Adjustable-interest loans cannot be redeemed at par, but these loans are typically financed by short-term bonds, limiting the risk on the outstanding debt. Several institutes offer cooperative housing associations loans at a low initial interest rate, which then increases over the term of the loan.
i)  The soundness of local banks  The overseas expansion of international banks can take place through the establishment of branches and subsidiaries. I would like to concentrate on the latter since it is the prevailing legal form used by large banks, and it is also the only possibility for a foreign financial institution to establish a presence in the Mexican market.