Liquidity risk

Liquidity Risk is monitored through indicators that reflect the exposure to this risk, accompanied by stress tests designed according to the Institution's Liquidity Profile:

Cash Flow Index (CFI): CFI aims at establishing a sufficient level of dollar cash inflows to cover dollar cash outflows.
Adjusted Liquidity Coverage Ratio (ALCR): determines the sufficient Liquid Assets level to cover the Net Cash Outflows for the next 30 days, considering the Institution's refunding capacity.
Liquidity Risk Index (LRI): the objective is to establish the level of assets in dollars that can be converted into cash to cover outflows of resources in dollars during the next five days.
Refunding Risk Index (RRI): the objective is to control the refunding risk over the maturity profile, which affects the financial margin in dollars and pesos.
Prudential Liquidity Ratio: its objective is to establish the optimal level of cash so as not to incur a liquidity cost and to meet the daily needs of the Institution's treasury.

Management and control are carried out by monitoring compliance with the indicators based on authorized thresholds.

In 2020, the Institution implemented various strategies to keep the Liquidity Risk under control and the indicators within the established levels, such as the increase in liquid assets position and substituting short-term for long-term deposits.