ECCB 2023-2024 Annual Report

Eastern Caribbean Central Bank Notes to the Financial Statements For the year ended 31 March 2024 (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 of 31 March

2024 $

2023 $

Assets

Foreign assets Balances with other central banks Balances with foreign banks Derivative financial instruments Foreign investment securities Money market instruments and money at call

17,814,003 1,020,689 1,125,192,909

1,179,342

44,863

729,451,069

-

60,608

3,990,588,778

4,325,569,970

5,056,305,852

5,134,616,379

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

1,074,234 213,267,867 61,946,545 2,680,829

1,150,207 225,602,673 152,201,810 3,995,102

Accounts receivable

624,186

624,186

Domestic investment securities

279,593,661

383,573,978

Total on-balance sheet credit risk

5,335,899,513

5,518,190,357

The above table represents a worst-case scenario of credit risk exposure as at 31 March 2024 and 2023 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, 81.07% (2023 – 72.32%) of the total on-balance sheet exposure is derived from foreign investment securities and 13.67% (2023 – 20.39%) represents money market instruments and money at call.

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