only consistent momentum in credit growth can lead to strong net benefits for the economy. the recent financial reform the recently approved, multi - layered financial reform contains measures that may strengthen the banks ’ institutional framework, allowing for more robust and sustainable credit expansion, among other benefits. three sets of measures that stand out seek more effective propertyrights protection for creditors, more formal regulation and the promotion of competition among financial intermediaries. on the subject of creditors ’ property rights, the reform makes significant progress towards correcting problems observed in the application of the bankruptcy law approved in 2000. specifically, the new legislation closes loopholes which debtors had been using to prolong the debt resolution process in areas such as intercompany liabilities, director and manager responsibility, while it makes bridge lending in cases of liquidity crunches more feasible. the reform reduces obstacles to expediency in the judicial process to recover collateral, illustrated by the possibility for debtors to choose the court level and select assets to be seized. an important innovation is the founding of specialized commercial - law courts at the federal level. in the field of regulation, the reform provides rules for the authorities to manage the resolution or liquidation of banks in cases of liquidity squeezes and insolvency. the specifics cover lending of last resort with equity shares as collateral, bank contingency plans for adverse scenarios, and ring - fencing actions, for example, in the case of majority shareholder problems. an expedient bank judicial liquidation process and a legal framework for transfer of assets and liabilities are established. the capital requirements to comply with basel iii guidelines are now mandatory under mexican law. the procedures for applying liquidity requirements are also determined. with respect to competition in the sector, a new law facilitates mortgage substitution by debtors, allowing them to choose banks offering more favorable terms. other measures that work in the same direction include greater facility for the mobility of deposits and consumer loans, meaning that customers can transfer their accounts and loans to other banks with less red tape and shorter delays. importantly, bundled sales of financial products and services are prohibited. these measures will potentially foster a more competitive, consumer - friendly and healthy banking system. along with other reforms, they may contribute to higher potential economic growth. however, as is true with the overall current reform agenda, the effectiveness of these measures will depend heavily on the quality of pending legislation needed to put the changes in place, and adequate implementation. the current economic cycle after a full year of

, 1993 - 2009 millions of jobs nafta 7. 4 8. 8 9. 0 8. 8 9. 5 9. 2 8. 9 8. 5 7. 8 7. 8 7. 6 8. 6 10. 3 china enters wto 9. 3 8. 0 8. 5 8. 3 source : department of commerce international trade administration ( 2010 ). international trade research report no. 1 : exports support american jobs ( http : / / trade. gov / publications / pdfs / exportssupport - american - jobs. pdf ) graph 6. percent of employment in manufacturing in the united states 18. 5 17. 5 china enters wto 16. 5 15. 5 14. 5 13. 5 12. 5 11. 5 10. 5 9. 5 source : estimates from federal reserve bank of st. louis ( fred ). graph 7. us : price of cars and trucks relative to general price level1 / us city average, index 1994 = 100 nafta new trucks new cars 1 / price index for new trucks and new cars relative to cpi. not seasonally adjusted. source : us bureau of labor statistics. references acemoglu, daron and pascual restrepo. ( 2017 ). “ robots and jobs : evidence from us labor markets. ” nber working paper no. 23285. arkolakis, costas. arnaud costinot and andres rodriguez - clare. ( 2012 ). “ new trade theory, same old gains? ” american economic review. burstein, ariel and javier cravino. ( 2015 ). “ measured aggregate gains from international trade. ” american economic journal : macroeconomics. chiquiar, daniel. enrique covarrubias and alejandrina salcedo. ( 2017 ). “ labor market consequences of trade openness and competition in foreign markets. ” banco de mexico working papers no. 201701. cocco, federico. ( 2016 ). “ most us manufacturing jobs lost to technology, not trade. ” financial times. https : / / www. ft. com / content / dec677c0 - b7e6 - 11e6 - ba85 - 95d1533d9a62 de long, j. bradford. ( 2017 ). “ nafta and other trade deals have not gutted american manufacturing - period. ” vox. http : / / www. vox. com / the -