ECCB 2025-2026 Annual Report

Eastern Caribbean Central Bank Notes to the Financial Statements For the year ended 31 March 2026 (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

2026 $

2025 $

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

13,389,423 100,602 588,605,513

16,066,360

78,314

1,061,907,545

2,762

76,723

4,814,390,611

4,812,190,381

5,890,319,323

5,416,488,911

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

6,594,027 228,096,453 117,302,113 1,571,226

4,615,179 210,361,927 109,482,517 2,295,627

Accounts receivable

353,563,819

326,755,250

Total on-balance sheet credit risk

6,243,883,142

5,743,244,161

The above table represents a worst-case scenario of credit risk exposure as at 31 March 2026 and 2025 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, 77.07% (2025 – 83.83%) of the total on-balance sheet credit risk exposure is derived from foreign investment securities and 17.01% (2025 – 10.25%) represents money market instruments and money at call.

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