As I look at your Asset-Liability structure, I note that 86 percent of your liabilities are peso deposits and 66 percent of assets are in loans. Although your universal and commercial bank peers have peso deposits at roughly the same magnitude (72 percent), U/KBs only have 47 percent of their assets in loans. This fact is material.
Most finance companies, for example, with credit ratings and debenture interest costs equal to banks are forced by today’s market to hold six or seven percentage points higher capital-to-asset ratios than those of banks. It is instructive that there are no private deposit insurers competing with the FDIC.