ECCB 2014-2015 Annual Report and Statement of Accounts

EASTERN CARIBBEAN CENTRAL BANK

Eastern Caribbean Central Bank Notes to Consolidated Financial Statements March 31, 2015 Eastern Caribbean Central Bank Notes t C nsolidated Fi ancial Stat ments March 31, 2015

(expressed in Eastern Caribbean dollars) (expressed in Eastern Caribbean dollars) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (expressed in Eastern Caribbean dollars) March 31, 2015

3. Financial risk management …continued b) Credit risk …c ontinued 3. Financial risk manag ment …continued b) Cred t risk …c ontinued Financial risk management …continued

3.

b) Credit risk …continued

Credit risk measurement and mitigation policies … continued Available-for-sale investment securities and money market instruments and money at call … continued The investment guidelines, which are approved by the Board of Directors, stipulate the limits on the level of credit risk by borrower, product, industry, sector and country. They also stipulate the minimum r equired ratings issued by Moody’s or another recognized rating agency for its international investments. The Bank further manages this risk by ensuring that business is only conducted with its approved banks and by monitoring those banks’ deposit ratings via rating agencies. The global custodian is also monitored daily and periodically reviewed. The table below presents an analysis of the Bank’s foreign debt securities (note 8) and money market instruments and money at call (note 5) by rating agency designation at March 31, 2015 and March 31, 2014 , based on Moody’s or equivalent: Available-for-sale securities 2015 2014 Cred t risk measur me t and mitigation policies … continued Avai able for-sale investment securities and money market instruments and money at call … continued The investment gu delines, w ich re approved by the Board of Directors, stipulate the limits on the level of credit risk y b rrowe , product, industry, sector and country. They also stipulat the mini um r equired rating issued by Moody’s or another recognized ratin agency for its international investments. The Bank further manages this risk by ensuring that business is only conducted w th its approved banks and by mon toring those banks’ deposi ratings vi rating agencies. The global custodian i als m nitored daily and per odically r viewed. The table below presents analysis of the Bank’s foreign debt securities (note 8) and money market instruments and money t call (note 5) by rating agency designation at March 31, 2015 and March 31, 2014 , based on Moody’s or equivalent: Avai able-for-sale securities 2015 2014 Credit risk measurement and mitigation policies …continued Available-for-sale investment securities and money market instruments and money at call…continued The investment guidelines, which are approved by the Board of Directors, stipulate the limits on the level of credit risk by borrower, product, industry, sector and country. They also stipulate the minimum required ratings issued by Moody’s or another recognized rating agency for its international investments. The Bank further manages this risk by ensuring that business is only conducted with its approved banks and by monitoring those banks’ deposit ratings via rating agencies. The global custodian is also monitored daily and periodically reviewed. table below presents an analysis of the Bank’s foreign debt securities (note 8) and m n y market instruments and money at call (note 5) by rating agency designation at M rch 31, 2015 and March 31, 2014, based on Moody’s or equivalent:

Rated (Moody’s) Foreign securities

Rated (Moody’s) Foreign securities

$

$

$

$

2,179,360,442 209,441,928 72,763,471 66,335,060

2,179,360,442 209,441,928 2,763,471 66,335,060

Aaa Aa1 Aa3 A1 Aa

2,105,240,347

Aaa Aa1 Aa3 A1 Aa

2,105,240,347

– – –

– – –

-

-

170,938,040 2,276,178,387

170,938,040 2,276,17 ,387

2,527,900,901

,527,90 ,901

2015

2014

2015

2014

Unrated

Unrated

$

$

$

$

421,686 421,686

421,686 421,686

Domestic securities

421,686 421,686

Domesti securities

421,686 421,686

Money market instruments and money at call Money market instruments and money t call

2015

2014

2015

2014

Rated (Moody’s) Commercial paper

Rated (Moody’s) Commerci l paper

$

$

$

$

130,909,815 107,384,937 13,498,427 251,793,179

13 ,909,815 107,384,937 13,498,427 251,793,179

A1 Aa3 Aa1

295,985,194

A1 Aa3 Aa1

2 5,985,194

- -

- -

295,985,194

2 5,985,194

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ECCB ANNUAL REPORT 2014/2015

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