Mexico extends bank liquidity requirement relaxation by six months

FILE PHOTO: The facade of the Bank of Mexico building is pictured in downtown in Mexico City
FILE PHOTO: The facade of the Bank of Mexico building is pictured in downtown in Mexico City, Mexico February 28, 2019. REUTERS/Daniel Becerril

February 16, 2021

MEXICO CITY (Reuters) – Mexican financial authorities said on Tuesday they would extend by six months a relaxation of liquidity requirements to banks to prevent shocks stemming from the coronavirus pandemic.

The softer liquidity requirements were first established in April of last year and were due to expire on March 1, the central bank, finance ministry and banking regulator said in a joint statement. The exceptions to the liquidity rules will be phased out over an additional six months, the statement said.

(Reporting by Sharay Angulo; writing by Cassandra Garrison; Editing by Frank Jack Daniel)