ECCB 2016/2017 Annual Report

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ECCB ANNUAL REPORT 2016/2017

Eastern Caribbean Central Bank Notes to the Financial Statements March 31, 2017 (expressed in Eastern Caribbean dollars)

EASTERN CARIBBEAN CENTRAL BANK NOTES TO THE FINANCIAL STATEMENTS

(expressed in Eastern Caribbean dollars)

March 31, 2017

3. Financial risk management …continued 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 Money market instruments and money at call 2017 2016 Rated (Moody’s) Commercial paper and certificate of deposits $ $ Aa1 49,370,623 13,497,079 Aa2 156,867,824 80,959,857 Aa3 290,654,950 219,809,594 A1 286,400,881 107,755,426 783,294,278 422,021,956

Unrated

2017

2016

$

$

Money at call Term deposits

129,678,202 701,509,299 831,187,501

686,165,930 628,331,613 1,314,497,543

Loans and advances to participating governments Advances are based on Board approved credit allocation limits. Requests for advances by member governments are reviewed to ensure that the amounts are within the approved allocated limits. These approved limits are calculated and assigned to the governments annually. Due from local banks Advances are granted to commercial banks in accordance with Part VIII, Article 31(2) and Part IIa, Article 5B of the ECCB Agreement Act 1983. Under Part VIII, Article 31(2), the borrowing bank must pledge collateral with the Central Bank and can only borrow ninety per cent of the collateral amount pledged.