Circular 15/2023 — Modifications to Circular 14/2007

Wednesday, December 13, 2023 OFFICIAL GAZETTE 1 BANCO DE MEXICO CIRCULAR 15/2023, addressed to credit institutions and multiple-object financial societies regulated, regarding Modifications to Circular 14/2007 (Forward Composite Interbank Equilibrium Rate for 28, 91 and 182 days). At the margin a logo, which says: Bank of Mexico.- “2023, Year of Francisco Villa, the revolutionary of the people”. CIRCULAR 15/2023 TO CREDIT INSTITUTIONS AND MULTIPLE-OBJECT FINANCIAL SOCIETIES REGULATED: SUBJECT: MODIFICATIONS TO CIRCULAR 14/2007 (FORWARD COMPOSITE INTERBANK EQUILIBRIUM RATE FOR 28, 91 AND 182 DAYS) The Bank of Mexico, with the purpose of continuing to promote the sound development of the financial system, and considering the recommendations of the Swiss association that groups financial authorities from various countries, named Financial Stability Board (FSB, in English), as well as of the association of banking supervisory authorities, named Basel Committee on Banking Supervision, and of the International Organization of Securities Commissions (IOSCO, in English) regarding the characteristics that reference interest rates used in financial markets must meet, has decided to begin publishing the Forward Composite Interbank Equilibrium Rate in national currency (TIIE) for tenors of 28, 91 and 182 days, so that this rate can be used by financial institutions as a reference in credits denominated in national currency, in congruence with the transition to new reference rates that meet best practices and standards globally. For the above, 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, 4 and 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, 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 Bank Operations and the Directorate of Central Bank Provisions, respectively, as well as Second, fractions VI and X, of the Agreement on the Assignment of Administrative Units of the Bank of Mexico, has resolved to modify section 2.1, subsection b), as well as add the definition “Forward Composite Interbank Equilibrium Rate” to section 1 and section 2.5 Bis, of the “General Provisions referred to in Article 4 of the Law for Transparency and Ordering of Financial Services in matters of interest rates”, contained in Circular 14/2007, to remain in the following terms: GENERAL PROVISIONS REFERRED TO IN ARTICLE 4 OF THE LAW FOR TRANSPARENCY AND ORDERING OF FINANCIAL SERVICES IN MATTERS OF INTEREST RATES “1. Definitions …

2 OFFICIAL GAZETTE Wednesday, December 13, 2023 Forward Composite Interbank Equilibrium Rate: to the Forward Composite Interbank Equilibrium Rate in national currency for tenors of 28, 91 and 182 days, which is published by the Bank of Mexico in accordance with what is provided in Section V of Chapter IV of Title Three of the Provisions applicable to the operations of credit institutions, the multiple-object financial societies that maintain patrimonial links with credit institutions and the National Development Bank for Agricultural, Rural, Forestry and Fisheries Activities, issued by the Bank of Mexico through Circular 3/2012, published in the Official Gazette of the Federation on March 2, 2012, according to it has been modified through subsequent resolutions. …” “2.1 General Provisions … a) … b) A variable rate, which may be determined under any formula agreed with the Client, provided that it uses as a reference a single rate chosen from among those indicated in sections 2.5, 2.5 Bis, 2.6 and 2.7 of these Provisions, depending on whether they are Credits denominated in national currency, in UDIS or in foreign currency, or c) … …” “2.5 Bis Reference rates in national currency composed in advance In addition to the rates indicated in the immediately preceding section 2.5, in Credits denominated in national currency, the Forward Composite Interbank Equilibrium Rate published by the Bank of Mexico on its electronic page on the worldwide network of Internet with the name of domain www.banxico.org.mx may be used as a reference rate. Financial Institutions must indicate the tenor of the Forward Composite Interbank Equilibrium Rate to which the rate of the Credits is referred.” TRANSITORY SINGLE.- This Circular will enter into force on the next banking day following its publication in the Official Gazette of the Federation. Mexico City, December 5, 2023.- BANK OF MEXICO: General Director of Central Bank Operations, Gerardo Israel García López.- Signature.- Director of Central Bank Provisions, María Teresa Muñoz Arámburu.- Signature. For any consultation regarding the content of this Circular, the Bank of Mexico places itself at your disposal through the Directorate of Central Bank Authorizations and Sanctions at telephone (55) 5237-2000 extension 3200. extension 3200.