Mexico City - Mexican bank lending is likely to expand 15 percent next year, led by business credit and mortgages as the economy recovers from a recession, the country's bank regulator said on Monday. The economic slump that caused widespread layoffs and defaults on credit cards and other types of debt slammed Mexico's banks this year. National Bank and Securities Commission head Guillermo Babatz told reporters that Mexico's banks have improved their balance sheets and are set to boost overall lending next year. "A preliminary estimate would be 15 percent," Babatz said. "There will be more growth in commercial credit and home lending and less in consumer credit." Lending by Mexico's bank industry, led by Citigroup (C.N) and Spain's BBVA (BBVA.MC), was down 8 percent in October from the year-ago period, with consumer credit slumping 21 percent, according to Mexico's central bank. Mexico's economy has begun to expand in recent months but output for full 2009 is still expected to be down about 7 percent from the year before. Next year, the economy is expected to grow about 3 percent. (Editing by Leslie Gevirtz)
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Business News | December 2009 
Noel Randewich - Reuters
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