BANXICO issued exceptions to the liquidity requirements rules for Multiple Banking Institutions

April 14, 2020 – In order to prevent liquidity provisions from promoting behavior among multiple banking institutions that could exacerbate the shocks that the SARS-CoV2 (COVID-19) pandemic has caused and generate systemic conditions of illiquidity that make it difficult to face these challenges, Banco de México has determined to issue the following exceptions:

  • “Those assets that, as of February 28, 2020, have been considered as Eligible Liquid Assets classified in Level IIA or IIB Groups, and who, after that date, no longer satisfy the conditions to maintain said classification, may continue computing in the classification they had as of February 28, 2020 during the term of this exception. ”
  • Exceptions in corrective actions II, III, IV and V of the mentioned rules.
  • For the calculation of the LBA they may exclude the month of March 2020 for the calculation of said amounts and use the month that would have been excluded if March 2020 were included for the computation.

These exceptions will apply to the corresponding liquidity requirements under the Liquidity Provisions as of February 28, 2020 and will remain in effect until August 31, 2020.

Jurisdictions affected: Mexico

For more information, visit Banco de México.

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