANK
Mexico’s financial system solid but faces risks: central bank
MEXICO CITY, Oct. 26, 2018 (BSS/Xinhua) – Mexico’s financial system is
going through a solid phase though faced with internal and external risks
such as the recent cyberattacks against some institutions, the Central Bank
of Mexico (Banxico) said Thursday.
While presenting the Financial System Report, Banxico Governor Alejandro
Diaz de Leon, said that the country’s credit institutions have high levels of
capital and good quality to face any risks.
“The issue of cybersecurity is one that has been highlighted because of
its global importance. In addition, on an international level many regulatory
changes have been focused on financial risks,” he said.
“Starting with the crisis of 2008-2009 on a global level, many of the
efforts in regulatory matters have been focused on the financial part, and
it’s likely that what we are seeing today, with the issue of cybersecurity,
is an area we should be paying more attention to,” Diaz de Leon added.
The Banxico report was released two days after the country’s financial
authorities declared a red alert for payment system participants, following a
cyberattack on the local unit of the French insurance company AXA.
It is the latest attack since Banxico reported that some corporations were
the targets of cyberattacks as in April and May on the systems used to
connect to the Interbank Electronic Payment System (SPEI).
Diaz de Leon did not offer more information on the AXA attack but said the
duration of the red alert is still unknown.
At the beginning of the year, California-based cybersecurity firm Fortinet
said that Mexico and Brazil, the two largest economies in Latin America,
registered the region’s highest number of cyberattacks against financial
systems.
Banxico said that, the dynamics of inflation and the weakening economy are
among the risks for financial stability in the Mexican economy.
Other factors such as lower oil revenues would also affect fiscal
consolidation, Diaz de Leon noted.
“We must closely watch the risks to the financial system, especially those
of the systematically important institutions,” he said. “It’s foreseeable
that the Mexican economy could encounter an adverse environment both from the
outside and domestically.”
Because of this, Mexico must maintain a solid macroeconomic policy,
considering monetary and fiscal aspects as well as the resilience of the
financial system, he said.
BSS/XINHUA/HR/1205