The stability council of Mexico says that the financial system in Mexico is robust and stable.

The Mexican Financial Stability Council believes that Latin America's number one economy's financial system is strong and resilient. According to a statement from the central bank on Friday, Mexico's No. 2 economy is resilient and solid, despite global growth being expected to be slightly lower than last year.

The Council said that the Mexican banking industry's capital and liquid levels "far exceeded" regulatory minimums, and that the risks associated with the external sector’s peso denominated assets are considered limited.

It said that "Mexico’s financial system is resilient and solid to meet the challenges of the current economic environment."

The statement said that the peso has depreciated by 8% against the dollar since the last meeting of the council, and the risk-aversion is growing due to increased international volatility.

Pemex, the highly indebted oil company of the state, continues to have credit problems despite not having seen any changes to either its ratings or its guidance from major credit agencies for this third quarter.

In a statement, the council stated that the Mexican financial system is able to absorb shocks. It also noted that the economic activity was better than the first half of the year in the third-quarter.

The finance minister is part of the council, as are the members of the central bank's board and the head the banking commission. (Reporting and editing by Aida Pelaez-Fernandez; Sarah Morland, Anthony Esposito)

(source: Reuters)