| i) | Recognizing income and expenses |
The most significant criteria used by the Bank to recognize its revenues and expenses are summarized as follows:
| i. | Interest revenue, interest expense, and similar items |
Interest revenue and expense are recorded on an accrual basis using the effective interest method.
ii. Commissions, fees, and similar items
Fee and commission income and expenses are recognized in the Consolidated Statement of Income using criteria that vary according to their nature. The main criteria are:
| - | Fee and commission income and expenses on financial assets and liabilities are recognized when they are earned. |
| - | Those arising from transactions or services that are performed over a period of time are recognized over the life of these transactions or services. |
| - | Those relating to services provided in a single transaction are recognized when the single transaction is performed. |
iii. Loan arrangement fees
Fees that arise as a result of the origination of a loan, mainly application and analysis-related fees, are deferred and charged to the Consolidated Statement of Income over the term of the loan.