Stephanou, ConstantinosMunoz, Emanuel Salinas2012-06-072012-06-072007-06https://hdl.handle.net/10986/7442The objective of this paper is to describe the evolution, composition, and determinants of financing to the nonfinancial private sector in Mexico between 2000 and 2005. Supported by the macroeconomic environment and financial system reforms, total financing to the private sector (particularly consumer credit) increased relative to GDP, while accessibility and affordability generally improved. Equity issuance did not play an important role during the period under consideration. Although the supply of financing shifted toward domestic nonbank providers, commercial banks remain the primary source of funding. Significant progress was made in cleaning up bank loan portfolios and in strengthening financial system soundness and infrastructure. The prospects for continued private sector financing growth remain very positive, but financing is not spread out evenly across all market segments. The authors conclude with some policy implications to further facilitate deeper and broader financing of the private sector.CC BY 3.0 IGOACCOUNTINGAFFILIATESAGRICULTUREAUDITINGBALANCE SHEETSBANK CREDITBANK DEPOSITSBANK LENDINGBANK LOANSBANK RESTRUCTURINGBANKING REGULATIONBANKING SECTORBANKING SYSTEMBANKRUPTCYBOND ISSUANCEBOND MARKETSCAPITAL ADEQUACYCAPITAL ADEQUACY RATIOSCAPITAL MARKETSCAPITALIZATIONCLEARING HOUSESCOMMERCIAL BANKSCOMMERCIAL CREDITCOMPETITIVENESSCONSUMER PROTECTIONCORPORATE GOVERNANCECORPORATE INSOLVENCYCOUNTRY COMPARISONSCREDIT UNIONSDEBTDEBT FINANCINGDEFICITSDEPOSIT INSURANCEDEPOSITSDEVELOPMENT AGENCYDEVELOPMENT BANKSDOMESTIC CREDITECONOMIC GROWTHECONOMIC SECTORSECONOMIC SIZEEQUITY INVESTMENTSFACTORINGFINANCIAL AUTHORITIESFINANCIAL INFRASTRUCTUREFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIATIONFINANCIAL REFORMSFINANCIAL REPORTINGFINANCIAL SECTORFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL TRANSACTIONSFINANCING SOURCESFOREIGN BONDSGDPGDP DEFLATORGDP PER CAPITAGROWTH RATEHOLDING COMPANIESHOUSINGHOUSING FINANCEINFLATIONINTEREST RATESIPOLEGAL FRAMEWORKLIQUIDATIONLITIGATIONLOAN CLASSIFICATIONMACROECONOMIC PERFORMANCEMARKET INCENTIVESMATURITIESMORTGAGE LENDINGMORTGAGE LOANSMORTGAGESMUTUAL FUNDPER CAPITA INCOMEPORTFOLIOPORTFOLIOSPRICE INFLATIONPRIVATE SECTORPROVISIONINGPROVISIONSPUBLICPUBLIC COMPANIESPUBLIC DEBTPUBLIC OFFERINGPUBLIC SECTORREAL GDPREAL SECTORREORGANIZATIONRETAINED EARNINGSRETIREMENTRISK MANAGEMENTRISK MEASUREMENTSAVINGSSECURITIESSECURITIES MARKETSSYSTEMIC RISKTRANSPARENCYTRANSPORTTRUSTSUTILITIESWorld Bank10.1596/1813-9450-4264