ECCB 2015/2016 Annual Report

EASTERN CARIBBEAN CENTRAL BANK

Eastern Caribbean Central Bank Notes to Financial Statements March 31, 2016 (expressed in Eastern Caribbean dollars) Financial risk management … continued 3. Financial risk management …continued b) Credit risk …continued b) Credit risk … continued

NOTES TO FINANCIAL STATEMENTS

(expressed in Eastern Caribbean dollars)

March 31, 2016

3.

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 rec ognized 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, 2016 and March 31, 2015, ba sed on Moody’s or equivalent: Available-for-sale securities 2016 2015 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 anages this risk by ensuring that business is only conducted ith its approved banks and by onitoring those banks’ deposit ratings via rating i s. l al custodian is also monitore daily and periodically revi wed. t l i f i t rities ( te ) r t instru ents and money at call (note 5) by ratin agency designation at March 31, 2016 and March 3 , 2015, based on Mo dy’s or equivalent:

Rated (Moody’s) Foreign securities

$ $

2,489,565,430 187,880,936 84,600,423 51,208,463 31,085,654 5,421,816 2,849,762,722

Aaa Aa2 Aa1 Aa3 Aaae

2,179,360,442

-

209,441,928 72,763,471

-

A1

66,335,060

2,527,900,901

2016

2015

Unrated

$

$

421,686 421,686

Domestic securities

421,686 421,686

66

ECCB A nnual R eport 2015/2016

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