Salon N-7: the room where the ALCO reviews the rate gap and the member kit lands before the Banxico presentation
Salon N-7 sits inside one of the asset-liability committee (ALCO) complexes in the banks and brokerages of the Polanco-Santa Fe corridor of Mexico City: a rectangular table seating eleven, dual screens for the rate gap and the net interest margin sensitivity, lecterns for the CRO and the treasurer, a video conferencing room linked to New York and Madrid, a holding foyer for working coffee, a dumbwaiter from the floor kitchen, and an independent access door for the bank's compliance officer. This is where the weekly ALCO sessions of the multiple banking institutions run, where the monthly risk committee meetings of the brokerages take place, where the sensitivity reports on Banxico target rate moves are reviewed, and where the liquidity committee sessions of the sofipos convene. What separates Salon N-7 from a standard risk room is the documentary order: the ALCO member kit enters before the Banxico presentation, exits signed by each member at close, and respects the sensitivity limits of the interest rate model.