According to the statement issued by the Mexican Bank regulatory, bank lending is likely to increase by another 15% in the coming year, led by business credit and mortgage as the economic system retrieves from the recession period.

The economic fall that caused widespread layoffs and defaults on credit cards and other types of deft slammed Mexico’s banks in 2009.

The National Bank and Securities Commission head Guillermo Babatz said, “Mexico's banks have improved their balance sheets and are set to boost overall lending next year.”

Further, he said, “A preliminary estimate would be 15 percent. There will be more growth in commercial credit and home lending and less in consumer credit.”

Lending by Mexico’s banking industry, led by Citigroup and Spain's BBVA, was declined by 8% in the month of October from the year-ago period, with consumer credit slumping 21%.

Mexico's economy has begun to expand in recent months but output for full 2009 is still expected to be down about 7% from the year before. Next year, the economy is expected to grow about 3%.