MEXICO CITY, June 23 (Reuters) - Mexican banks lent slightly more in May than in April reflecting slow growth in internal demand as the country emerges from a recession.
Overall lending was up 1.89 percent in May from April, and credit to businesses expanded 1.80 percent, the National Bank and Securities Commission said in a statement on Wednesday.
Consumer lending, including non-performing loans, edged up 0.11 percent in the month, the commission said.
Mexico’s banks slashed lending to consumers in 2008 and 2009 as a slumping economy, widespread layoffs and generous credit card promotions led to a surge in defaults.
Non-performing consumer loans in May crept up to 5.87 percent of total consumer loans, interrupting a downward trend for much of this year that saw bad consumer debts drop to 5.81 percent a month earlier.
Consumer confidence MXCONC=ECI in Mexico remains sluggish even as an export-driven recovery is expected to boost growth this year to by as much as 5 percent.
Last year, Mexico’s economy contracted 6.5 percent in its deepest slump since the 1930s. (Reporting by Sean Mattson, editing by Leslie Gevirtz)