Investor Presentation - IDB Invest's Financial Profile and Risk Management Framework

INVESTOR PRESENTATION OUR FINANCIAL PROFILE AND RISK MANAGEMENT FRAMEWORK Strong Risk Management Framework Risk Appetite Policy Concentration Limits 15% Maximum exposure to single country 20% Maximum exposure by sub sector * 5%/6% Per client & per economic group 20% Maximum exposure Equity & quasi equity Leverage Market Risk 3.0x Maximum Debt / Capital Guiding principle: match the structure of assets and liabilities: tenor, interest rate and currency risk Market risk exposures are managed with Value at Risk and DV01 limits Capital Adequacy Policy** Liquidity Policy** • • Defines minimum capital adequacy ratio (CAR) • Internal models deliver • capital requirements i.a. for credit and market risk CAR incorporates rating agencies' AA capital requirements Core metric: liquidity coverage ratio (LCR) LCR time horizon >12 months LCR time horizon and liquidity haircuts consistent with rating agency criteria Liquidity Portfolio Guidelines 4 years Maximum liquidity portfolio duration A Minimum rating required Limits are based on a concept of allocated capital except for limits per client und economic group, and Maximum Equity Exposure limit, which are based on total exposure *Except for Financial Institutions sector (60%) IDB Invest 12

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