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Derivative instruments and hedging activities (Policies)
 12 Months Ended
Dec. 31, 2024
Accounting Policies  
Derivatives, Offsetting Fair Value Amounts, Policy
The
 
use
 
of
 
derivatives
 
is
 
incorporated
 
as
 
part
 
of
 
the
 
Corporation’s
 
overall
 
interest
 
rate
 
risk
 
management
 
strategy
 
to
 
minimize
significant unplanned fluctuations in
 
earnings and cash flows
 
that are caused
 
by interest rate volatility.
 
The Corporation’s goal
 
is to
manage interest
 
rate sensitivity by
 
modifying the repricing
 
or maturity characteristics
 
of certain
 
balance sheet assets
 
and liabilities
so
 
that the
 
net interest
 
income is
 
not materially
 
affected
 
by movements
 
in interest
 
rates. The
 
Corporation uses
 
derivatives in
 
its
trading activities
 
to facilitate
 
customer transactions,
 
and as
 
a means
 
of risk
 
management. As
 
a result
 
of interest
 
rate fluctuations,
hedged fixed and
 
variable interest rate
 
assets and liabilities
 
will appreciate or
 
depreciate in fair
 
value. The effect
 
of this
 
unrealized
appreciation or depreciation is expected to be
 
substantially offset by the Corporation’s
 
gains or losses on the derivative instruments
that are linked to these hedged assets and liabilities. As a matter of policy,
 
the Corporation does not use highly leveraged derivative
instruments for interest rate risk management.
Pursuant to the Corporation’s accounting policy,
the
 
fair
 
value
 
of
 
derivatives
 
is
 
not
 
offset
 
with
 
the
 
fair
 
value
 
of
 
other
 
derivatives
 
held
 
with
 
the
 
same
 
counterparty
 
even
 
if
 
these
agreements allow
 
a right
 
of set-off.
 
In
 
addition,
 
the fair
 
value of
 
derivatives is
 
not offset
 
with the
 
amounts for
 
the right
 
to
 
reclaim
financial collateral or the obligation to return financial
 
collateral.