Deutsche re-enters Mexico amid nearshoring optimism
Deutsche Bank’s Mexico team says the country is vital for Latin American credibility and that nearshoring will drive FDI in the coming decade.
“Mexico will need to bolster its financial system in order to underpin all the investment that needs to be done for more direct nearshoring – to expand the productive capacity,” says Francisco Campos, Deutsche Bank’s chief Mexico economist, who adds that he expects Spanish banks and other international financial institutions active in Mexico to add balance sheet to local businesses.
Campos is speaking from personal experience. In July this year he was hired to head up the German bank’s economics coverage in the country following Deustche’s decision to re-enter Mexico. In 2022, the bank invested €120 million in restarting an onshore brokerage (Deutsche had withdrawn from the country in 2016) and has hired a small team of traders, as well as back-office support, for its new Mexico City office.
Deutsche’s country chief executive, Marliz Mejía, joined the bank from Santander Mexico in 2022.
We’re really preparing for what we believe will be a very good performance in Mexico next year
“Deutsche Bank is a very strong bank in emerging markets, and if you want to do emerging markets you have to do Latin America, and you can’t say that you are active in Latin America unless you are in Mexico,” Mejía tells Euromoney.