ECCB 2017-2018 Annual Report and Statement of Accounts

103

ECCB ANNUAL REPORT 2017/2018

(expressed in Eastern Caribbean dollars) Eastern Caribbean Central Bank Notes to the Financial Statements March 31, 2018 (expressed in Eastern Caribbean dollars) 3. Financial risk management …continued b) Credit risk …continued

EASTERN CARIBBEAN CENTRAL BANK NOTES TO THE FINANCIAL STATEMENTS

March 31, 2018

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 2018 2017 Rated (Moody’s) Commercial paper and certificate of deposits $ $ Aa1 25,623,069 49,370,623 Aa2 169,381,269 156,867,824 Aa3 345,700,154 290,654,950 A1 293,096,936 286,400,881 833,801,428 783,294,278

Unrated

2018

2017

$

$

Money at call Term deposits

168,020,340 504,621,782 672,642,122

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

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.