Balance Risk

Banking operations correspond to the credits granted by the Institution and its funding strategy.

The Institution has a policy of maintaining practically all operations, both active (credit) and passive (funding), at a reviewable rate, either naturally or through the contracting of interest rate derivative instruments. In this way, it will seek to minimize the Balance exposure to base rate fluctuations, prioritize the allocation of Capital to Credit operations and optimize the Capital requirement for Market Risk. Non-reviewable rate operations refer to long-term funding lines contracted with Foreign Development Institutions for specific projects.

Repricing Profile

The band structure has not presented significant changes by virtue of the established capital assigned to the market optimization policy.

It is worth mentioning that the credit granted by the Institution is generally medium- and long-term to manage and control the duration of the Assets and Liabilities gap. Since the Sovereignty Guarantee backs it, the Institution can access competitive resources in the national and foreign markets for the short, medium, and long term, which is why it regularly issues debt securities or contracts of term financing lines. The preceding is to seek funding stability to achieve its position in the term credit market.

In the Institution's balance sheet, approximately 60% of the loan portfolio is denominated in dollars. A strict discipline is applied in the management and control of the Foreign Exchange Position. An Exchange Risk Position is generally level and well below the Regulatory Limit established by Banco de México (15% Basic Capital). The above leveling is achieved naturally by contracting funding in foreign currency and contracting exchange rate derivative instruments.