General Provisions on Liquidity Requirements for Multiple Banking Institutions

DOF: 23/08/2021

GENERAL PROVISIONS on liquidity requirements for Multiple Banking Institutions

A seal with the National Coat of Arms appears at the margin, which reads: United Mexican States.- TREASURY.- Ministry of

Treasury and Public Credit.- Bank of Mexico.

The Bank of Mexico, based on the provisions of articles 28, paragraphs sixth and seventh of the

Political Constitution of the United Mexican States; 96 Bis 1 of the Credit Institutions Law, as well

as 24, 26, 36, 36 Bis and 47, fraction I, of the Bank of Mexico Law; 1º, 4º, first paragraph; 10, first

paragraph; 14 in relation to 25; 14 Bis, in relation to 17, and 14 Bis 1 in relation to 25 Bis 1, of the

Internal Regulations of the Bank of Mexico and Second, fractions VIII and X, of the Agreement on the Assignment of the

Administrative Units of the Bank of Mexico, and the National Banking and Securities Commission, with

basis on the provisions of articles 96 Bis 1, 96 Bis 2, last paragraph and 98 Bis of the Law of

Credit Institutions; 4, fractions XXXVI and XXXVIII; 16, fraction I and 19 of the National Banking and Securities Commission Law, and

CONSIDERING

That in accordance with article 78 of the General Law of Regulatory Improvement and with the aim of reducing the

cost of compliance with these provisions, the National Banking and Securities Commission by

resolution published in the Official Journal of the Federation on November 15, 2018, modified the

"General Provisions applicable to brokerage houses", to extend the deadline with which

brokerage houses have to observe what is provided in the Financial Information Standards issued by the Mexican Council of Financial Information Standards, A.C.;

That the Credit Institutions Law grants the joint faculty to the National Banking and Securities Commission

and the Bank of Mexico to issue general provisions establishing liquidity requirements

that multiple banking institutions must comply with at all times, in accordance with the guidelines

to that effect established by the Liquidity Banking Regulation Committee in terms of said Law;

That the Liquidity Banking Regulation Committee, in sessions held on October 17, 2014 and June

14, 2018, issued the guidelines to implement the Liquidity Coverage Ratio and the

Net Stable Funding Ratio, and determined that these requirements must be consistent

with the standards issued by the Basel Committee on Banking Supervision in matters of liquidity

requirements to the extent that the Mexican legal framework allows and with the objective of preserving the stability of the

Mexican financial system;

That the aforementioned guidelines establish that the general provisions on liquidity requirements

jointly issued by the Bank of Mexico and the National Banking and Securities Commission

must:

Provide that multiple banking institutions maintain liquid assets freely available and of

high credit quality, as defined in the applicable general provisions, to

meet their obligations and liquidity needs for 30 days.

II.

Establish, for the purposes of the preceding fraction I, a Liquidity Coverage Ratio in accordance with a calculation methodology that reflects the international standard.

This coefficient must be satisfied in national currency considering all currencies.

III.

Provide that multiple banking institutions maintain liabilities whose maturity and stability characteristics are related to the maturity and liquidity characteristics of their assets.

IV.

Establish, for the purposes of the preceding fraction III, a Net Stable Funding Ratio consistent with the international standard calculation methodology. This

coefficient must consider operations in national currency and foreign currency.

Take into account, for the calculation of the Liquidity Coverage Ratio and the Net Stable Funding Ratio, all operations of multiple banking institutions

included in their respective balance sheets, as well as those off-balance sheet operations that by

their characteristics imply a liquidity risk for the institutions.

VI.

Provide that for the calculation of the Liquidity Coverage Ratio and the Net Stable Funding Ratio, multiple banking institutions must consolidate their balance

sheets with those of their subsidiaries that are financial entities, except for those that the Bank of

Mexico and the National Banking and Securities Commission determine in the aforementioned provisions.

Likewise, they must establish measures to prevent multiple banking institutions,

through operations entered into with financial entities that are part of the financial group to

which they belong or with those that have common controlling shareholders or partners, from reducing

their liquidity requirements without an equivalent reduction in their risk.

Considering that multiple banking institutions could face liquidity risks

arising from operations carried out by entities or companies that are part of the same

financial group, consortium, or business group to which said institutions belong, it must

correspond to the board of directors of each entity to authorize financial support to

said entities and companies, and it must be provided that said board must: i) identify

said entities and companies, ii) estimate the potential impact that liquidity risk

might have if materialized and iii) define policies and criteria of action to mitigate

said risk. The foregoing, with the purpose of reflecting these policies in the calculation of the aforementioned

coefficients.

Likewise, provide that multiple banking institutions must comply with the requirements

individually, as well as taking into account what is provided in this fraction.

VII.

Establish that multiple banking institutions disclose: (i) their Liquidity Coverage Ratio and their Net Stable Funding Ratio; (ii) the list of financial

entities and companies identified in accordance with the preceding fraction VI; (iii) the policies and

criteria referred to in said preceding fraction VI; and (iv) the declaration that, with

respect to those financial entities and companies that have not been included in the list

referred to in the preceding sub-item (ii), there is no commitment, explicit or implicit, nor is it expected to grant

financial support from the multiple banking institution. Furthermore, provide that the National

Banking and Securities Commission must make known on its website the Liquidity Coverage Ratios and Net Stable Funding Ratios of all multiple banking

institutions, as well as additional information that the Bank of Mexico and the National Banking and Securities Commission

determine in the general provisions.

VIII.

Define the terms and conditions under which the Liquidity Coverage Ratios and Net Stable Funding Ratios of multiple banking institutions

will be determined for legal purposes, which must contemplate, at a minimum: (i) the

obligation of such institutions to calculate said coefficients and communicate them to the

Bank of Mexico along with the information supporting said calculations, in accordance with the

forms that, to that effect, the Bank of Mexico establishes with the opinion of the National Banking

and Securities Commission; (ii) the verification of said calculations carried out by the Bank of Mexico,

and (iii) the communication by the Bank of Mexico to the National Banking and Securities Commission

of said calculations and all other information that said Central Institute has in its

possession and that is related to such coefficients.

IX.

Consider a transitional period for the compliance with the Liquidity Coverage Ratio

for recently created institutions, taking into account the amount of active operations of the institutions and the time they have been operating.

Establish a scheme that allows classifying multiple banking institutions based on

their Liquidity Coverage Ratio and their Net Stable Funding Ratio, with

the aim of determining possible non-compliance with minimum liquidity requirements,

considering the magnitude, frequency, and duration of such non-compliance.

XI.

Provide for corrective measures that the National Banking and Securities Commission may order to

multiple banking institutions, depending on their classification in terms of the preceding

fraction. Such measures will have the objective that the multiple banking institutions in

question restore their liquidity.

That they will contribute to continuing with the achievement, on the one hand, of the objective entrusted by Law to the National Banking and Securities Commission,

consisting in procuring the stability and proper functioning of the Mexican financial system, as well as maintaining and fostering the healthy and balanced development of said system as a whole, in protection of the interests of the public and, on the other hand, of the purpose that the law confers on the

Bank of Mexico, relative to promoting the healthy development of the financial system, as well as the good

functioning of payment systems, have resolved to issue the following:

GENERAL PROVISIONS ON LIQUIDITY REQUIREMENTS

FOR

MULTIPLE BANKING INSTITUTIONS

INDEX

TITLE I

GENERAL PROVISIONS

CHAPTER I

DEFINITIONS

CHAPTER II

ACCOUNTING TREATMENT AND CALCULATION OF CURRENCY EQUIVALENCES

CHAPTER III

REPORTING AND PUBLICATION OF COEFFICIENTS

TITLE II

LIQUIDITY COVERAGE RATIO

CHAPTER I

CALCULATION AND DETERMINATION OF ELIGIBLE LIQUID ASSETS AND TOTAL CASH INFLOW AND OUTFLOW

CHAPTER II

SCENARIOS AND CORRECTIVE MEASURES

TITLE III

NET STABLE FUNDING RATIO

CHAPTER I

CALCULATION AND DETERMINATION OF MATURITIES OF OPERATIONS

CHAPTER II

SCENARIOS AND CORRECTIVE MEASURES

TITLE IV

FINAL PROVISIONS

CHAPTER I

COEFFICIENT RESTORATION PLAN

CHAPTER II

NON-COMPLIANCE AND EXCEPTIONS

TRANSITORY

List of Annexes

ANNEX 1

Classification of Eligible Liquid Assets

ANNEX 2

Outflow factors for liabilities or other operations

ANNEX 3

Cash inflow factors for operations

ANNEX 4

Methodology to determine outflow and inflow flows for operations with

derivative financial instruments

ANNEX 5

Liquidity Coverage Ratio disclosure format

ANNEX 6

Determination of Available Net Stable Funding Amount

ANNEX 7

Required Net Stable Funding Amount for unrestricted assets and other

operations

ANNEX 8

Factors of the Required Net Stable Funding Amount for Restricted Assets or

granted as collateral

ANNEX 9

Methodology to determine assets and liabilities for Operations with Derivative

Financial Instruments for purposes of the Net Stable Funding Ratio

ANNEX 10

Net Stable Funding Ratio disclosure format

ANNEX 11

Certificate signed by the board of directors secretariat regarding the

designation of financial entities and companies of the financial group, consortium, or

business group that will receive financial support from the Institution

ANNEX 12

Guidelines that the methodology must meet to estimate the amount of money of

deposits for operational purposes to determine outflow flows

ANNEX 13

Guidelines that the methodology must meet to estimate inflow flows

proceeding from deposit accounts that Institutions maintain in other financial entities

ANNEX 14

Requirements to prove the independence of the third-party independent experts referred to

in articles 11, fraction V and 12, fraction IV of these provisions, who review

the methodology to determine the Amount of Deposits for Operational Purposes in the

determination of cash inflow and outflow flows

TITLE I

GENERAL PROVISIONS

CHAPTER I

DEFINITIONS

Article 1.- For the purposes of these provisions, the following shall be understood, in singular or plural:

Eligible Liquid Assets: the assets indicated in Annex 1 of these

provisions.

II.

Computable Liquid Assets:

the total amount corresponding to the value of Eligible Liquid

Assets that, in accordance with these provisions, are included in the calculation of the Liquidity

Coverage Ratio, with the limits and discount factors established in these

provisions.

III.

Coefficients:

the Liquidity Coverage Ratio and the Net Stable Funding

Ratio, jointly or separately.

IV.

Liquidity Coverage Ratio:

the result of applying the calculation formula established

in article 9 of these provisions.

Net Stable Funding Ratio:

the result of applying the calculation formula

established in article 16 of these provisions.

VI.

Commission:

the National Banking and Securities Commission.

VII.

Accounting Criteria:

the accounting criteria for credit institutions referred to

in Chapter One of Title Three of the Provisions, contained in Annex 33 of

said order.

VIII.

Operational Purpose Deposit Accounts:

the demand deposit accounts and time deposit accounts with a term less than 30 days opened by legal entities in the

Corresponding Institution or constituted in any other financial entity by the Institution itself,

and that meet the following characteristics:

They have been opened as a necessary condition for the provision of compensation, custody, or cash administration services that the Institution offers to said

account holders;

Their opening, according to the respective contracts, has been for the purpose of

using them solely for the provision of compensation, custody, or cash administration services, as applicable; and

The purpose of the deposits corresponding to said accounts is not to obtain profits

from the payment of interest they generate, so their interest rate must be lower

than that of savings or investment products offered by the Institution itself.

IX.

Business Days: days on which Institutions are not obligated to close their doors or to

suspend operations, in terms of the general provisions that, to that effect,

are issued by the Commission.

Provisions:

the General Provisions applicable to credit institutions

issued by the Commission and published in the Official Journal of the Federation on December 2, 2005,

as well as its various modifications.

XI.

Entities Subject to Consolidation:

those financial entities that:

are subject to consolidation in accordance with the Accounting Criteria, except those

that are subject to prudential standards issued by a Mexican financial authority

different from the Commission, or

are part of the same financial group, consortium, or business group to which the

Institution belongs, that are incorporated in Mexico, and that the board of directors determines

must be consolidated, as part of the Policies and Criteria of action to mitigate

the risks of the potential negative impact of liquidity that said entities could

generate to the Institution.

Regarding those financial entities that are subsidiaries of the Institution and fall

within the exception provided in sub-item a) of this fraction, the board of

directors of the respective Institution may determine, based on the Policies and Criteria,

that said entities are subject to consolidation.

XII.

Total Net Cash Outflow:

the amount resulting from subtracting the total cash inflow of

an Institution from the total cash outflow of that same Institution,

determined in accordance with these provisions.

XIII.

Institutions:

multiple banking institutions.

XIV.

IPAB:

the Institute for the Protection of Bank Savings.

XV.

Law:

the Credit Institutions Law.

XVI.

Credit Lines:

contracts through which a sum of money is made available, both to

natural and legal persons, for a certain period, for a pre-established

limit.

XVII.

Liquidity Lines:

Credit Lines, granted by Institutions to back

commercial paper issuances.

XVIII.

Amount of Operational Purpose Deposits:

the amount of resources deposited in

Operational Purpose Deposit Accounts whose holders must maintain to develop compensation, custody, or cash administration operations during the

following thirty days. The excess over said amount will not be considered as part of the

deposits for operational purposes.

XIX.

Available Net Stable Funding Amount:

the amount resulting from summing the liabilities

and capital indicated in Annex 6 of these provisions after applying the factors

corresponding to them depending on their classification in terms of said own annex.

XX.

Required Net Stable Funding Amount:

the amount resulting from summing: (i) the non-restricted

assets and other operations indicated in Annex 7 of these provisions, and (ii) the

restricted assets or granted as collateral indicated in Annex 8 of these

provisions. In both cases, the sum will be made after applying the factors corresponding to them depending on their classification in terms of the aforementioned annexes.

XXI.

Interdependent Operations:

passive operations of Institutions entered into by

these with development banking institutions, public trusts for economic development referred to in article 3 of the Law, as well as development agencies referred to in the General Provisions applicable to development agencies and development entities issued by the Commission and active operations of Institutions

entered into by these with any counterparty, provided that in accordance with the terms and conditions established in the contracts documenting them, it is provided that the resources

from the active operation can only be used to meet the corresponding passive operation and, in turn, the resources resulting from the passive operation can only be used to carry out the referred active operation. To be considered by

Institutions as interdependent active and passive operations, these operations

must meet the following requirements:

Clearly identify active and passive operations individually;

The maturities and principal amounts of the passive operations are equal to or

greater than those corresponding to the active operations, and

The counterparties of the active and passive operations must be distinct.

XXII.

Contingency Funding Plan: that considered as such by the Provisions.

XXIII.

Policies and Criteria:

those guidelines approved by the board of directors of the

Institution, through which:

entities and companies that are part of the same group, consortium, or business

group to which the Institution belongs whose operations constitute a liquidity risk for the Institution are identified,

the potential negative impact that the liquidity risk referred to in the

preceding sub-item might have if materialized is estimated, and

the manner in which operations of said entities or companies must be

taken into account as part of the Institution's liquidity risk, for the calculation of liquidity requirements. The foregoing, for purposes of the consolidation of financial entities and their inclusion in Entities Subject to Consolidation, or for the determination

of an amount intended to face the liquidity risk represented by said

entities or companies.

XXIV.

Capital Rules:

those established in the Provisions.

XXV.

Banking correspondent services:

payment services provided by an Institution

(correspondent bank) that maintains deposits owned by a credit institution (issuer bank) with the purpose of settling foreign currency operations of the latter.

XXVI.

UDIS: accounting units, whose value in national currency is published by the Bank of Mexico in the

Official Journal of the Federation, in accordance with articles Third of the " Decree by which

obligations that may be denominated in investment units and reforms

and adds various provisions of the Federal Tax Code and the Income Tax Law " published in the Official Journal of the Federation on April 1, 1995 and 20 Ter of the

Federal Tax Code.

CHAPTER II

ACCOUNTING TREATMENT AND CALCULATION OF CURRENCY EQUIVALENCES

Article 2.- Institutions, for the purposes of calculating the Coefficients provided in these

provisions, must adhere to the following:

Include all their operations for individual calculation, and include for consolidated calculation the

operations of both the individual calculation and the operations carried out by Entities Subject

to Consolidation.

II.

Include operations registered in their balance sheet, as well as those registered in the off-balance

sheet accounts referred to in Annexes 2 and 3 of these provisions, for the Liquidity

Coverage Ratio, and Annexes 7 and 8, of these provisions, for the Net Stable Funding Ratio.

III.

Consider and integrate into the calculation of the Liquidity Coverage Ratio and the Net Stable Funding Ratio the Policies and Criteria, to include, if applicable, the corresponding financial

entities within Entities Subject to Consolidation; as well as entities or companies that are part of the same financial group, consortium, or business group

for the determination of an amount intended to face liquidity risks of the

Institution.

For the purposes of the foregoing, Institutions must adhere to what is established in Annexes 2,

3, 6, 7 and 8 of these provisions.

Institutions may not reform the Policies and Criteria in the year following their

approval, unless there are relevant changes that modify the scope of consolidation or

the amount to face liquidity risks referred to in sub-item c), fraction

XXIII of Article 1 of these provisions, in which cases, they must inform the Commission and the Bank of Mexico, including the reasons for which they wish to modify the aforementioned Policies and Criteria at least 5 Business Days before the board of directors of the Institution resolves the approval of its modification.

The notification referred to in the preceding paragraph must be accompanied by the draft modifications to the Policies and Criteria that the board of directors intends to approve.

IV.

Unless otherwise specified in these provisions, consider the value of their operations according to the Accounting Criteria. Regarding the Liquidity Coverage Ratio, Institutions must value the securities held to maturity at their market value.

Include the flows to be received or delivered corresponding to operations with financial derivative instruments, calculated according to what is stated in the methodology described in Annex 4 of these provisions, for the calculation of the Liquidity Coverage Ratio.

VI.

Apply the methodology described in Annex 9 of these provisions for the determination of assets and liabilities from operations with financial derivative instruments, for the calculation of the Net Stable Funding Ratio.

The Commission and the Bank of Mexico will resolve jointly regarding input or output factors applicable in case operations not covered by these provisions occur.

Article 3.- For the purposes of calculating the Liquidity Coverage Ratio, in addition to what is provided in the previous article, Institutions must adhere to the following:

Offset for each foreign exchange operation agreed upon a value date, the active and passive part of the same operation. In the event that for such operations a master agreement has been entered into under which all operations concluded with the same counterparty may be extinguished by offset in a single settlement, the operations in which a winning position is maintained must be offset with those in which a losing position is maintained. Once the result of such offsets is obtained, Institutions must include the resulting amount as an inflow if such amount corresponds to a winning position, or as an outflow if it corresponds to a losing position.

II.

Offset for each securities purchase and sale operation agreed upon a value date, the active and passive part of the same operation and include the resulting amount as an inflow if the active part is greater, or as an outflow if the passive part is greater. For the purposes of the offset referred to in this fraction, Institutions must first apply the discount factor to Eligible Liquid Assets according to Article 10 fraction I, of these provisions, with the exception of the securities referred to in Annex 1, fraction I, subsection E, to which a discount factor of 100 percent will be applied, as well as to securities other than Eligible Liquid Assets. Without prejudice to the foregoing, regarding those securities to which a discount factor of 100 percent is applied, the capital or interest of such securities that the Institution has the right to receive in the next thirty days may be included as an inflow.

Additionally, for the purposes of calculating the Liquidity Coverage Ratio, in no case may Institutions simultaneously consider an asset as part of Computable Liquid Assets and, at the same time, as an operation that generates a cash inflow as established in these provisions.

Article 4.- For the purposes of calculating the Coefficients that Institutions must carry out in accordance with these provisions, the respective amounts that they must apply must be denominated in national currency, in accordance with the following:

The calculation of the national currency equivalent of amounts denominated in United States dollars, corresponding to Eligible Liquid Assets and the operations to be used to determine the Total Net Cash Outflow, as well as the Available Stable Funding Amount and the operations to be used to determine the Required Stable Funding Amount, will be carried out taking into account the applicable exchange rate as provided in the Accounting Criteria.

II.

The calculation of the national currency equivalent of amounts denominated in UDIs or any other unit of measurement, corresponding to Eligible Liquid Assets, the Available Stable Funding Amount, and the operations necessary to determine the Total Net Cash Outflow or the Required Stable Funding Amount, will be carried out taking into account the valuation treatment established in the Accounting Criteria of the Provisions.

CHAPTER III

REPORTING AND PUBLICATION OF THE COEFFICIENTS

Article 5.- Institutions must report to the Bank of Mexico the result of the calculation of the Coefficients, both individually and on a consolidated basis, which they carry out in accordance with these provisions, on the following dates and deadlines:

The Liquidity Coverage Ratio corresponding to each day must be reported during the ten Business Days following that day.

II.

The Net Stable Funding Ratio corresponding to the last Business Day of each month must be reported during the first sixteen Business Days of the following month.

III.

Without prejudice to what is provided in fractions I and II above, the Commission or the Bank of Mexico may require a particular Institution to report its Liquidity Coverage Ratio, its Net Stable Funding Ratio, or both, on specific dates, provided that, in the judgment of the authority making such request, the Institution may be assuming risks notably higher than those shown by the figures of the last reported calculation, when there are indications that its liquidity situation may have deteriorated, or when such authorities consider it necessary due to the information they receive in the exercise of their functions.

IV.

In the event that, in accordance with the Law and as a result of the exercise of its inspection and surveillance functions, the Commission requires a particular Institution to make adjustments to the accounting records that result in modifications to the Liquidity Coverage Ratio, the Net Stable Funding Ratio, or both, which such Institution had reported, the latter must report the new calculation of said Coefficients on the date specified by the Commission for this purpose.

In the event that any Institution has knowledge or foresees that the Liquidity Coverage Ratio or the Net Stable Funding Ratio corresponding to it, would place it in a scenario different from scenario I provided in these provisions regarding the Coefficient in question, such Institution must report to the Bank of Mexico and the Commission the calculation of the corresponding Coefficient, on the Business Day following that in which any of these situations occur. In this case, the referred Institution must accompany its report with an explanation of the causes that gave or could give rise to such situation, as well as the measures it will apply to restore its Liquidity Coverage Ratio or Net Stable Funding Ratio, as the case may be, to a level that allows it to be classified in the respective scenario I. This report, including the explanation, causes, and measures mentioned above, must also be delivered to the board of directors of the Institution, no later than the Business Day following that in which the report to the Bank of Mexico and the Commission is made. What is provided in this fraction will be applicable regardless of the measures that the Institution in question must carry out in accordance with the scenario in which it is located in terms of these provisions.

For the purposes of the reports referred to in this article, Institutions must present to the Bank of Mexico the result of the calculation of the Coefficients, as well as the necessary information for its verification, in the form determined by the Bank of Mexico itself, through the Directorate of Information of the Financial System, and through computer systems or by any other means, including electronic ones specified by the Bank of Mexico itself, for which it may prepare forms and operational aids.

Institutions must have all documentary evidence that attests to the information considered for the calculation of the Coefficients, when this is requested by the Bank of Mexico or the Commission.

Article 6.- The Bank of Mexico will verify the calculations of the Coefficients reported by Institutions in terms of Article 5 of these provisions, within five Business Days following the receipt of the corresponding information, and must communicate to the Commission the result of said verification through the electronic means that such authorities determine jointly.

Without prejudice to the foregoing, the Commission may request the Bank of Mexico, at any time, to verify the calculation of the Liquidity Coverage Ratio or the Net Stable Funding Ratio of an Institution, based on the information that the Commission itself has determined in the exercise of its inspection and surveillance powers.

Article 7.- The calculation of the Coefficients reported by Institutions, and verified by the Bank of Mexico in accordance with what is stated in these provisions, will be the valid calculation for all legal effects conducive thereto.

Article 8.- Institutions must disseminate to the general public quarterly, through their Internet page, information relating to both the Liquidity Coverage Ratio and the Net Stable Funding Ratio, in both cases, the information related to the quarter being reported, in accordance with the formats included in Annexes 5 and 10, respectively.

Institutions must also disseminate, in terms of this article, the Policies and Criteria, as well as a list with the denomination of each of the financial entities that, in compliance with the aforementioned Policies and Criteria, the board of directors has determined to include as part of the Entities Subject to Consolidation, as well as a list of those entities or companies that, not being part of the Entities Subject to Consolidation, are susceptible to receiving financial support.

Additionally, Institutions must publish a declaration that, with respect to those financial entities and companies that have not been included in the aforementioned lists, there is no explicit or implicit commitment to grant financial support, nor is it expected to grant financial support by the Institution. For such purposes, the referred Institutions must include in said publication the text of the format contained in Annex 11 of these provisions.

The information referred to in this article must be disseminated in accordance with Articles 180 and 181 of the Provisions as a note to the financial statements, and correspond to the quarters ending in March, June, September, and December, remaining on that electronic page for at least five subsequent quarters to the date of its publication for the case of information published quarterly, and for three years following its date regarding information published annually.

Without prejudice to the foregoing, the Commission will publish on its website within the month immediately following the date on which Institutions must carry out the dissemination referred to in the preceding paragraph, the simple average of the calculations of the Coefficients reported by each Institution the previous quarter, adhering to the following formats:

Average Quarter X of year 20XX

Average daily individual LCR of the quarter

Average daily consolidated LCR of the quarter

Average Quarter X of year 20XX

Average individual NSFR of the quarter

Average consolidated NSFR of the quarter

TITLE II

LIQUIDITY COVERAGE RATIO

CHAPTER I

CALCULATION AND DETERMINATION OF COMPUTABLE LIQUID ASSETS AND OF TOTAL CASH OUTFLOW AND INFLOW

Article 9.- Institutions must calculate at the close of operations each day their Liquidity Coverage Ratio in the terms provided by these provisions, as well as report to the Bank of Mexico, in accordance with Article 5, fraction I of these provisions, the calculation of said Coefficient.

Regarding non-business days, for the purposes of the calculation referred to in this paragraph, the Liquidity Coverage Ratio corresponding to the immediately preceding Business Day will be considered.

The Liquidity Coverage Ratio will be the result of applying the following formula and must be expressed as a percentage rounded to the nearest hundredth of a percentage point.

Liquidity Coverage Ratio =

Computable Liquid Assets

Total Net Cash Outflow

Article 10.- Institutions, to determine Computable Liquid Assets, must observe the following:

They will classify the Eligible Liquid Assets subject to these provisions into the corresponding categories according to the table of this fraction, valued at their corresponding market values.

Classification of assets according to Annex 1

Discount Factor

Level I Group

Level IIA Group

15%

Level IIB Group

corresponding to securities from

securitizations of

mortgage credits for

housing

25%

Level IIB Group

different from securities

from

securitizations of

mortgage credits for

housing

50%

Where:

The column "A" corresponds to the amount of Eligible Liquid Assets indicated in Annex 1, available to the Institution on the date of calculation of the Liquidity Coverage Ratio, including those received in repurchase operations, securities lending, or as collateral in operations with financial derivative instruments, provided that the Institution itself can dispose of them without any restriction. Eligible Liquid Assets must be easily convertible into cash with little or no loss of value and be under the control of the area in charge of administering the liquidity of the Institution.

Regarding securities referred to in Annex 1, fraction I, subsection E, they may be considered as Eligible Liquid Assets, according to the currency in which they are denominated, up to the amount of the Total Net Cash Outflow of the Entities Subject to Consolidation, which are established in the corresponding country, in that currency.

Likewise, in the event that the characteristics of an Eligible Liquid Asset are modified in such a way that such asset no longer qualifies as an Eligible Liquid Asset or passes to a lower category within the classification of Eligible Liquid Assets, it may continue to count in its original classification during the thirty days following the modification of such characteristics.

ii.

The column "B" corresponds to the amount of Eligible Liquid Assets that the Institution has available on the calculation date, plus those on which it has a contractual right to receive in the next thirty days, minus those on which there is a contractual obligation to deliver in the next thirty days, derived from the repurchase and securities lending operations contracts entered into for this purpose.

For this, they must consider that all repurchase and securities lending operations with a maturity date in the next thirty days, involving Eligible Liquid Assets both in the active and passive part of the operation, are settled.

iii.

The column "C" corresponds to the amount resulting from subtracting from the amount of column "A" the amount resulting from multiplying the amount of column "A" by the percentage corresponding to the column "Discount Factor".

iv.

The column "D" corresponds to the amount resulting from subtracting from the amount of column "B" the amount resulting from multiplying the amount of column "B" by the percentage corresponding to the column "Discount Factor".

II.

The Computable Liquid Assets for the calculation of the Liquidity Coverage Ratio will be those resulting from applying the following formula:

Computable Liquid Assets = C1 + C2 + C3 + C4 Adjustment A Adjustment B

Where:

Adjustment A = Max (D3 + D4 - 15/85*(D1 + D2), D3 + D4 - 15/60*D1, 0)

Adjustment B = Max ((D2 + D3 + D4 - Adjustment A) * 2/3*D1, 0)

Institutions, when determining the amount of Computable Liquid Assets on a consolidated basis, may not include Computable Liquid Assets in possession of an Entity Subject to Consolidation established in a foreign country for an amount greater than the Total Net Cash Outflow of said Entity Subject to Consolidation.

Article 11.- Institutions, to determine the total cash outflow, must observe the following:

The total cash outflow will be the result of summing all passive operations with a maturity equal to or less than thirty days multiplied by their corresponding outflow factor, in accordance with what is established in Annex 2 of these provisions. Such operations must include those that, due to the contracts the Institution has entered into, could generate a cash outflow in the thirty days following the date of calculation of the Liquidity Coverage Ratio.

II.

To determine the term of the operations referred to in fraction I of this article, Institutions must take as the maturity date the nearest date on which such operations can be contractually demanded, for which they must consider whether the respective contract allows the counterparty to advance the demandability of such operations.

III.

Regarding the Institution's own issuances whose remaining term is greater than thirty days, which had been acquired and reported by a brokerage house with which there are equity links, a remaining term equal to that of the operation in which they were reported by the brokerage house will be assigned.

IV.

Regarding corporate deposits in Operational Purpose Deposit Accounts, the Institution may classify a part of them as the Operational Purpose Deposits Amount, and assign the corresponding outflow factor according to the aforementioned Annex 2. The excess over the referred Amount of Operational Purpose Deposit Accounts must be classified as appropriate according to the cited annex.

Deposit accounts received by Institutions for the provision of banking correspondent services cannot be classified as Operational Purpose Deposit Accounts.

To determine the Operational Purpose Deposits Amount, Institutions must have a methodology documented in their policies and comprehensive risk management procedures; which must take into account the stability of balances in Operational Purpose Deposit Accounts, as well as the usage patterns of the resources that integrate them. The methodology must also include an evaluation of how clients are managing the resources of said Operational Purpose Deposit Accounts and evaluate the possibility that the Operational Purpose Deposits Amount could decrease considerably in stress episodes. In the event of not having such methodology, Institutions cannot classify the deposits referred to in fraction IV of this article, neither totally nor partially, as part of the Operational Purpose Deposits Amount.

The effectiveness of the cited methodology must have an independent technical compliance evaluation biennially, either internal or by an independent expert third party that meets the requirements indicated in Annex 14 of these provisions, who must validate that such methodology complies with the guidelines described in Annex 12 of these provisions and adequately reflects the stability of the deposits recognized in the calculation of the Liquidity Coverage Ratio as Operational Purpose Deposits Amount.

Without prejudice to the foregoing, when a modification is made to the methodology referred to in the preceding paragraph within the first year of the biennial technical compliance evaluation period, a new technical evaluation must be carried out during the next calendar year in which such modification was made. In the event that the referred modification to the methodology is carried out during the second year of the referred biennial period, it must be considered within the technical compliance evaluation that must be delivered to the Commission at the end of the biennial period.

The report of the results of the technical evaluation must be sent by the Institution to the Commission within 20 business days following the date of its issuance. In the event that the review of the methodology has been carried out internally, the Institution in question must present, together with the results report, the evidence of the designation by the Council of the person acting as the internal evaluator, as well as a declaration signed by the referred person acting as the internal evaluator, stating that during their evaluation and on the date of issuance of the cited report, this and, if applicable, the personnel who carried out the evaluation, met the requirements listed below:

Accredit experience of at least 5 years in risk management areas and 2 years in internal control or audit processes, both matters focused on banking operations.

Have a hierarchical level not lower than the three levels below the General Director.

the methodology referred to in the first paragraph of this subsection, as well as those responsible for its use, and shall not receive any remuneration associated with the specific performance of either of these last two areas. Likewise, they must have access to all information related to their evaluation function.

When, in the Commission's judgment, the aforementioned methodology does not consider the guidelines described in Annex 12 or does not reflect the amount that is effectively stable in accordance with the historical behavior of the account, it may order modifications to said methodology, more frequent reviews thereof by independent third parties or by the internal evaluator, or order the designation of persons acting as internal evaluators or the hiring of an independent external third party different from those designated by the Institution to carry out such reviews, or that the amount included as Amount of Operational Purpose Deposits for purposes of calculating the Liquidity Coverage Ratio be reduced, in accordance with these provisions, establishing deadlines for such.

VI.

In the event that, in accordance with what is provided for in Annex 2 of these provisions, a single operation corresponds to more than one exit factor, the Institution must use the highest exit factor.

Article 12.- Institutions, to determine the total cash inflow, must observe the following:

They will consider all outstanding operations in accordance with the Accounting Criteria that do not present overdue principal or interest payments, which, derived from the contracts they have entered into for this purpose, will generate a cash inflow in the thirty days following the date of calculation of the Liquidity Coverage Ratio, multiplied by their corresponding entry factor, in accordance with what is established in Annex 3 of these provisions.

II.

To determine the term of the operations referred to in subsection I of this article, Institutions must take as the maturity date the last date on which they could contractually demand payment.

III.

They will recognize as part of the Amount of Operational Purpose Deposits those deposits in Operational Purpose Deposit Accounts that they maintain in other financial entities, as well as those deposits that, despite being in accounts that do not meet all the requirements to be considered as Operational Purpose Deposit Accounts, the Institutions consider necessary to carry out their operations. To these deposits, the methodology referred to in subsection IV of this article will be applicable to determine the amount that must be included as Amount of Operational Purpose Deposits.

IV.

To determine the inflow associated with the Amount of Operational Purpose Deposits, Institutions must use a methodology documented in their comprehensive risk management policies and procedures, in which the pertinent adjustments are considered to evaluate the amount that Institutions must maintain in the Operational Purpose Deposit Accounts or in the accounts referred to in subsection III above during the following thirty days. The methodology must take into account, among other things, the stability of the balances in the Operational Purpose Deposit Accounts and the accounts referred to in subsection III above, as well as the usage patterns of the resources that make them up, including an evaluation of the way in which Institutions are managing the resources of said accounts and the possibility of withdrawing said resources without compromising their operability under normal conditions. In the event of not having such methodology, Institutions must classify all of their deposits in Operational Purpose Deposit Accounts as part of the Amount of Operational Purpose Deposits.

The effectiveness of the aforementioned methodology must have an independent technical compliance evaluation every two years, either internal or by an independent expert third party who meets the requirements indicated in Annex 14 of these provisions, who must validate that such methodology complies with the guidelines described in Annex 13 of these provisions and adequately reflects the excess of the operational amount of deposits in Operational Purpose Deposit Accounts that is recognized in the calculation of the liquidity coverage coefficient as an inflow.

Without prejudice to the foregoing, when a modification is made to the methodology referred to in the previous paragraph within the first year of the two-year technical compliance evaluation period, a new technical evaluation must be carried out during the next calendar year in which such modification was made. In the event that the aforementioned modification to the methodology is carried out during the second year of the aforementioned two-year period, it must be considered within the technical compliance evaluation that must be submitted to the Commission at the end of the two-year period.

The report of the results of the technical evaluation must be sent by the Institution to the Commission within 20 business days following the date of its issuance. In the event that the methodology review has been carried out internally, the Institution in question must present, together with the results report, the evidence of the designation by the Board of the person acting as internal evaluator, as well as a declaration signed by the said person acting as internal evaluator, stating that during their evaluation and as of the date of issuance of the cited report, they and, if applicable, the personnel who carried out the evaluation, met the requirements listed below:

Accredit at least 5 years of experience in risk management areas and 2 years in internal control or audit processes, both matters focused on banking operations.

Have a hierarchical level not lower than the three levels below that of the General Director.

The person designated as responsible, the internal area to which they belong, as well as the personnel under their charge who participate in the evaluation of the methodologies must have organizational and resource independence with respect to the areas in charge of the development of the methodology referred to in the first paragraph of this subsection, as well as those in charge of its use, and shall not receive any remuneration associated with the specific performance of either of these last two areas. Likewise, they must have access to all information related to their evaluation function.

When, in the Commission's judgment, the aforementioned methodology does not consider the guidelines described in Annex 13 or does not reflect the amount that effectively exceeds the stable amount in accordance with the historical behavior of the account, it may order modifications to said methodology, more frequent reviews thereof by independent third parties or by the internal evaluator, or order the designation of persons acting as internal evaluators or the hiring of an independent external third party different from those designated by the Institution to carry out such reviews, or that the amount included as Amount of Operational Purpose Deposits for purposes of calculating the Liquidity Coverage Ratio be increased, in accordance with these provisions, establishing deadlines for such.

The total cash inflow will be the amount resulting from the lesser of: i) the sum of all cash inflows calculated in accordance with subsection I above, and ii) 75 percent of the total cash outflow calculated in accordance with Article 11 of these provisions.

CHAPTER II

SCENARIOS AND CORRECTIVE MEASURES

Article 13.- Institutions that have been in operation for more than sixty months, as well as those institutions that although they have been in operation for less than sixty months, but that according to the figures published by the Commission at the end of each month and considering the value of the UDI published by the Bank of Mexico on the corresponding date, have maintained an individual or consolidated credit portfolio equal to or greater than 30 billion UDIS, which based on the Liquidity Coverage Ratio reports in terms of Article 5, subsection I, of these provisions, must be located in one of the liquidity scenarios indicated in this article, taking into account the one that results from the lesser between the individually calculated one and that calculated in consolidated terms.

Scenario I when the Liquidity Coverage Ratio corresponding to each day of the immediately preceding calendar month is at least 100 percent.

II.

In scenarios II, III and IV when the Liquidity Coverage Ratio corresponding to any of the days of the immediately preceding calendar month has been less than 100 percent, according to the following table:

Minimum LCR level observed on any day of the calendar month | Accumulated deviations in the month of LCR below 100 --- | --- Less than or equal to 25 | Greater than 25 and less than or equal to 150 | Greater than 150 Scenario II | Scenario III | Scenario II Scenario III | Scenario III | Scenario IV Scenario III | Scenario IV | Scenario IV

Where:

is the lowest Liquidity Coverage Ratio level observed at the close of any of the days of the immediately preceding calendar month.
Accumulated LCR deviations below 100 in the month is the amount resulting from applying the following formula:

Where denotes the calculation of the Liquidity Coverage Ratio at the close of day t of the immediately preceding calendar month, and T denotes the last day of said month.

III.

In scenario III when, according to what is established in subsection II of this article, they correspond to be located in scenario II and, additionally, they have updated scenario II or higher three or more times during the last six months.

IV.

In scenario V when, according to subsection II of this article, they correspond to be located in scenarios III or IV and, additionally, they have updated during the last six months: scenario III three or more times, any combination of scenarios III, IV or V three or more times in aggregate, or scenarios IV or V two or more times.

In the event that, based on the Liquidity Coverage Ratio report in terms of subsections III, IV and V, of Article 5, Institutions anticipate that at the end of the month they will be classified in scenario II or higher according to what is established in subsections II, III and IV of this article, they must be immediately classified in the scenario that corresponds to them according to the aforementioned subsections unless the scenario corresponding to the end of the previous month is higher.

Without prejudice to what is provided in this article, the Commission, at any time, based on the Liquidity Coverage Ratio reported by the Institution, which has been verified and communicated to the Commission by the Bank of Mexico in terms of Article 6 of these provisions, may order that Institutions be located in the scenario that corresponds to them.

Article 14.- Institutions that have been in operation for sixty months or less and that, according to the figures published by the Commission at the end of each month and considering the value of the UDI published by the Bank of Mexico on the corresponding date, have maintained an individual or consolidated credit portfolio less than 30 billion UDIS, must observe the following:

From the first day until the last day of the twelfth month following the date on which they began operations, the liquidity scenarios indicated in this article will not be applicable to them, without prejudice to compliance with other obligations that result applicable in terms of these provisions.

II.

From the first day of the thirteenth month until the last day of the twenty-fourth month following the date on which they began operations, they will be located in:

Scenario I, when the Liquidity Coverage Ratio corresponding to each day of the immediately preceding calendar month is at least 60 percent, and scenarios II, III and IV according to the following table:

Minimum LCR level observed on any day of the calendar month | Accumulated deviations in the month of LCR below 60 --- | --- Less than or equal to 25 | Greater than 25 and less than or equal to 150 | Greater than 150 Scenario II | Scenario III | Scenario IV

Where:

is the lowest Liquidity Coverage Ratio level observed at the close of any of the days of the immediately preceding calendar month.
Accumulated LCR deviations below 60 in the month is the amount resulting from applying the following formula:

Where denotes the calculation of the Liquidity Coverage Ratio at the close of day t of the immediately preceding calendar month, and T denotes the last day of said month.

In scenario III when, according to what is established in the previous subsection of this article, they correspond to be located in scenario II and, additionally, they have updated scenario II or higher three or more times during the last six months.

In scenario V, when, according to subsections 1 and 2 of this article, they correspond to be located in scenarios III or IV according to the table above, and, additionally, they have updated, during the last six months: scenario III three or more times, any combination of scenarios III, IV or V three or more times in aggregate, or scenarios IV or V two or more times, in terms of the cited table.

Institutions, based on the Liquidity Coverage Ratio report in terms of subsections II, III and IV of Article 5, will be located in scenario II when the reported calculation is less than 60 and greater than or equal to 50, and in scenario IV when said calculation is less than 50.

III.

From the first day of the twenty-fifth month until the last day of the thirty-sixth month following the date on which they began operations, they will be located in:

Scenario I, when the Liquidity Coverage Ratio corresponding to each day of the immediately preceding calendar month is at least 70 percent, and scenarios II, III and IV according to the following table:

Minimum LCR level observed on any day of the calendar month | Accumulated deviations in the month of LCR below 70 --- | --- Less than or equal to 25 | Greater than 25 and less than or equal to 150 | Greater than 150 Scenario II | Scenario III | Scenario III Scenario IV | Scenario IV |

Where:

is the lowest Liquidity Coverage Ratio level observed at the close of any of the days of the immediately preceding calendar month.
Accumulated LCR deviations below 70 in the month is the amount resulting from applying the following formula:

Where denotes the calculation of the Liquidity Coverage Ratio at the close of day t of the immediately preceding calendar month, and T denotes the last day of said month.

Institutions, based on the Liquidity Coverage Ratio report in terms of subsections II, III and IV of Article 5, will be located in scenario II when the reported calculation is greater than or equal to 60 and less than 70, in scenario III when the reported calculation is less than 60 and greater than or equal to 50, and in scenario IV when said calculation is less than 50.

IV.

From the first day of the thirty-seventh month until the last day of the forty-eighth month following the date on which they began operations, they will be located in:

Scenario I, when the Liquidity Coverage Ratio corresponding to each day of the immediately preceding calendar month is at least 80 percent, and scenarios II, III and IV according to the following table:

Minimum LCR level observed on any day of the calendar month | Accumulated deviations in the month of LCR below 80 --- | --- Less than or equal to 25 | Greater than 25 and less than or equal to 150 | Greater than 150 Scenario II | Scenario III | Scenario II Scenario III | Scenario IV | Scenario III Scenario IV | Scenario IV |

Where:

is the lowest Liquidity Coverage Ratio level observed at the close of any of the days of the immediately preceding calendar month.
Accumulated LCR deviations below 80 in the month is the amount resulting from applying the following formula:

Where denotes the calculation of the Liquidity Coverage Ratio at the close of day t of the immediately preceding calendar month, and T denotes the last day of said month.

Institutions, based on the Liquidity Coverage Ratio report in terms of subsections II, III and IV, of Article 5, will be located in scenario II when the reported calculation is greater than or equal to 65 and less than 80, in scenario III when the reported calculation is less than 65 and greater than or equal to 50, and in scenario IV when said calculation is less than 50.

From the first day of the forty-ninth month until the last day of the sixtieth month following the date on which they began operations they will be located in:

Scenario I, when the Liquidity Coverage Ratio corresponding to each day of the immediately preceding calendar month is at least 90 percent, and scenarios II, III and IV according to the following table:

Minimum LCR level observed on any day of the calendar month | Accumulated deviations in the month of LCR below 90 --- | --- Less than or equal to 25 | Greater than 25 and less than or equal to 150 | Greater than 150 Scenario II | Scenario III | Scenario II Scenario III | Scenario IV | Scenario III Scenario IV | Scenario IV |

Where:

is the lowest Liquidity Coverage Ratio level observed at the close of any of the days of the immediately preceding calendar month.
Accumulated LCR deviations below 90 in the month is the amount resulting from applying the following formula:

Where denotes the calculation of the Liquidity Coverage Ratio at the close of day t of the immediately preceding calendar month, and T denotes the last day of said month.

In scenario V, when, according to subsections 1 and 2 of this article, they correspond to be located in scenarios III or IV according to the table above, and, additionally, they have updated, during the last six months, scenario III three or more times, any combination of scenarios III, IV or V three or more times in aggregate, or scenarios IV or V two or more times, in terms of the cited table.

Institutions, based on the Liquidity Coverage Ratio report in terms of subsections II and III, of Article 5, will be located in scenario II when the reported calculation is greater than or equal to 75 and less than 90, in scenario III when the reported calculation is less than 75 and greater than or equal to 60, and in scenario IV when said calculation is less than 60.

Article 15.- The Commission, with the opinion of the Bank of Mexico, considering the scenario in which Institutions are located or expect to be located, in terms of Articles 13 and 14 above, may order Institutions to apply the following measures:

In scenario III:

Present to their board of directors, as well as to the Commission and the Bank of Mexico, a detailed report of their liquidity situation.

Refrain from carrying out operations whose execution generates that their Liquidity Coverage Ratio deteriorates, until such time as they are located in scenario I.

Present to the Commission and the Bank of Mexico a report on the use of the Contingency Financing Plan.

II.

In scenario IV, in addition to the measures applicable to Institutions located in scenario III:

Suspend the payment of dividends, as well as any mechanism or act that implies a transfer of patrimonial benefits, until such time as they are located in scenario I.

Limit or suspend, partially or totally, those operations that the Commission, prior to the opinion of the Bank of Mexico, considers necessary for the Institution to be located in scenario I, among the following operations:

Investment in securities and debt titles other than those classified in Level I Group according to Annex 1 of these provisions;

ii.

Loans to related counterparties or with relevant links;

iii.

Loans to financial entities other than Institutions;

iv.

Loans to Institutions;

term of the aforementioned loans. The foregoing shall not apply, with respect to the term restriction, when the term of the aforementioned passive operations is greater than one hundred eighty days.

Submit to the Commission for approval, prior to the favorable opinion of the Bank of Mexico, a liquidity restoration plan within a term not exceeding five Business Days counted from the day the Institution has been located in the aforementioned scenario. Said plan must be prepared in terms of article 22 of these provisions.

III.

In scenario V, in addition to the measures applicable to Institutions located in scenario IV, the suspension of dividend payments, as well as any mechanism or act that implies a transfer of patrimonial benefits, shall apply until full compliance with the Liquidity Restoration Plan referred to in subsection c) of the preceding fraction is achieved and the Institution is located in scenario I for at least 3 consecutive months.

In the event that Institutions present at the same time a Liquidity Coverage Ratio and a Net Stable Funding Ratio that locate them in scenarios requiring the application of some of the measures contained in article 15 and in this article, the measures established by the Institutions must be consistent with each other.

The term to respond to the opinion requests referred to in this article shall not exceed five Business Days, counted from when the Bank of Mexico receives the opinion request from the Commission, or from the date the Commission has responded to the information requirements that the Central Bank may have made within the aforementioned term. In the event that the Bank of Mexico (i) has not made any information request to the Commission, or (ii) has not issued the corresponding response within the established term, the opinion of the Bank of Mexico shall be understood to be positive.

TITLE III

NET STABLE FUNDING RATIO

CHAPTER I

CALCULATION AND DETERMINATION OF TERMS OF OPERATIONS

Article 16.- Institutions shall calculate the Net Stable Funding Ratio in the terms provided by these provisions, as well as report to the Bank of Mexico the calculation of said Ratio corresponding to the last Business Day of each month, in accordance with article 5 of these provisions.

The Net Stable Funding Ratio shall be the result of applying the following formula and must be expressed as a percentage rounded to the nearest hundredth of a percentage point.

Net Stable Funding Ratio

Amount of Available Stable Funding

Amount of Required Stable Funding

Article 17.- Institutions, for the purposes of calculating the Net Stable Funding Ratio, shall take into account the following:

The credit portfolio shall be considered net of preventive reserves, and

II.

Value date operations are considered as if they have already been settled, that is, assets to be received by value date operations will have the treatment as if they were already in the Institution's possession and assets to be delivered as if they had already been delivered.

Article 18. - The term of each of the operations that Institutions must use to carry out the calculations referred to in this Title III shall consist of the remaining term of the validity of the operation in question, calculated as that which must elapse from the date of calculation of the Net Stable Funding Ratio corresponding in terms of these provisions until the maturity date of said operation. Regarding the monthly reports that Institutions present in accordance with what is stated in article 5, fraction II, of these provisions, the date to calculate the term referred to in this paragraph shall be that of the last Business Day of the month corresponding to that of the calculation of the Net Stable Funding Ratio that is applicable.

For the purposes of calculating the term of the operations referred to in the preceding paragraph, Institutions shall observe the following:

For the determination of the remaining term of the assets of the Institutions, it shall be assumed that the respective counterparties of the Institution in question will exercise the option that has been agreed upon regarding the operations corresponding to prolong their maturity term.

For the determination of the remaining term of the liabilities of the Institutions, it shall be assumed that the respective creditors will exercise the option of early amortization on the first possible date that has been agreed upon regarding the operations corresponding.

II.

Regarding credits for which partial capital amortizations have been agreed, the partial amortizations of the principal must be considered in the term in which said amortizations must be made. In this case, for the purposes of compensating for the reserves constituted by said credits, said reserves must be applied starting from the longer term to the shorter term of each partial capital amortization.

III.

Regarding current account credits whose disposal is through credit cards issued under the contracts that document said credits, for the determination of the term for the payment of the amount of the credit exercised, it shall be assumed that the credit holder will only pay the minimum amount required in each of the terms.

IV.

Regarding the issuances of the Institution itself whose remaining term is greater than six months, which have been acquired and reported by a brokerage house with which there are patrimonial links, the remaining term of the operation in which they were reported by the brokerage house shall be assigned.

The Commission and the Bank of Mexico will resolve jointly regarding factors applicable in case operations not included in these provisions are presented.

CHAPTER II

SCENARIOS AND CORRECTIVE MEASURES

Article 19.- Institutions, based on the respective reports of the Net Stable Funding Ratio that they present to the Bank of Mexico in terms of article 5, fraction II, of these provisions, will be located in one of the liquidity scenarios indicated in this article, taking into account the lower one between the one calculated individually and that calculated in consolidated terms:

In scenario I, that Institution whose Net Stable Funding Ratio corresponding to the most recent calendar month reported is at least 100 percent.

II.

In scenarios II, III and IV that Institution whose Net Stable Funding Ratio corresponding to the most recent calendar month reported is less than 100 percent, according to the following table:

Net Stable Funding Ratio Level

(NSFR)

Number of monthly NSFR reports below

100%, including the most recent report,

during the last 12 months:

1 to 4 reports

5 to 11 reports

12 reports

Less than 100 and greater than or equal to

90, that is:

90 < NSFR < 100

Scenario II

Scenario III

Scenario IV

Less than 90 and greater than or equal to 70,

that is:

70 < NSFR < 90

Scenario III

Scenario IV

Less than 70, that is:

NSFR < 70

Scenario IV

Without prejudice to what is provided in this article, the Commission, at any time, based on the Net Stable Funding Ratio reported and verified by the Bank of Mexico in terms of article 6 of these provisions, may order that Institutions be located in the scenario that corresponds to them.

Article 20.- When in a twelve-month period Institutions are located three or more times, consecutively or non-consecutively, in a scenario other than scenario I, they must present to their board of directors, as well as to the Commission and the Bank of Mexico, within a term not exceeding 1 Business Day after the date in which such circumstance is updated, a detailed report of their liquidity situation which must be accompanied by an explanation of the causes that caused the measures that had been adopted at the time for having been located in a scenario other than scenario I to not have been effective in preventing the variability of their Net Stable Funding Ratio, as well as the risk management measures they will implement to reduce said variability, indicating those responsible for implementing and following up on such measures.

Article 21.- The Commission, with the opinion of the Bank of Mexico, considering the scenario in which Institutions are located or expect to be located, in terms of the previous article 19, may order Institutions to apply the following measures:

Regarding Institutions located in scenario II:

Present to their board of directors, as well as to the Commission and the Bank of Mexico, a detailed report of their liquidity situation, as well as the causes that led to the decrease of their Net Stable Funding Ratio below 100%.

Refrain from carrying out operations whose realization generates that their Net Stable Funding Ratio deteriorates, until they are located in scenario I.

Submit to the Commission, for approval prior to the favorable opinion of the Bank of Mexico, a plan to restore the Net Stable Funding Ratio within a term not exceeding five Business Days counted from the day the Institution has been located in the aforementioned scenario. Said plan must be prepared in terms of article 22 of these provisions.

II.

Regarding Institutions located in scenario III, in addition to the measures indicated in the preceding fraction I, suspend the payment of dividends, as well as any mechanism or act that implies a transfer of patrimonial benefits, until they are located in scenario I.

III.

Regarding Institutions located in scenario IV, in addition to the measures indicated in the preceding fraction II, limit or suspend, partially or totally, those operations that the Commission, prior to the opinion of the Bank of Mexico, considers necessary for the Institution in question to be located in scenario I, among the following operations:

Investment in securities and debt instruments other than those classified in Level I Group according to Annex 1 of these provisions;

ii.

Loans to related counterparties or with relevant links;

iii.

Loans to financial entities other than Institutions;

iv.

Loans to Institutions, or

Loans or loan renewals, whose amount is not financed in its entirety through passive operations carried out after it has been determined that the Institution is located in scenario IV, whose term is equal to or greater than the term of the aforementioned loans. The foregoing shall not apply, with respect to the term restriction, when the term of the aforementioned passive operations is greater than five hundred forty days.

TITLE IV

FINAL PROVISIONS

CHAPTER I

RESTORATION PLAN OF RATIOS

Article 22 . - The restoration plan of the Ratios referred to in articles 15, fraction II, subsection c), and 21, fraction I, subsection c), as applicable, of these provisions, shall have as its objective that the Institution implements modifications to its liquidity management so that it is capable of consistently maintaining a Liquidity Coverage Ratio, a Net Stable Funding Ratio, or both, that locate it in the corresponding scenario I, and must be approved by the board of directors of the Institution in question.

In the event that the Commission orders modifications to the restoration plan in question, it must be presented again, for ratification, to the board of directors of the Institution in question, accrediting it thus before the Commission for approval in terms of the articles referred to in the previous paragraph.

The restoration plan must comprise, at least, the following elements:

In the event that the plan refers to the Liquidity Coverage Ratio, identify the sources of resources to increase its Eligible Liquid Assets, or reduce the Total Net Cash Outflow.

II.

In the event that the plan refers to the Net Stable Funding Ratio, identify the sources of resources to increase the Amount of Available Stable Funding, or reduce the Amount of Required Stable Funding.

III.

Indicate the term in which the Institution intends to be located in the corresponding scenario I in accordance with these provisions.

IV.

A calendar with the terms in which the Institution would reach each of the objectives, specifying the dates or stages in which it intends to carry out each of the actions necessary to restore its liquidity situation, as well as the responsible areas to carry out the liquidity restoration actions.

A detailed list of the information that the Institution must send to the Commission, and the periodicity with which it will do so, so that said Commission is in a position to follow up on the compliance with the restoration plan.

VI.

Identify the areas responsible for following up on the plan and informing the responsible areas within the Institution and to the Commission about deviations in said plan.

VII.

Identify the reasons why the Ratio in question was affected, as well as perform an analysis of the quantitative evaluation of the impact of the actions referred to in fraction IV of this article, on both Ratios in the short and medium term, as well as on the regulatory limits established in the Law and the provisions emanating from it, and identify the factors that could affect the implementation or effectiveness of the aforementioned actions.

In the event that the Institution does not comply with the presented restoration plan and, therefore, does not meet the necessary liquidity requirements, the Commission, prior to the opinion of the Bank of Mexico, may require as a cautionary measure the suspension of operations referred to in articles 96 Bis 1, third paragraph, and 128 of the Law.

The foregoing shall be applicable regardless of the sanctions that may be applicable.

CHAPTER II

BREACHES AND EXCEPTIONS

Article 23.- A breach of liquidity requirements shall be understood to occur when Institutions are located in scenarios III, IV or V in terms of Title II of these provisions, in the case of the Liquidity Coverage Ratio and when Institutions are located in scenarios III or IV in terms of Title III of these provisions, regarding the Net Stable Funding Ratio.

Article 24.- The Bank of Mexico and the Commission may establish general exceptions to these provisions for a determined time and totally or partially, in the terms of the determination that, as applicable, the Banking Liquidity Regulation Committee referred to in article 96 Bis 1 of the Law adopts.

Consultations regarding the application of these provisions shall be resolved by the Commission or the Bank of Mexico. The authority receiving the consultation must obtain the prior favorable opinion of the other, in order to resolve what is appropriate.

TRANSITORY PROVISIONS

FIRST.- These provisions shall enter into force on March 1, 2022, except for what is provided in the following transitory articles.

SECOND.- On the date of entry into force of these provisions, the General Provisions Regarding Liquidity Requirements for Multiple Banking Institutions issued jointly by the Bank of Mexico and the National Banking and Securities Commission, published in the Official Journal of the Federation on December 31, 2014 and modified through Resolutions published in said Journal on December 31, 2015 and December 28, 2016, shall be repealed.

THIRD.- Fraction VIII of article 1 of these provisions shall enter into force on July 1, 2024.

From the date of entry into force of these provisions referred to in the First Transitory Provision, and until the date indicated in the preceding paragraph, the exit factors referred to in Annex 2 of these provisions shall be applied, for the purposes of these provisions, for the determination of the outflow flow regarding deposit money accounts that meet the characteristics indicated in fraction VIII of article 1 of these provisions, notwithstanding that, as an exception to what is provided in subsection b) of said fraction, the respective contracts do not state that the use of said accounts is solely for the provision of compensation, custody or cash administration services referred to in said fraction. The foregoing, provided that the contracts referred to in the exception contained in this paragraph were entered into prior to the date indicated in the First Transitory Provision for the entry into force of these provisions.

FOURTH.- Institutions that, prior to the date of entry into force of these provisions referred to in the First Transitory Provision, have received authorization to operate as such without having started operations, as well as those Institutions that on the aforementioned date of entry into force have less than twelve months of having started operations, Article 8 of these provisions shall be applicable to them from the thirteenth month after the start of operations.

Mexico City, August 6, 2021. - BANK OF MEXICO: General Director of Financial Stability, Fabrizio López Gallo Dey. - Initial. - General Director of Financial System Affairs, José Luis Negrín Muñoz. - Initial. - General Legal Director, Luis Urrutia Corral. - Initial. - NATIONAL BANKING AND SECURITIES COMMISSION: President, Juan Pablo Graf Noriega. - Initial.

ANNEX 1

Classification of Eligible Liquid Assets

Eligible Liquid Assets for the purposes of these provisions shall be those included in this annex, and shall be classified as indicated below.

For the purposes of this annex, in addition to the definitions contained in article 1 of these provisions, the following shall be understood:

Rating: the credit risk rating issued by any of the securities rating agencies included in Annex 1-B of the Provisions.

Risk Grade: the risk grades indicated in the correspondence tables of ratings and risk grades, long-term and short-term, both for the global scale and for the Mexico scale, included in Annex 1-B of the Provisions.

Clean Price: the price that does not include accrued interest since the last coupon.

Price Provider: the legal entity that enjoys authorization from the Commission to perform such character, in terms of the Securities Market Law.

Institutions may use prices provided by entities constituted in other countries that carry out similar or equivalent operations to those indicated in the previous paragraph, when it comes to financial instruments issued abroad for which the price providers referred to in the Securities Market Law cannot provide information for the purposes of these provisions.

Without prejudice to the foregoing, Institutions may not use prices provided by the foreign entities indicated in the previous paragraph when the Commission so determines, considering the similarity of the operations regarding which the price is provided, between said entities and those persons who in accordance with the Securities Market Law are authorized to act as price providers.

When Institutions make use of Ratings to carry out the classification referred to in this annex, they must adhere to the criteria established in article 2 Bis 25 of the Provisions.

I. Level I Group

Cash, excluding those amounts that are used for operational purposes, such as payroll payment, rent, services and others.

Deposits at the Bank of Mexico, including monetary regulation deposits not granted as collateral, as well as deposits in central banks of foreign countries with immediate availability.

Debt securities issued by the Bank of Mexico, the IPAB or the Federal Government or guaranteed by the same, with the exception of special Cetes instruments, including debt securities issued by development banking institutions, which have a credit risk weight of zero percent according to the Capital Rules, as well as securities issued by structured vehicles when said securities are issued by the Government of Mexico City.

Debt securities issued by central governments of foreign countries, and/or their central banks, and/or their public entities, which have a credit risk weight of zero percent according to the Capital Rules.

Debt securities issued by central governments of foreign countries in which the Institution has a Financial Subsidiary, and/or their central banks, which have a credit risk weight other than zero.

Debt securities issued by multilateral development or promotion organizations of an international character, which have a credit risk weight of zero percent according to the Capital Rules.

II. Level II Group

It will be composed of the assets of Level IIA Group and Level IIB Group as indicated below.

Level IIA Group

The securities listed below may be classified as liquid assets of the Level IIA Group, provided that, from January 3, 2005 to the present date, they have not presented an accumulated decline in their market price greater than 10% during a thirty-day period.

A.
Debt securities issued by federal entities, municipalities and/or their decentralized agencies, state productive enterprises, or entities of the para-state public administration, including development banking institutions, and public development funds and trusts in accordance with the Organic Law of the Federal Public Administration, which have a credit risk weighter of twenty percent in accordance with the Capital Rules.

B.
Debt securities issued by central governments of foreign countries, and/or their central banks, and/or their public entities, which have a credit risk weighter of twenty percent in accordance with the Capital Rules.

C.
Debt securities issued by multilateral development or promotion organizations of an international nature with a credit risk weighter of twenty percent in accordance with the Capital Rules.

D.
Debt securities issued by non-financial legal entities other than those mentioned above, which are not subsidiaries of financial entities and which have a Rating, corresponding to a:

a.
Risk Grade 1, on a global short-term or long-term scale, or Risk Grade 1, on a local short-term scale; or

b.
Risk Grade equal to or better than Risk Grade 3 on a local long-term scale.

Level IIB Group

The securities listed below may be classified as liquid assets of the Level IIB Group, provided that, from January 3, 2005 to the present date, during a thirty-day period, they have not presented an accumulated decline in their market price greater than 20% for those securities in items A, B, C, and E and greater than 40% for those classified in item D.

A.
Debt securities issued by central governments of foreign countries, and/or their central banks, which have at least two minimum Ratings of BBB+ and BBB- on a global scale, or their equivalent, granted by rating institutions recognized by the Commission.

B.
Securities resulting from the securitization of residential mortgage credits in national or foreign currency, which comply with the following:

a.
The securities have not been issued by:

i.
The Institution itself,

ii.
A trust in which the Institution acts as trustee, or

iii.
A person related to the Institution.

b.
The assignor or originator of the underlying assets is not a person related to the Institution pursuant to article 73 of the Law.

c.
They have at least two minimum Ratings of AA on a local scale for those denominated in national currency, or on a global scale for those denominated in foreign currency.

d.
They include in the issuance deed and the corresponding securities, as well as in the information prospectus and any other instrument documenting the issuance, the obligation of the issuer of the corresponding securities to retain, from their issuance until their maturity, a subordinate position equivalent to at least the amount resulting from the greater of: i) 2.5 percent of the total amount of securitization positions, and ii) the amount of estimated losses by the issuer for the following twelve months.

e.
That the residential mortgage credits had a maximum loan-to-value ratio of 80 percent, on average, at the time of their origination.

C.
Debt securities issued by non-financial legal entities other than those indicated in the Level IIA Group, which are not subsidiaries of financial persons and which have:

a.
Two minimum Ratings of A-2 or their equivalent, on a global short-term scale for those denominated in foreign currency, or local short-term scale for those denominated in national currency;

b.
Two minimum Ratings of BBB- or their equivalent, on a global long-term scale, or

c.
At least two minimum Ratings of A- or their equivalent, on a local long-term scale, granted by rating institutions recognized by the Commission.

D.
Investments in shares of non-financial legal entities that:

a.
Are part of the main index of the Mexican Stock Exchange;

b.
Are settled through a central securities counterparty, and

c.
Have high or medium marketability according to the classification of the Mexican Stock Exchange.

E.
The Debt Securities listed in items A, B, C, and D of fraction II, numeral 1 of this annex that, from January 3, 2005 to the present date, have presented an accumulated decline in their market price greater than 10% during a thirty-day period.

III.
Calculation of the accumulated decline in the market price of assets during a thirty-day period, to determine their eligibility for the Level II Group

For the purposes of calculating the accumulated decline in market price during a thirty-day period, referred to in this annex, the following guidelines must be considered:

1.
It will be calculated based on information provided by a Price Provider.

2.
The series of Clean Prices of the instrument subject to analysis must be considered.

3.
The start date will be considered January 3, 2005. The price on this date is denominated

4.
The last date considered is the date on which the calculation is performed. The price on this date is denominated

5.
It is calculated as the percentage variations of the prices from one to twenty Business Days for each reference date

6.
In the case of amortizable instruments whose variation in their nominal value is different from zero, the calculation of will be made as follows:

Where is the nominal value on the reference date K .
The following table shows the set of variations that must be generated:

7.
The accumulated decline in the market price during a thirty-day period will be the minimum of the entries in the Change Matrix calculated in accordance with numeral 5.

8.
Regarding variations in the price of shares, those variations that by themselves do not modify the value of the index of which those shares are part may be excluded.

ANNEX 2

Exit factors of liabilities or other operations

This annex refers to the exit factor that must be assigned to each of the liabilities or other operations that could generate an outflow.

For the purposes of this annex, in addition to the definitions contained in article 1 of these provisions, it will be understood by:

Transactional Accounts: to the money deposit accounts that the respective depositors maintain open in the Institutions for the receipt of payment of salaries and other labor benefits for payroll, or of clients who have contracted other products or services with the Institution.

Outflows derived from financial support to entities and companies that are part of the same financial group, consortium, or business group: to the maximum amount that, in accordance with the Policies and Criteria, the board of directors of the Institution has authorized granting as financial support to financial entities and companies that are part of the same financial group, consortium, or business group in the event that the liquidity risk arising from the operations carried out by said financial entities or companies materializes.

Cash management services: to those that facilitate to the account holders the management of their cash flows, as well as their assets and liabilities and allow them to carry out the necessary financial transactions to maintain their normal operations. These services are limited to the transfer of payments, the collection and aggregation of resources, payroll administration, and the control and monitoring of the use of resources.

Clearing services: to those arrangements whereby account holders can transfer resources (or securities) indirectly through direct participants in payment systems. Clearing services are limited to the transmission, reconciliation, and confirmation of payment orders, daytime overdrafts, and end-of-day financing, maintenance of balances once clearing operations have been performed, and the determination of positions during and at the end of the day.

Custody services: to the clearing of securities operations, the transfer of payments, the processing of guarantees, and the provision of custody services related to cash management services. Services for the receipt of dividends and other income, as well as payments and redemptions of clients are also included.

Custody services may include the collection of dividends and interest, as well as other services related to asset management, the provision of services to corporate trusts, services to treasuries, administration of third-party accounts, transfer of resources and shares, and agency services, including payment and clearing services (with the exception of correspondent services) and the deposit receipt service.

Rating: to the credit risk rating issued by any of the rating institutions included in Annex 1-B of the Provisions.

For the purposes of the treatment of liabilities in favor of trusts, these must be classified and assigned an exit factor as if the Institution's counterparty for the liabilities in question were directly the respective settlor. In the event that the settlor cannot be identified, the liabilities in favor of said trusts must be classified and assigned an exit factor as if the Institution's counterparty for the liabilities in question were a financial entity.

Likewise, regarding liabilities constituted in a jurisdiction other than Mexican, they will be considered guaranteed by a deposit insurance for the purposes of the classification of this annex, when the deposit insurance of the corresponding jurisdiction meets the following characteristics:

i.
The coverage is clearly defined and offers total coverage to deposits whose amount does not exceed a predetermined limit, or up to an amount equal to said limit for those deposits that exceed it.

ii.
The obligations guaranteed in favor of savers, as well as the coverage limit, must be public knowledge.

Regarding Liquidity Lines, for the purposes of calculating the Liquidity Coverage Ratio, only the undrawn portion of said lines up to the amount of commercial paper that backs them and that has a maturity date in the following thirty days will be considered as an outflow for the following thirty days.

Regarding outflows corresponding to Operational Deposit Accounts, if the deposits are associated with Bank Correspondency Services, they will be treated as deposits in accounts other than Operational Deposit Accounts.

Exit factors of cash from operations

Operations
Exit Factor

I
Unsecured financing operations:
Unsecured liabilities such as deposits, loans, and debt issuances of the institution itself, including subordinated obligations.

I.1 Unsecured retail financing:

I.1.1 Deposits in Transactional Accounts of, natural persons and natural persons with business activity and non-financial legal entities other than sovereigns, central banks, public sector entities, federal entities and municipalities, state productive enterprises, entities of the para-state public administration including development banking institutions and public development funds and trusts, eligible in accordance with the Law for the Protection of Bank Savings for guaranteed passive operations by the IPAB, whose amount does not exceed the established limit, or that corresponding in the jurisdiction in which the accounts have been constituted. 5%

I.1.2 Deposits in Transactional Accounts of natural persons and natural persons with business activity, eligible as guaranteed passive operations by the IPAB in accordance with the Law for the Protection of Bank Savings, whose amount exceeds the limit established in it, or that corresponding in the jurisdiction in which the accounts have been constituted.

I.1.2.1 Amount that does not exceed the limit established in the Law for the Protection of Bank Savings for guaranteed passive operations by the IPAB or that corresponding in the jurisdiction in which the accounts have been constituted. 5%

I.1.2.2 Amount that exceeds the established limit or those deposits not eligible in the Law for the Protection of Bank Savings for guaranteed passive operations by the IPAB or that corresponding in the jurisdiction in which the accounts have been constituted. 10%

I.1.3 Deposits of natural persons and natural persons with business activity in accounts other than Transactional Accounts.
10%

I.1.4 Operational Deposit Accounts, of non-financial legal entities, eligible as guaranteed passive operations by the IPAB in accordance with the Law for the Protection of Bank Savings, whose amount does not exceed the limit established in it, or that corresponding in the jurisdiction in which the accounts have been constituted.

I.1.4.1 Amount of Operational Deposits; that is, the amount necessary for the client to develop their normal banking activities during the following thirty days.
5%

I.1.4.2 Amount in excess of the Amount of Operational Deposits 10%

I.1.5 Deposits of non-financial legal entities other than sovereigns, central banks, public sector entities, federal entities and municipalities, state productive enterprises, entities of the para-state public administration including development banking institutions and public development funds and trusts, other than those mentioned above, eligible in accordance with the Law for the Protection of Bank Savings for guaranteed passive operations by the IPAB, whose amount does not exceed the established limit, or that corresponding in the jurisdiction in which the accounts have been constituted. 10%

I.1.6 Interest and principal due from debt instruments placed exclusively through the counter, eligible as guaranteed passive operations by the IPAB in accordance with the Law for the Protection of Bank Savings, whose amount does not exceed the limit established in it, or that corresponding in the jurisdiction in which the accounts have been constituted.

I.1.6.1 From clients who have contracted other products or services with the Institution.
5%

I.1.6.2 From clients who do not have contracted other products or services with the Institution.
10%

I.1.7 Interest and principal due from debt instruments placed exclusively through the counter between natural persons and natural persons with business activity, eligible as guaranteed passive operations by the IPAB in accordance with the Law for the Protection of Bank Savings, whose amount exceeds the limit established in it, or that corresponding in the jurisdiction in which the accounts have been constituted.

I.1.7.1 Insured amount of clients who have contracted other products or services with the Institution.
5%

I.1.7.2 Uninsured amount or of clients who do not have contracted other products or services with the Institution.
10%

I.2 Unsecured wholesale financing

I.2.1 Operational Deposit Accounts, of non-financial legal entities eligible as guaranteed passive operations by the IPAB in accordance with the Law for the Protection of Bank Savings, whose amount exceeds the limit established in it, or that corresponding in the jurisdiction in which the accounts have been constituted.

I.2.1.1 Amount of Operational Deposits covered by the IPAB deposit insurance or by the entity corresponding in the jurisdiction in which the accounts have been constituted.
5%

I.2.1.2 Amount of Operational Deposits not covered by the IPAB deposit insurance or by the entity corresponding in the jurisdiction in which the accounts have been constituted.
25%

I.2.1.3 Amount in excess of the Amount of Operational Deposits.
40%

I.2.2 Loans or deposits in accounts other than Operational Deposit Accounts, of the Federal Government, Bank of Mexico, IPAB, federal entities, municipalities and their decentralized agencies, state productive enterprises, entities of the para-state public administration including development banking institutions, and public development funds and trusts in accordance with the Organic Law of the Federal Public Administration, of central governments of foreign countries and/or their central banks, as well as multilateral development or promotion organizations of an international nature.

I.2.2.1 Amount of deposits or loans fully covered by the IPAB or by the entity corresponding in the jurisdiction in which the accounts have been constituted.
20%

I.2.2.2 Amount of deposits or loans not fully covered by the IPAB or by the entity corresponding in the jurisdiction in which the accounts have been constituted.
40%

I.2.3 Loans or deposits in accounts other than Operational Deposit Accounts, of non-financial legal entities not eligible as guaranteed passive operations by the IPAB in accordance with the Law for the Protection of Bank Savings, or eligible, but whose amount exceeds the limit established in it, or that corresponding in the jurisdiction in which the accounts have been constituted or loans. 40%

I.2.4 Loans from national and foreign financial entities, as well as deposits of any other counterparty other than those mentioned above.
100%

I.2.5 Deposits from national and foreign financial entities, as well as deposits of any other counterparty other than those mentioned above.

I.2.5.1 Operational Deposit Accounts.

I.2.5.1.1 Amount of Operational Deposits.
25%

I.2.5.1.2 Amount in excess of the Amount of Operational Deposits.
100%

I.2.5.2 Accounts other than Operational Deposit Accounts.
100%

I.2.6 Interest and principal due to the Institution from market collection instruments it has issued, including structured securities.
100%

II
Secured financing operations:
Secured liabilities such as repo operations, securities lending, and any other operation in which the financing obtained is guaranteed by an asset of the Institution itself or by an asset previously received as collateral corresponding to:

II.1 Level I Group assets pursuant to Annex 1, or when the financing comes from the Bank of Mexico.
0%

II.2 Level IIA Group assets pursuant to Annex 1.
15%

II.3 Securities resulting from the securitization of residential mortgage credits indicated in Annex 1.
25%

II.4 Level IIB Group assets of Annex 1, other than the securitization securities indicated in said group.

II.4.1 Financing that comes from the Federal Government, federal entities, municipalities and their decentralized agencies, state productive enterprises and entities of the para-state public administration, which have a credit risk weighter of 20% in accordance with the Capital Rules. 25%

II.4.2 Financing that comes from development banking institutions, and funds and public development trusts that have a credit risk weighter of 20% in accordance with the Capital Rules.
25%

II.4.3 Financing that comes from entities other than the above.
50%

II.5 Assets other than those mentioned above.

II.5.1 Financing that comes from the Federal Government, federal entities, municipalities and their decentralized agencies, state productive enterprises and entities of the para-state public administration, which have a credit risk weighter of 20% in accordance with the Capital Rules. 25%

II.5.2 Financing that comes from development banking institutions, and funds and public development trusts that have a credit risk weighter of 20% in accordance with the Capital Rules.
25%

II.5.3 Financing that comes from entities other than the above.
100%

III
Operations with financial derivative instruments:

III.1 Outflow flow from contractual payments of pending financial derivative instrument operations to be settled.
100%

III.2 Outflow flow from operations with financial derivative instruments, determined in accordance with the methodology of Annex 4, fractions I.1, II.1, and III.
100%

III.3 Outflow flow from operations with financial derivative instruments and other operations in the event of a three-level deterioration in the Institution's own Rating.
Levels will be understood as the numbers and/or signs accompanying the Ratings.
100%

IV
Foreign exchange value date operations and securities purchase-sale value date operations, when a passive position results once the active and passive part of each operation is compensated.
100%

V
Other operations:

V.1 Contingent liabilities corresponding to letters of credit and other foreign trade instruments.
0%

V.2 Liabilities generated by securitizations and any other instrument issued through a special purpose vehicle.
100%

V.3 Contingent liabilities associated with securitizations and any other instrument issued through a special purpose vehicle with an initial maturity less than or equal to one year.
100%

V.4 Collateral assets:

V.4.1 Assets granted as collateral that are other than Level I Group assets pursuant to Annex 1, for which a decline in their price could cause a margin call or granting of additional guarantees. 20%

V.4.2 Assets received as collateral in any operations, provided that the Institution itself can dispose of them without any restriction, that from the date of calculation of the Liquidity Coverage Ratio they can be unilaterally demanded by the corresponding counterparty. 100%

V.4.3 Missing guarantees to be delivered.
100%

V.4.4 Assets received as collateral that correspond to one of the assets listed pursuant to Annex 1 and that can be replaced by the counterparty with assets other than those listed in the mentioned annex. 100%

V.5 Credit and Liquidity Lines:

V.5.1 Undrawn portion of Irrevocable Credit and Liquidity Lines granted to natural persons and non-financial legal entities with net annual income or net sales less than the equivalent of 14 million UDIs, according to their latest financial statement, with figures no older than 18 months.

V.5.2 Undrawn portion of Revocable Credit Lines granted to natural persons and non-financial legal entities with net annual income or net sales less than the equivalent of 14 million UDIs, according to their latest financial statement, with figures no older than 18 months.

V.5.3 Undrawn portion of Irrevocable Credit Lines granted to natural and legal non-financial persons other than those mentioned above.

10%

V.5.4 Undrawn portion of Revocable Credit Lines granted to natural and legal non-financial persons other than those mentioned above.

Without prejudice to the foregoing, the Commission may request the Institution to assign an exit factor equivalent to that of an Irrevocable Credit Line when, in its supervisory activities, inconsistency is detected in the information presented.

V.5.5 Undrawn portion of Irrevocable Liquidity Lines granted to natural and legal non-financial persons other than those mentioned above.

30%

V.5.6 Undrawn portion of Irrevocable Credit and Liquidity Lines granted to Institutions.

40%

V.5.7 Undrawn portion of Revocable Credit Lines granted to Institutions.

10%

V.5.8 Undrawn portion of Irrevocable Credit Lines granted to financial legal entities other than Institutions.

40%

V.5.9 Undrawn portion of Revocable Credit Lines granted to financial legal entities other than Institutions.

10%

V.5.10 Undrawn portion of Irrevocable Liquidity Lines granted to financial legal entities other than Institutions.

100%

V.5.11 Undrawn portion of Revocable Credit Lines granted to legal persons other than those indicated above.

10%

V.6 Guarantees granted.

30%

V.7 Other exits from financial operations (operating expenses are excluded).

V.7.1 Contractual.

100%

V.7.2 Non-contractual or contingent.

100%

V.7.2.1 Exits derived from financial support to entities and companies that are part of the same financial group, consortium, or business group.

100%

V.7.2.2 Other exits.

100%

ANNEX 3

Cash Inflow Factors for Operations

Operations

Inflow Factor

By credit operations and unsecured operations.

I.1 Credit Portfolio.

I.1.1 Amount that the Institution is contractually entitled to receive for principal and accessories of the credit portfolio and deposits held by:

I.1.1.1 Natural persons.

50%

I.1.1.2 Federal Government, IPAB, federal entities, municipalities and their decentralized agencies, entities of the public administration paraestatal according to the Organic Law of the Federal Public Administration, central governments of foreign countries, international multilateral development or promotion organizations, and other non-financial legal persons.

50%

I.1.1.3 National and foreign financial entities, the Bank of Mexico, and central banks of foreign countries.

100%

I.2 Debt securities and shares.

Amount that the Institution is contractually entitled to receive for principal and accessories.

100%

I.3 Deposits in accounts other than Operational Purpose Deposit Accounts in national and foreign financial entities.

100%

I.4 Operational Purpose Deposit Accounts that the Institution maintains in national and foreign financial entities.

I.4.1 Amount of Operational Purpose Deposits constituted by the Institution in national and foreign financial entities.

I.4.2 Amount in excess of the Amount of Operational Purpose Deposits that the Institution constitutes in national and foreign financial entities.

100%

By secured operations. (1)

Amount that the Institution is contractually entitled to receive for repo operations, securities lending, and any other operation different from those referred to in fraction I of this annex, in which the Institution has received a guarantee for the financing granted, corresponding to:

II.1 Assets of Level I Group according to Annex 1.

II.2 Assets of Level IIA Group according to Annex 1.

15%

II.3 Securities resulting from securitization of residential mortgage credits indicated in Annex 1.

25%

II.4 Assets of Level IIB Group, other than the securitization securities indicated in said group.

50%

II.5 Assets other than those indicated above.

100%

III

Operations with financial derivative instruments:

III.1 Inflow flow from contractual payments of operations with financial derivative instruments pending settlement.

100%

III.2 Inflow flow from operations with financial derivative instruments determined according to the methodology indicated in Annex 4, fractions I.1, II.1, and III.

100%

Foreign exchange operations with value date and purchase-sale operations of securities with value date, when an active position results after compensating the active and passive part of each operation.

100%

Other operations:

V.1 Undrawn portion of Credit Lines in favor of the Institution that have not been drawn.

V.2 Financial income that the Institution is contractually entitled to receive for operations not indicated above as a contractual inflow flow.

100%

For the purposes of this annex, it will be understood that an operation is not secured if the Institution does not receive the collateral assets, or when the Institution cannot freely dispose of the assets received as collateral.

ANNEX 4

Methodology for Determining Cash Outflows and Inflows from Operations with Financial Derivative Instruments

To determine the cash outflows and inflows from operations with financial derivative instruments, Institutions must apply the methodology indicated in this annex for each counterparty.

I. Flows from Over-the-Counter Derivatives without Netting Agreement with the Counterparty to be received or delivered in the next 30 days

Only the inflow or outflow flows that are scheduled to be received or delivered, respectively, during the next 30 days for over-the-counter financial derivative instruments that are not subject to a master contract containing a clause that allows extinguishing by netting all derivative operations carried out under said master contract, shall be considered.

Likewise, operations with said financial derivative instruments in which a winning position is maintained shall be added separately from those in which a losing position is maintained. Inflow flows shall not be offset against outflow flows with the same counterparty.

The inflow and outflow flows (F) referred to in this section are defined as the contractual inflow and outflow flows that are scheduled to be received or delivered, respectively, during the next 30 days for over-the-counter financial derivative instruments. Said flows must be calculated according to the valuation methodologies used in each Institution on the date of the calculation of the Liquidity Coverage Ratio. Additionally, for both active and passive operations in which the Institution itself or the counterparty have the right to exercise the claim at some point within the 30-day horizon, it will be assumed that said option will be exercised when said operation is in the money.

The method to calculate the cash flows to be delivered or received for these operations will be as follows:

I.1. Outflow flow from financial derivative instruments

Where,

Flows to be delivered or received in the next 30 days corresponding to operation j with counterparty i.

Outflow flow from financial derivative instruments with counterparty i.

Outflow flow from financial derivative instruments with counterparty i considering the assets granted as collateral to said counterparty.

Outflow flow from financial derivative instruments.

Assets granted as collateral to counterparty i after applying the respective discounts according to the Eligible Liquid Assets guidelines.

I.2 Inflow flow from financial derivative instruments

Where,

Flows to be delivered or received in the next 30 days corresponding to operation j with counterparty i.

Inflow flow from financial derivative instruments by market valuation with counterparty i.

END

Inflow flow from financial derivative instruments.

Assets received as collateral from counterparty i over which there are rights of use or sale after applying the respective discounts according to the Eligible Liquid Assets guidelines.

II. Flows from Over-the-Counter Derivatives with Netting Agreement with the Counterparty to be received or delivered in the next 30 days.

Only the inflow or outflow flows that are scheduled to be received or delivered, respectively, during the next 30 days for over-the-counter financial derivative instruments that are subject to a master contract containing a clause that allows extinguishing by netting all derivative operations carried out under said master contract, shall be considered.

Likewise, operations with said financial derivative instruments in which a winning position is maintained shall be added separately from those in which a losing position is maintained.

Inflow flows shall be offset against outflow flows with the same counterparty.

The inflow and outflow flows (F) referred to in this section as the contractual inflow and outflow flows that are scheduled to be received or delivered, respectively, during the next 30 days for over-the-counter financial derivative instruments, must be calculated according to the valuation methodologies used in each Institution on the date of the calculation of the Liquidity Coverage Ratio.

Additionally, for both active and passive operations in which the Institution itself or the counterparty have the right to exercise the claim at some point within the 30-day horizon, it will be assumed that said option will be exercised when said operation is in the money.

The method to calculate the outflow and inflow flows from operations with financial derivative instruments will be as follows:

II.1 Outflow flow from operations with financial derivative instruments

The outflows from operations with over-the-counter financial derivative instruments are composed of the following sum, whose components are defined below.

For over-the-counter operations with financial derivative instruments in which the master contract allows extinguishing by netting all derivative operations carried out under said contract in a single settlement regardless of the type of underlying, Institutions must apply the following:

For over-the-counter operations with financial derivative instruments in which the master contract allows extinguishing by netting all derivative operations for the same type of underlying carried out under said contract in a single settlement, Institutions must apply the following:

Where,

Flows to be delivered or received in the next 30 days corresponding to operation j with underlying p, with counterparty i.

Outflow flow from operations with financial derivative instruments with counterparty i compensating by counterparty.

Outflow flow from operations with financial derivative instruments with counterparty i compensating by underlying.

Outflow flow from operations with financial derivative instruments.

Outflow flow from operations with financial derivative instruments compensating by counterparty.

Outflow flow from operations with financial derivative instruments compensating by underlying.

Assets granted as collateral to counterparty i after applying the respective discounts according to the Eligible Liquid Assets guidelines.

II.2 Inflow flow from operations with financial derivative instruments

The inflows from operations with over-the-counter financial derivative instruments are composed of the following sum, whose components are defined below.

Where,

Flows to be delivered and received in the next 30 days corresponding to operation j with underlying p, with counterparty i.

Inflow flow from operations with financial derivative instruments with counterparty i under a master contract that allows extinguishing by netting all derivative operations regardless of the type of underlying.

Inflow flow from operations with financial derivative instruments with counterparty i under a master contract that only allows extinguishing by netting all derivative operations when it comes to the same type of underlying.

END

Inflow flow from operations with financial derivative instruments.

Inflow flow from operations with financial derivative instruments compensating by counterparty.

Inflow flow from operations with financial derivative instruments compensating by underlying

Assets received as collateral from counterparty i over which there are rights of use or sale, after applying the respective discounts according to the Bank of Mexico Eligible Liquid Assets guidelines (ML Form).

III. Determination of Contingent Outflow Flow from Operations with Financial Derivative Instruments (Look Back Approach)

Institutions must calculate the contingent outflow flow from operations with financial derivative instruments as the maximum absolute value of the sum of the amounts referred to in subsections a) and b) below, calculating said subsections for each consecutive thirty-day horizon during the last 24 months (Look Back Approach). For each consecutive 30-day horizon, the following must be summed:

The accumulated net collateral flow, which are the variations in the balance of collateral received minus the variations in the balance of collateral delivered, resulting from changes in the valuation of operations with financial derivative instruments, excluding variations in the balances of collateral delivered or received resulting from the constitution of initial margins or the settlement of operations, plus

The accumulated variation in the market valuation of the portfolio of operations with financial derivative instruments that correspond to operations that are not covered by previously granted or received collateral or that have not been matched by an exchange of collateral.

For the purposes of determining the accumulated variation referred to in this subsection, Institutions may exclude those variations that are the result of the settlement of operations with financial derivative instruments that are part of the portfolio of operations provided for in this subsection that are equal in terms of the type of instrument, original term, underlying, and notional, but in which the exposure to market movements is contrary to operations considered in subsection a) above.

Institutions that cannot identify the net collateral flow referred to in subsection a) above must estimate the contingent outflow flow from operations with financial derivative instruments using only what is established in subsection b).

The requirement for the contingent exits that Institutions may face from operations with financial derivative instruments referred to in this section must be calculated considering both over-the-counter operations with financial derivative instruments and those traded on exchanges recognized by Mexican financial authorities. This calculation must be obtained on a daily basis, so it will not be restricted to the variations observed at the close of each month.

In terms of the foregoing, the calculation of the contingent outflow flow from operations with financial derivative instruments referred to in this fraction III must be carried out in accordance with the following equation:

Where,

As follows:

Contingent outflow flow from operations with financial derivative instruments calculated for the last 24 months.

Market valuation of the Institution's operations with financial derivative instruments on day t that have not resulted in an exchange of collateral nor have been covered by previously granted or received collateral.

Variation in the market valuation of the Institution's operations with financial derivative instruments from day t to day t-30 that has not been matched by an exchange of collateral nor is covered by previously granted or received collateral.

Institutions may exclude from the variation referred to in the previous paragraph, those variations that are the result of the settlement of operations with financial derivative instruments when these operations correspond to operations equal in terms of the type of instrument, original term, underlying, and notional, but in which the exposure to market movements is contrary to operations considered in subsection a) of this fraction III.

Variation in the balance of collateral received on day s minus the variation in the balance of collateral delivered on day s, excluding variations that have been the result of operations that have been settled or of the constitution of initial margins. For the purposes of calculating the amount to be excluded from the variations referred to that are under master contracts where the collateral delivered or received is not segregated by operation, Institutions must consider the proportional part corresponding to said collateral.

Such proportion will be the market value of the operations that have been settled plus the market value of the operations that have constituted initial margins with respect to the market value of all operations that are under said master contract.

Net collateral flow which are the variations in the balance of collateral received minus the variations in the balance of collateral delivered from day t to day t-30.

ANNEX 5

Liquidity Coverage Ratio Disclosure Format

Institutions must disclose the information indicated in Table I.1. Regarding this, Institutions must take into consideration the explanation of the note corresponding to the numerical reference shown in the first column of said format, in accordance with the following:

The amounts corresponding to the "Unweighted Amount (average)" column will be calculated as the simple average of the amounts on the date of calculation of the Liquidity Coverage Ratio that Institutions have reported during the immediate previous quarter, in accordance with article 9 of these provisions.

The amounts corresponding to the "Weighted Amount (average)" column will be calculated as the simple average of the amounts on the date of calculation of the Liquidity Coverage Ratio that Institutions have reported during the immediate previous quarter in accordance with articles 10, 11, and 12 of these provisions, as applicable.

Cells marked as "Not Applicable" shall not be filled.

The Liquidity Coverage Ratio shown in row "23" will correspond to the simple average of the Liquidity Coverage Ratio that Institutions have reported during the immediate previous quarter.

Table I.1

Liquidity Coverage Ratio Disclosure Format

Individual Calculation

Consolidated Calculation

(Amounts in millions of pesos)

Unweighted Amount
(average)

Weighted Amount
(average)

Unweighted Amount
(average)

Weighted Amount
(average)

ELIGIBLE LIQUID ASSETS

Total Eligible Liquid Assets.

Not Applicable

CASH OUTFLOWS

Unsecured retail funding.

Stable funding.

Less stable funding.

Unsecured wholesale funding.

Operational deposits.

Non-operational deposits.

Unsecured debt.

Secured wholesale funding.

Not Applicable

Additional requirements:

Outflows related to financial derivative instruments and other collateral requirements.

Outflows related to losses from debt instrument funding.

Credit and liquidity lines.

Other contractual financing obligations.

Other contingent financing obligations.

TOTAL CASH OUTFLOWS

Not Applicable

CASH INFLOWS

Cash inflows from secured operations.

Cash inflows from unsecured operations.

Other cash inflows.

TOTAL CASH INFLOWS

Adjusted Amount

TOTAL ELIGIBLE LIQUID ASSETS

Not Applicable

TOTAL NET CASH OUTFLOWS

Not Applicable

LIQUIDITY COVERAGE RATIO COEFFICIENT

Not applicable

Table I.2

Notes to the Liquidity Coverage Ratio disclosure format

Reference

Description

Amount of Eligible Liquid Assets before the application of the adjustments indicated in fraction II of article 10 of these provisions.

Sum of reference 3 and reference 4.

Outflow associated with unsecured retail financing corresponding to a 5% outflow factor in accordance with Annex 2 of these provisions.

Outflow associated with unsecured retail financing corresponding to a 10% outflow factor in accordance with Annex 2 of these provisions.

Sum of reference 6, reference 7, and reference 8.

Outflow associated with unsecured wholesale financing corresponding to a 5% and 25% outflow factor in accordance with Annex 2 of these provisions.

Outflow associated with unsecured wholesale financing corresponding to a 20% and 40% outflow factor in accordance with Annex 2 of these provisions, and those loans and deposits from national and foreign financial entities with a 100% weight.

Outflow associated with unsecured wholesale financing corresponding to a 100% outflow factor in accordance with Annex 2 of these provisions, excluding loans and deposits from national and foreign financial entities with a 100% weight.

Outflow associated with secured financing in accordance with Annex 2 of these provisions.

Sum of reference 11, reference 12, and reference 13.

Outflow associated with financial derivative instruments and collateral assets in accordance with Annex 2 of these provisions.

Outflow associated with liabilities generated by securitizations and any other structured title, as well as contingent liabilities associated with securitizations and special purpose vehicles with an initial maturity less than or equal to one year.

Outflow associated with credit lines and liquidity in accordance with Annex 2 of these provisions.

Outflow associated with other cash outflows considered contractual, in accordance with Annex 2 of these provisions.

Outflow associated with other cash outflows considered contingent, in accordance with Annex 2 of these provisions.

Total cash outflow in accordance with article 11 of these provisions. This amount will be the sum of references 2, 5, 9, 10, 14, and 15.

Inflow associated with secured operations in accordance with Annex 3 of these provisions.

Inflow associated with unsecured operations, excluding debt securities and shares, in accordance with Annex 3 of these provisions.

Inflow associated with financial derivative instruments and other inflows, as well as debt securities and shares, in accordance with Annex 3 of these provisions.

Total cash inflow in accordance with article 12 of these provisions. This amount will be the sum of references 17, 18, and 19.

Eligible Liquid Assets in accordance with article 10 of these provisions.

Total Net Cash Outflow in accordance with article 1 of these provisions.

Liquidity Coverage Ratio in accordance with article 1 of these provisions.

Additionally, Institutions must include in the disclosure of the above format information regarding the Liquidity Coverage Ratio in order to facilitate the understanding of the results. To this end, they must consider the following elements:

The natural days included in the quarter being disclosed.

The main causes of the Liquidity Coverage Ratio results and the evolution of its main components.

Changes in the main components within the reported quarter;

The evolution of the composition of Eligible and Computable Liquid Assets;

The concentration of its funding sources;

Exposures in financial derivative instruments and possible margin calls;

Currency mismatches;

A description of the degree of centralization of liquidity management and the interaction between group units;

Cash outflows and inflows that, where applicable, are not captured in this framework, but that the Institution considers relevant for its liquidity profile, and,

The impact on the Ratio of the incorporation of Entities subject to Consolidation, as well as as outflows derived from financial support to entities and companies that are part of the same financial group, consortium, or business group that, in accordance with the Policies and Criteria, the Institution's board of directors has authorized granting.

Likewise, Institutions must disclose at minimum the information corresponding to the quarter immediately preceding the one being disclosed, as follows:

Quantitative information:

Concentration limits regarding different groups of received collateral and main funding sources;

Liquidity risk exposure and funding needs at the Institution level, taking into account legal, regulatory, and operational limitations on liquidity transferability, and

Balance sheet operations broken down by maturity terms and resulting liquidity gaps, including operations recorded in off-balance sheet accounts.

II.

Qualitative information:

How liquidity risk is managed in the Institution, considering for this effect the tolerance to such risk; the structure and responsibilities for liquidity risk management; internal liquidity reports; liquidity risk strategy and policies and practices across business lines and with the board of directors;

The funding strategy, including diversification policies, and whether the funding strategy is centralized or decentralized;

Liquidity risk mitigation techniques used by the Institution;

An explanation of how stress tests are used, and

A description of contingent funding plans.

ANNEX 6

Determination of the Amount of Available Stable Funding

Institutions, to determine the Amount of Available Stable Funding, must observe the following:

All their liability operations and their capital will be included, including those contingent liability operations recorded in off-balance sheet accounts.

ii.

The amount to be considered for each operation will be the one corresponding in accordance with the Accounting Criteria unless otherwise established in these provisions, attending to what is stated in article 4 of these provisions multiplied by its corresponding available stable funding factor assigned to it based on the classification detailed in this annex.

iii.

Regarding issuances by the Institution itself, which have been acquired and reported by a brokerage house with which there are equity links, the remaining term of the operation in which they were reported by the brokerage house will be assigned to them.

The factors for determining available stable funding will be:

Liabilities and capital with a 100% factor

Fundamental capital defined in the Provisions article 2 Bis 6, fraction I, subsection a), without considering the deductions established in said fraction, and Non-Fundamental Basic Capital defined in the Provisions in article 2 Bis 6, fraction II.

The total of any capital instrument not included in the above concept that has a remaining term greater than or equal to one year, excluding those instruments with an option (explicit or implicit) that, if exercised, would reduce the remaining term below one year.

Liabilities with a residual term equal to or greater than one year.

II.

Liabilities with a 95% weight

Demand deposits or with a residual term less than one year to which a 5% outflow factor applies in accordance with what is established in section I.1 Unsecured retail financing of Annex 2 of these provisions.

III.

Liabilities with a 90% weight

Demand deposits or with a residual term less than one year to which a 10% outflow factor applies in accordance with what is established in section I.1 Unsecured retail financing of Annex 2 of these provisions.

IV.

Liabilities with a 50% weight

Credit instruments issued by the entity with a remaining term between six months and one year.

Liabilities other than those referred to in the previous subsections, with a remaining term less than one year with non-financial counterparties, including the complementary part of net capital according to Title First Bis of the Provisions, as well as capital instruments not included as net capital for exceeding the limit established in said Title First Bis.

Amount of Deposits for Operational Purposes from national and foreign financial entities.

Financing obtained, whose remaining term is less than one year, from central governments, federal entities and municipalities, public sector entities, state-owned productive companies, development banking institutions, and public development funds and trusts.

Other liabilities with a remaining term between six months and one year, including liabilities with the central bank or with financial entities.

Liabilities with a 0% weight

Credit instruments issued by the entity with a remaining term less than six months.

Financing received with a remaining term less than six months from the following counterparties:

Central banks.

National and foreign financial entities.

Financial institutions with Deposits for Operational Purposes exclusively for the amount exceeding the Deposit Amount for Operational Purpose.

Operations pending settlement for operations with financial derivative instruments.

Foreign exchange operations with value date.

Liabilities that were not included in the previous subsections, including:

Liabilities available for operations with financial derivative instruments, defined in accordance with Annex 9 of these provisions.

Passive operations that are part of Interdependent Operations.

Liabilities with an indefinite remaining term, other than those referred to in numerals I to IV of this annex.

ANNEX 7

Amount of Required Stable Funding for unrestricted assets and other operations

Institutions, to determine the Amount of Required Stable Funding for unrestricted assets and other operations, must observe the following:

Institutions must identify assets that are not pledged as collateral and that the Institutions themselves can dispose of without any restriction, as well as those pledged as collateral in some operation or for some reason that the Institutions themselves cannot dispose of for their liquidation, sale, transfer, or assignment. For this annex, only assets that are not pledged as collateral nor subject to any restriction should be taken into account.

II.

The amount to be considered for each operation will be the one corresponding in accordance with the Accounting Criteria attending to what is stated in article 4 of these provisions, multiplied by its corresponding required stable funding factor assigned to it based on the classification detailed in this annex.

III.

The Amount of Required Stable Funding will be the result of summing the amounts calculated based on this annex plus the amounts calculated based on Annex 8.

For the purposes of this annex, in addition to the definitions contained in article 1 and Annex 6 of these provisions, the following shall be understood:

Financing to entities or companies

that are part of the same financial group, consortium, or business group, approved by the board of administration: the maximum amount of financing that the Institution could grant to some entities or companies that make up the same financial group, consortium, or business group for the continuation of their activities, in accordance with the Policies and Criteria approved by the Institution's board of administration.

Credit Risk Weighting :

that which corresponds to the operation in question in accordance with the standard method referred to in the Second Section of Chapter III of Title First Bis of the Provisions.

For the purposes of this annex, value date operations are considered as if they had already been settled. That is, assets to be received from value date operations will receive treatment as if they were already in the Institution's possession.

The factors for determining required stable funding will be:

Assets with a 0% weight

Eligible Liquid Assets that belong to level I group in accordance with these provisions:

Cash, banknotes, and coins.

Deposits at the Bank of Mexico, including monetary regulation deposits not pledged as collateral, as well as deposits in central banks of foreign countries with immediate availability.

Debt securities issued by the Bank of Mexico that are part of monetary regulation deposits.

Debt securities issued by central banks of foreign countries with a term less than six months, which have a credit risk weight of zero percent.

Credits and deposits at foreign central banks with a term less than six months.

Value date operations carried out with securities issued by the Bank of Mexico or foreign central banks, in which the term of the security is less than six months.

Cash to be received from value date operations.

Operations with financial derivative instruments pending settlement.

Active operations that are part of Interdependent Operations.

II.

Assets with a 5% weight

The following Eligible Liquid Assets that belong to level I group in accordance with these provisions:

Debt securities issued by central banks, other than those contemplated in numeral I.A.c. above, with a term greater than six months, which have a credit risk weight of zero percent.

Debt securities issued by the IPAB or the Federal Government or guaranteed by the same, with the exception of special cetes instruments, including debt securities issued by development banking institutions, which have a credit risk weight of zero percent, as well as securities issued by structured vehicles when such securities are issued by the Government of Mexico City.

Debt securities issued by central governments of foreign countries, and their public entities, which have a credit risk weight of zero percent.

Debt securities issued by central governments of foreign countries in which the Institution has a Financial Subsidiary, and their central banks, which have a credit risk weight different from zero.

Debt securities issued by multilateral development or promotion organizations of an international character, which have a credit risk weight of zero percent.

III.

Assets with a 10% weight

Credits granted to financial institutions with a term less than six months, secured with:

Eligible Liquid Assets that belong to level I group in accordance with these provisions and that the latter can be used freely by the Institution during the validity of the credit.

IV.

Assets with a 15% weight

Eligible Liquid Assets that belong to level IIA group in accordance with these provisions.

Unsecured credits with a term less than six months, granted to financial institutions.

Deposits that do not meet Operational Purposes that the Institution maintains in national and foreign financial entities with a term less than six months and call money granted to these entities.

Credits granted to financial institutions with a term less than six months, secured with assets other than Level I Eligible Liquid Assets in accordance with these provisions.

Assets with a 50% weight

Eligible Liquid Assets that belong to level IIB group in accordance with these provisions.

Credit portfolio with a term less than one year granted to:

Individuals and non-financial legal entities.

Development banking institutions and public development funds and trusts.

Federal Government, IPAB, federal entities, municipalities, and their decentralized organisms, entities of the para-state public administration according to the Organic Law of the Federal Public Administration, central governments of foreign countries, multilateral development or promotion organizations of an international character.

Credits with a remaining term between six months and one year, granted to national and foreign financial entities, and foreign central banks.

Amounts of Deposits for Operational Purposes that the Institution maintains in national and foreign financial entities with a term less than one year.

Time deposits at foreign central banks with a remaining term between six months and one year.

Deposits in national and foreign financial entities and call money granted to these entities, other than Operational Purpose Deposit Accounts, with a remaining term between six months and one year.

Securities other than Eligible Liquid Assets with a maturity term less than one year.

Other unrestricted loans that have not been included in the above categories with a remaining term less than one year.

VI.

Assets with a 65% weight

Active residential mortgage portfolio eligible for a credit risk weighting treatment equal to or less than 35%, with a remaining term greater than one year.

Credit portfolio with a credit risk weight less than or equal to 35%, with a remaining term greater than one year, granted to:

Development banking institutions and public development trust funds.

Foreign central banks.

Secured operations with non-financial counterparties, with a credit risk weight less than or equal to 35%, whose amount to be received is in a term greater than one year.

Other unrestricted loans with non-financial counterparties that have not been included in the above categories, that qualify for a credit risk weighting equal to or less than 35%, with a remaining term greater than one year.

VII.

Assets with an 85% weight

Debt securities not included in Eligible Liquid Assets with a maturity term greater than one year.

Negotiable shares that do not qualify within Eligible Liquid Assets.

Active mortgage portfolio eligible for a credit risk weighting treatment greater than 35%.

Credits with a credit risk weight greater than 35%, with a remaining term greater than one year, issued by:

Individuals.

Foreign central banks.

Initial margin pledged as collateral in operations with financial derivative instruments, provided that if the treatment established in accordance with Annex 8 of these provisions were applied to them, such collateral would have a weight less than 85%.

Cash or other assets used to contribute to the loss absorption fund of a central counterparty.

Basic raw materials (commodities) physically traded, including gold, from those permitted by applicable regulation.

Other unrestricted loans with non-financial counterparties that have not been included in the above categories, that are not in non-performing portfolio, that do not qualify for a credit risk weighting less than or equal to 35%, with a remaining term greater than one year.

VIII.

Assets and other operations with a 100% weight

Debt securities in default, net of provisions that the Institution has constitutionally established.

Overdue Portfolio in accordance with the Accounting Criteria established in the Provisions, net of its preventive risk estimates constituted in accordance with such Provisions.

Credits with a remaining term greater than one year granted to national and foreign financial entities.

Time deposits at foreign central banks with a maturity term greater than one year.

Deposits in national and foreign financial entities, with a remaining term greater than one year.

Assets from operations with financial derivative instruments that require stable funding, estimated based on Annex 9 of these provisions.

5% of the market valuation of the passive positions of operations with financial derivative instruments (that is, when their replacement cost is negative, according to the definition of Annex 9).

Total of the deductions made for the integration of fundamental capital established in article 2 bis 6, fraction I, subsections b) to s) of the Provisions.

Amount of financing that, in accordance with the Policies and Criteria, has been approved by the board of administration, to address the liquidity risk of the Institution derived from operations of entities or companies that are part of the same financial group, consortium, or business group.

Other assets that do not qualify in the above items.

IX.

5% weight for required contingent financing.

Undrawn portion of credit lines, including liquidity lines, revocable and irrevocable

up to the amount that the Institution is contractually obligated to finance and that may be

exigible within a one-year horizon.

Guarantees issued, letters of credit, and other international trade instruments.

Other non-contractual contingent obligations.

ANNEX 8

Factors for the Required Stable Funding Amount for Restricted Assets or Assets

Granted as Collateral

Restricted assets or assets granted as collateral included in this Annex shall form part of the Required Stable Funding Amount for the purposes of these provisions and shall be classified according to the factor corresponding to them as indicated below:

Securities, shares, and credits held and granted as collateral or restricted.

Securities, shares, and credits received in repo or lending operations that have in turn been restricted or granted as collateral.

Other assets that have been granted as collateral or that are restricted.

Furthermore, Institutions, to determine the Required Stable Funding for restricted assets and

other operations, must observe the following:

For assets granted as collateral for exceptional operations with the Bank of Mexico, Institutions may use a required stable funding factor equivalent to the one these assets would receive if they were not delivered as collateral, when the nature of the operations so deems it convenient by the Bank of Mexico, prior favorable opinion of the Commission, in which case the Bank of Mexico will inform the Institutions through the pertinent aids.

For the purposes of the preceding paragraph, those operations that are part of temporary programs established by the Bank of Mexico to achieve its monetary policy mandate in a generalized period of stress or in the face of adverse macroeconomic conditions may be considered exceptional.

The determination of the Required Stable Funding Amount factor will be based on the term of the restriction of the securities or shares in question.

Restriction term less than 6 months

The factor will be the one corresponding to the asset according to Annex 7. That is, the asset will be treated as if it had no restriction or had not been granted as collateral, taking into account only the term of the asset.

II.

Restriction term from 6 months and less than 1 year

The factor will be the greater of the asset's factor according to its treatment under Annex 7 of these provisions and 50%.

In particular, the following must receive a treatment of 50%:

Debt securities considered as Eligible Liquid Assets belonging to Level I group in accordance with these provisions.

Debt securities considered as Eligible Liquid Assets belonging to Level IIA group in accordance with these provisions.

Debt securities considered as Eligible Liquid Assets belonging to Level IIB group in accordance with these provisions.

Debt securities other than those considered as Eligible Liquid Assets belonging to Levels I, IIA, and IIB groups in accordance with these provisions with a term less than or equal to one year (excluding shares).

Credits for which the portfolio term is less than one year.

The rest of the assets must be reported at the factor corresponding to them in Annex 7 of these provisions, where said factor must be strictly greater than 50%.

III.

Restriction term greater than or equal to 1 year

All operations in this category, without exception, will have a stable funding requirement of 100%.

Restricted assets in operations with financial derivative instruments that have been granted as variation margin must be excluded from this section and must be reported in Annex 9 of these provisions for the determination of assets and liabilities from operations with financial derivative instruments. Likewise, restricted assets in operations with financial derivative instruments that have been granted as initial margin must be excluded when the factor that would be assigned to them according to this Annex is less than 85%.

ANNEX 9

Methodology for Determining Assets and Liabilities from Operations with Financial

Derivative Instruments for Purposes of the Net Stable Funding Ratio

To determine the amount for operations with financial derivative instruments in the calculation of the components of the Net Stable Funding Ratio; that is, to determine the Required Stable Funding Amount and the Available Stable Funding Amount, Institutions must apply the methodology indicated in this Annex for each counterparty.

The amount to be considered will depend on the current replacement cost of the operations with financial derivative instruments. Operations will be considered a liability if their current replacement cost, calculated in accordance with this Annex, is negative, or as assets if said cost is positive.

The current replacement cost will be the amount resulting from the difference between the fair value of the active and passive parts of each operation, as provided in article 2 Bis 22 of the Provisions.

Institutions may compensate operations bilaterally with each counterparty, obtaining a compensated current replacement cost, measured as the amount resulting from summing the differences between the fair values of the active and passive parts of each operation held with the same counterparty, provided that:

There is a master contract that allows extinguishing by netting all derivative operations carried out under said contract and effecting or receiving a single settlement, in the event of bankruptcy, default, or any other situation contemplated in the contract. The master contract must not allow that, in the event of default by one of the parties, the other party reduces or cancels the payment of its obligations;

ii.

That the settlement mentioned in the previous numeral is legally enforceable in all pertinent jurisdictions, including the jurisdiction where the counterparty is domiciled, the jurisdiction governing the operations carried out, and that governing the master contract or that could affect the execution of bilateral netting, and

iii.

That they have procedures to guarantee the review of the legal characteristics of bilateral netting agreements when modifications occur in the legislation of any of the pertinent jurisdictions that could potentially affect their execution.

The Commission and the Bank of Mexico may jointly determine those cases in which the conditions described in this Annex are not met, in which case Institutions may not apply the netting of their operations.

For the purposes of this Annex, in addition to the definitions contained in article 1 of these provisions, the following shall be understood:

Available Liabilities from Operations with Financial Derivative Instruments: the amount that

results,

if positive, from subtracting the amount of liabilities from derivatives minus the amount of assets from derivatives,

or zero in any other case.

Liabilities from Derivatives: It will be the sum of the passive current replacement cost minus partial settlements delivered (variation margin delivered). In the event that Institutions recognize in their balance sheet the asset corresponding to the variation margin delivered, said asset will not be considered in the Required Stable Funding Amount of the Institutions.

Assets from Operations with Financial Derivative Instruments Requiring Stable Funding: the amount that results, in case it is positive, from subtracting the amount of Assets from Derivatives minus the amount of Liabilities from Derivatives, or zero in any other case.

Assets from Derivatives: It will be the sum of the active current replacement cost minus partial cash settlements (admissible cash variation margin) received.

For the purposes of this Annex, admissible cash variation margins received shall be understood as those that meet the conditions specified in Annex 1-O Bis (Disclosure of Information Relative to the Leverage Ratio) of the Provisions.

The amount that Institutions must consider for the calculation of the Required Stable Funding Amount will be the amount of Assets from Operations with Financial Derivative Instruments Requiring Stable Funding that results, in case it is positive, from subtracting the amount of Assets from Derivatives minus the amount of Liabilities from Derivatives, or zero in any other case.

The amount that Institutions must consider for the calculation of the Available Stable Funding Amount will be that of the Available Liabilities from Operations with Financial Derivative Instruments.

ANNEX 10

Format for Disclosure of the Net Stable Funding Ratio

Institutions must disclose the information indicated in Table I.3. Regarding this, Institutions must take into consideration the explanation of the note corresponding to the numerical reference shown in the first column of said format, in accordance with the following:

The amounts corresponding to the column "Amount unweighted by residual term" will be calculated as the average of the amounts on the calculation dates of the Net Stable Funding Ratio that the Institutions have reported during each of the months of the immediate previous quarter, in accordance with article 16 of these provisions, considering, as appropriate, the amount assigned to each residual term.

The amounts corresponding to the column "Weighted Amount" will be calculated as the average of the amounts on the calculation date of the Net Stable Funding Ratio that the Institutions have reported during each of the months of the immediate previous quarter in accordance with article 16 of these provisions, as appropriate.

Cells marked as "Not Applicable" must not be filled.

The Net Stable Funding Ratio shown in row "34" will correspond to the average of the Net Stable Funding Ratio that the Institutions have reported on the last Business Day of each of the months of the immediate previous quarter.

Table I.3

Format for Disclosure of the Net Stable Funding Ratio

Individual Figures

Consolidated Figures

(Amounts in millions of

pesos)

Amount unweighted by residual term

Weighted

Amount

Amount unweighted by residual term

Weighted

Amount