Credit Unions have the ability to adapt to adverse times and this time will not be the exception. Although it is still early to say that they show a trend of improvement, signs of recovery are already seen with the data from the CNBV that are up to December, said Luis Morales, president of the Mexican Council of Credit Unions.
He mentioned that the total assets of the sector recover by 7%, mainly explained by the loan portfolio that grows by 6.6% in the period and this causes the sector to return to levels above the closing stage of December 2020 , “We have not yet reached that level but we are on the border very close to December, it is very likely that the data at the end of March of the first quarter of 2022, and the assets will be placed at a level higher than the pre-pandemic period.”
At the end of 2021, the sector has 63,000 million pesos in assets with 47,600 million pesos in portfolio and with a notable recovery in the Past Due Portfolio indicator, it is still stressed at 5.1%, the IMOR, is not a usual indicator for the sector, but it is explained by the economic situation and that means that, in turn, when that indicator rises, the coverage index is 59% when we had ranges of 68 and 72 percent.
“It has been a fundamental challenge for information security aspects, for data protection and that is exacerbated and effectively with working at home, a good part of the CUs have already returned but in the last two months, and those that have They have returned partially, there is work on a hybrid model that is part of the teachings of the Covid crisis,” said Luis Morales.
He said that the on-site reviews in the UCs have already restarted, which means that the supervisors are much more active from the CNBV, physical inspection visits.
”We are observing more frequently a phenomenon of identity theft and fraud commission, which is not necessarily money laundering, which forces us to update our technology platforms or methodologies, among others the risk matrix where we have to recalibrate due to the aspects of insecurity that are being experienced in different regions of the country”, he concluded.
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