Investment portfolio
Within the framework of its liquidities management, the Bank works with four different portfolios, managed with the desire to give the Bank the best protection for its capital and reserves within the framework of an extremely conservative market risk and credit profile.
The Bank's balance sheet assets include four Portfolios, of which one Monetary Portfolio and three Securities Portfolios:
- The Treasury Monetary Portfolio consists of short term placements with maturities up to 1 year.
The strategic objective of this portfolio is to manage day-to-day cash flow in all required currencies.
Short term placements with maturities up to three months must -at the time of purchase- have a minimum rating BBB+ for Short Term Deposits. Short Term placements with maturities up to one year must have an A- rating at the time of purchase. - The Short Term Liquidity Securities Portfolio consists of short term securities with maturities up to 1 year.
These securities represent an alternative to bank deposits and complement the Treasury Monetary Portfolio in strengthening the short term liquidity position of the Bank.
Short Term Sovereign Bonds with maturities up to three months must have a minimum rating of BBB, and Securities with maturities up to one year must have an A- rating at the time of purchase. - The Medium Term Liquidity Securities Portfolio consists of securities investments with maturities from 1 year up to 15 years.
The strategic objective is to strengthen the Bank’s liquidity position, while achieving a satisfactory return.
Medium Term Securities must have an A+ rating at the time of purchase. - The Long Term Liquidity Securities Portfolio consists of securities investments with maturities from 1 year up to 30 years.
Securities in this portfolio are required to have a minimum rating of A+ when purchased.