ECCB 2022-2023 Annual Report and Financial Statements

Eastern Caribbean Central Bank Notes to the Financial Statements For the year ended 31 March 2023 (Expressed in Eastern Caribbean dollars)

3. Financial risk management (continued)

b) Credit risk (continued)

Maximum exposure to credit risk before collateral held or other credit enhancements

Credit risk exposure relating to on-balance sheet financial assets is as follows:

As at 31 March

2023 $

2022 $

Assets

Foreign assets Balances with other central banks Balances with foreign banks

13,482,886

17,814,003 1,020,689

692,982

780,769,312

Money market instruments and money at call

1,125,192,909

60,473

Derivative financial instruments Foreign investment securities

-

4,290,360,787

3,990,588,778

5,085,366,440

5,134,616,379

Domestic assets Cash and balances with local banks Participating governmen ts’ securities Participating governments’ advances

600,759

1,150,207

216,834,892 91,017,282

225,602,673 152,201,810

3,279,268

3,995,102

Accounts receivable

624,186

624,186

Domestic investment securities

312,356,387

383,573,978

5,397,722,827

Total on-balance sheet credit risk

5,518,190,357

The above table represents a worst-case scenario of credit risk exposure as at 31 March 2023 and 2022 without taking account of any collateral held or other credit enhancements attached.

For statement of financial position assets, the exposures set out in the above table are net of loss allowance as reported in the statement of financial position.

As depicted in the table above, 72.36% (2022 – 79.48%) of the total on-balance sheet exposure is derived from foreign investment securities and 20.39% (2022 – 14.46%) represents money market instruments and money at call.

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