BANXICO – Circular 35/2020

September 23, 2020 – Banco de México published the extension for various provisions issued to mitigate the ravages generated by the COVID-19 pandemic.

These measures consider:

  • Financing from Banco de México guaranteed with qualified bank credit assets, for channeling them to micro, small and medium-sized companies, extension of extension to February 28, 2021.
  • Provision of resources to credit institutions to channel credit to micro, small and medium-sized companies, as well as to individuals, extension of extension until February 28, 2021.
  • Repo operations of corporate securities, government securities and securities lending with Banco de México to cover liquidity needs, extension to February 28, 2021.
    Ordinary liquidity facility, extension to February 28, 2021.

 

These exceptions generate a favorable impact on the management of the Liquidity Coverage Ratio (LCR, for its acronym in English) and the Stable Financing Ratio (NSFR), calculated indicators, based on the balances reported in the reports. Regulatory Liquidity Management (ML) and Stable Funding (FE), respectively.

Additionally, he sent the regulatory report “Measures 7 and 8” applicable to those institutions that obtain the resources or financing to which the aforementioned measures refer (Circulars 20/2020 and 25/2020).

Jurisdictions affected: Mexico

For more information, visit Banco de México.



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