Circular 12/2021 — Modifications to Circular 3/2012 (Annex 21)

892 OFFICIAL GAZETTE Wednesday, December 29, 2021

CIRCULAR 12/2021, addressed to Credit Institutions, Multiple-Object Financial Societies regulated that maintain equity links with Credit Institutions and the National Agricultural, Rural, Forestry and Fisheries Development Financial Institution, regarding the Modifications to Circular 3/2012 (Annex 21).

At the margin, a logo that says: Bank of Mexico.- “2021: Year of Independence”.

CIRCULAR 12/2021

TO CREDIT INSTITUTIONS, MULTIPLE-OBJECT FINANCIAL SOCIETIES REGULATED THAT MAINTAIN EQUITY LINKS WITH CREDIT INSTITUTIONS AND NATIONAL AGRICULTURAL, RURAL, FORESTRY AND FISHERIES DEVELOPMENT FINANCIAL INSTITUTION:

SUBJECT: MODIFICATIONS TO CIRCULAR 3/2012 (ANNEX 21)

The Bank of Mexico, with the purpose of continuing to promote the sound development of the financial system, as well as to foster the proper functioning of payment systems and the protection of public interests, taking into consideration the recommendations put forward by the Financial Stability Board (FSB) and the International Organization of Securities Commissions (IOSCO) regarding the use of new reference interest rates, has determined to adapt the regulations in the matter of interest rates, in congruence with the transition to new reference rates that comply with best practices and standards at the global level.

For this reason, based on Articles 28, paragraphs sixth and seventh, of the Political Constitution of the United Mexican States; 24 and 26 of the Bank of Mexico Law; 48 of the Credit Institutions Law; 87-D, paragraph fourth, of the General Law of Credit Auxiliary Organizations and Activities; 22 of the Law for Transparency and Ordering of Financial Services; 1, 4, first paragraph, 8, paragraphs fourth and eighth, 10, first paragraph, 12, first paragraph, in relation to 19 Bis 1, fraction XI, 14, first paragraph, in relation to 25 Bis, fraction VII, and 17, fraction I, of the Internal Regulations of the Bank of Mexico, which grant it the authority to issue provisions through the General Directorate of Central Banking Operations, the General Directorate of Financial Stability, and the Directorate of Central Banking Provisions, respectively; as well as Second, fractions IV, VI and X, of the Agreement on the Assignment of Administrative Units of the Bank of Mexico, it has resolved to modify fraction I and the third paragraph of Article 38, as well as Annex 21, and to add fraction I Bis to Article 38 of the “Provisions applicable to the operations of credit institutions, multiple-object financial societies regulated that maintain equity links with credit institutions and the National Agricultural, Rural, Forestry and Fisheries Development Financial Institution”, contained in Circular 3/2012, to remain in the following terms:

PROVISIONS APPLICABLE TO THE OPERATIONS OF CREDIT INSTITUTIONS, MULTIPLE-OBJECT FINANCIAL SOCIETIES REGULATED THAT MAINTAIN EQUITY LINKS WITH CREDIT INSTITUTIONS AND THE NATIONAL AGRICULTURAL, RURAL, FORESTRY AND FISHERIES DEVELOPMENT FINANCIAL INSTITUTION

Reference Interest Rates

“Article 38.- … I. The TIIE de Fondeo; I Bis. The TIIE for Terms Greater Than One Banking Business Day; II. to V. … ... When any of the reference rates provided for in fractions I, I Bis and II above are used, the term of the TIIE, CETES and BONDES, as applicable, to which the rate of the operations is referenced must be indicated.

Wednesday, December 29, 2021 OFFICIAL GAZETTE 893 …”

“ANNEX 21 Classification of Foreign Currency Demand Deposit Accounts

For the purposes of the regimes for admission of liabilities and investment for Foreign Currency Operations, Foreign Currency Demand Deposit Accounts shall be classified as follows: a) Their amount shall be classified in two parts:

PART 1 Where P1 = PART 1 of the accounts, for the Day being computed. PMAC1 = Sum of the accounts, in monthly average of daily balances, that in the month immediately preceding the Day being computed have accrued an interest rate equal to or less than fifty percent of the RATE. PMACt = Amount of the total accounts, in monthly average of daily balances, recorded in the month immediately preceding the Day being computed. SDCt = Balance, on the Day being computed, of the total accounts.

PART 2 Where P2 = PART 2 of the accounts, for the Day being computed. PMAC2 = Sum of the accounts, in monthly average of daily balances, that in the month immediately preceding the Day being computed have accrued an interest rate greater than fifty percent of the RATE. PMACt = Amount of the total accounts, in monthly average of daily balances, recorded in the month immediately preceding the Day being computed. SDCt = Balance, on the Day being computed, of the total accounts.

b) PART 1 shall be divided by 60 and the resulting quantity shall count for each of the Days from 1 to 60, while PART 2 shall be divided by 30 and the resulting quantity shall count for each of the Days from 1 to 30.

For these effects, the RATE will be the monthly average of the month immediately preceding the Day being computed, of the annual rate offered in the interbank market for Dollars in London, England (LIBOR), for three-month deposits, made known by Reuters at 11:00 hours, time of said city. In case that the aforementioned rate ceases to be made known or that, subject to the determination of the Bank of Mexico, it ceases to be considered as an adequate reference of market conditions, the reference rate that the Bank of Mexico indicates to Multiple Banking Institutions in consideration of that which is recognized by the competent authorities or associations recognized by the financial markets of the jurisdictions in question shall be taken. For the calculation of said monthly average, the corresponding rate of each Day of the cited month immediately preceding the Day being computed shall be considered, and for non-working days, the rate relative to the immediately preceding Banking Business Day shall be applied.”

TRANSITORY

UNIQUE. This Circular shall enter into force the day following its publication in the Official Gazette of the Federation.

Mexico City, December 23, 2021.- BANK OF MEXICO: General Director of Central Banking Operations, Gerardo Israel García López.- Signature.- General Director of Financial Stability, Fabrizio López Gallo Dey.- Signature.- Director of Central Banking Provisions, María Teresa Muñoz Arámburu.- Signature.

894 OFFICIAL GAZETTE Wednesday, December 29, 2021

For any inquiries regarding the content of this Circular, the Bank of Mexico is at your disposal through the Directorate of Authorizations and Sanctions of Central Banking at telephone (55) 5237-2000 extension 3200.