Mexico has made impressive progress in recent years in upgrading its financial regulatory and supervisory framework to bring it further in line with international standards and good practices. The authorities have taken strong actions in response to the recommendations of the 2006 FSAP in all of the areas covered in this report. The ability to monitor and respond to the build up of risks has been strengthened; safety net and crisis management arrangements have improved; the institutional set-up for financial regulation and supervision has been revamped and is being reoriented towards a more system-wide focus; and several steps have been taken to deepen securities markets and further develop private mortgage markets. Partly due to this enhanced regulatory framework and partly due to the strength of the financial system coming into the crisis, Mexico weathered the recent global financial crisis relatively well. The financial system did experience a material worsening in asset quality and some pressures on bank funding and market liquidity, but these pressures were overall manageable with comparatively modest public support.