Nearshoring spurs regional credit growth in Mexico
A persuasive case can be made for nearshoring, but so far in Latin America there has been little direct evidence that it is happening. In Mexico, things are about to change.
On October 27, 2022, Edgardo del Rincon, chief executive of Banco del Bajío (BanBajío), a regional bank that operates in the central manufacturing states of Mexico, stated that nearshoring has led directly to a growth in the bank’s credit portfolio of Ps10 billion ($510 million) – equivalent to about 5% of its portfolio.
What is so interesting about this isn’t just that it is unambiguous proof of the phenomenon playing out in the Mexican economy, it is also that these regional banks – Banregio is also seeing credit demand coming from nearshoring – aren’t typically the financiers of the international companies that are investing in new Mexican operations.