Mexican banks are back from the dead.
Banks are creating hundreds of new loans, many of them for small and medium-size businesses that are borrowing in pesos for the first time in years. The incipient revival in credit is an important sign that a controversial plan by Mexican regulators to restructure the banking system, at a cost of billions of dollars to taxpayers, may have paid off. It also provides the most tangible sign to date that economic growth in Mexico is trickling down to the grass-roots level. Mexico Is Still Vulnerable To be sure, the problems remain enormous. Mexico remains vulnerable to global financial-market volatility, which could raise interest rates and choke off lending in a matter of days.