ECCB 2017-2018 Annual Report and Statement of Accounts

126 ECCB ANNUAL REPORT 2017/2018 Eastern Caribbean Central Bank Notes to the Financial Statements March 31, 2018 (expressed in Eastern Caribbean dollars)

EASTERN CARIBBEAN CENTRAL BANK NOTES TO THE FINANCIAL STATEMENTS

(expressed in Eastern Caribbean dollars)

March 31, 2018

3. Financial risk management …continued j) Critical accounting estimates and judgements …continued Impairment of financial assets

In determining amounts recorded for impairment losses in the financial statements, management makes judgements regarding indicators of impairment, that is, whether there are indicators that there may be a measurable decrease in the estimated future cash receivables, for example, default and adverse economic conditions. Management also makes estimates of the likely estimated future cash flows of impaired receivables as well as the timing of such cash flows. Available-for-sale securities As at March 31, 2018, the Bank held available-for-sale investment securities of $3,158,291,585 (2017: $2,940,136,045). Quoted debt securities accounted for $3,144,942,775 (2017: $2,928,601,754). The value of available-for-sale securities which were trading below cost at March 31, 2018 was $2,626,658,575 (2017: $1,968,612,259) with total unrealised losses of $51,382,332 (2017: $29,331,240). Management considers these losses temporary. Valuation of land and buildings The Bank utilises professional valuers to determine the fair value of its properties. Valuations are determined through the application of different valuation methods which are all sensitive to the underlying assumptions chosen.

4. Balances with other central banks and foreign banks

2018 $

2017 $

Balances with other central banks Balances with Regional central banks Balances with European central banks Balances with North American central banks Total balances with other central banks

5,092,749 227,742 902,597 6,223,088

10,934,252 187,916 734,471 11,856,639

Balances with foreign banks Current accounts denominated in United States dollars

64,548

52,855

Current

6,287,636

11,909,494

These balances are non-interest bearing.