Eastern Caribbean Central Bank 2024-2025 Annual Report

Eastern Caribbean Central Bank Notes to the Financial Statements For the year ended 31 March 2025 (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

2025 $

2024 $

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

1,179,342

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

44,863

729,451,069

60,608

2,762

4,325,569,970

4,814,468,816

5,416,567,116

5,056,305,852

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

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

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

Accounts receivable

624,186

624,186

Domestic investment securities

327,379,436

279,593,661

Total on-balance sheet credit risk

5,743,946,552

5,335,899,513

The above table represents a worst-case scenario of credit risk exposure as at 31 March 2025 and 2024 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, 83.82% (2024 – 81.07%) of the total on-balance sheet exposure is derived from foreign investment securities and 10.25% (2024 – 13.67%) represents money market instruments and money at call.

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