ECCB 2016/2017 Annual Report

104

ECCB ANNUAL REPORT 2016/2017

EASTERN CARIBBEAN CENTRAL BANK NOTES TO THE FINANCIAL STATEMENTS

Total $

40 As the Bank’s investments in foreign securities are locked in at fixed interest rates, the exposure to cash flow and fair val ue interest rate risk is limited to investments in money market instruments and money at call for which rates vary with market movements. As at March 31, 2017, if interest rates were to move by 25 basis points, profit for the year would have been $4.04M (2016: $4.24M) lower or higher. The table below summarises the Bank’s exposure to interest rate risks. It includes the Bank’s financial instruments, categorised by the earlier of contractual repricing or maturity dates. As of March 31, 2017 Up to 1 month $ 1 to 3 months $ 3 months to 1 year $ 1 to 5 years $ Over 5 years $ Non-Interest bearing $ Financial assets Balances with other central banks - - - - - 11,856,639 11,856,639 Balances with foreign banks - - - - - 52,855 52,855 Money market instruments and money at call 694,903,493 497,852,670 423,590,022 - - - 1,616,346,185 Financial assets held for trading 139,184 - - - - - 139,184 Available-for-sale - foreign investment securities 79,053,402 169,485,710 506,147,477 1,621,199,608 563,625,662 - 2,939,511,859 Balances with local banks 1,838,469 - - - - - 1,838,469 Due from local banks 21,037,397 - - - - - 21,037,397 Term deposits - domestic 899,538 1,639,816 7,520,336 - - - 10,059,690 Loans and receivables - participating governments’ securities - - - 1,766,619 71,567,720 - 73,334,339 Loans and receivables - participating governments’ advances 24,623,144 - 15,873,160 - - - 40,496,304 Accounts receivable 15,391 31,124 140,057 431,557 34,000 9,370,228 10,022,357 Available-for-sale - domestic investment securities - - - - - 624,186 624,186 822,510,018 669,009,320 953,271,052 1,623,397,784 635,227,382 21,903,908 4,725,319,464

(expressed in Eastern Caribbean dollars) March 31, 2017 (expressed in Eastern Caribbean dollars) 3. Financial risk management … continued c) Market risk ...continued i) Interest rate risk… continued

Notes to the Financial Statements March 31, 2017