ECCB 2015/2016 Annual Report

EASTERN CARIBBEAN CENTRAL BANK

Eastern Caribbean Central Bank Notes to Financial Statements March 31, 2016 (expressed in Eastern Caribbean dollars) Financial risk management … continued 3. Financial risk management …continued b) Credit risk …continued b) Credit risk … continued

NOTES TO FINANCIAL STATEMENTS

(expressed in Eastern Caribbean dollars)

March 31, 2016

3.

Credit risk measurement and mitigation policies …continued Available-for-sale investment securities and money market instruments and money at call…continued Money market instruments and money at call 2016 2015 Rated (Moody’s) Commercial paper and certificate of deposits $ $ P-1 395,025,907 - A-1 26,996,049 - A1 - 130,909,815 Aa3 - 107,384,937 Aa1 - 13,498,427 422,021,956 251,793,179 Credit risk measurement and mitigation policies … continued Available-for-sale investment securities and money market instruments and money at call… continued

Unrated

2016

2015

$

$

686,165,930 628,331,613 1,314,497,543

Money at call Term deposits

660,388,697 445,261,776 1,105,650,473

Loans and advances to participating governments Advances are based on Board approved credit allocation limits. Requests for advances by governments are reviewed to ensure that the amounts are within the approved allocated limits. These approved limits are reviewed annually. Due from local banks Advances are granted to commercial banks in accordance with Part VIII, Article 31(2) and Part IIa, Article 5B of the ECCB Agreement Act 1983. Under Part VIII, Article 31(2), the borrowing bank must pledge collateral with the Central Bank and can only borrow ninety per cent of the collateral amount pledged. Loans and advances to participating governments Advances are based on Board approved credit allocation limits. Requests for advances by governments are reviewed to ensure that the a ounts are within the approved allocated li its. These approved limits are reviewed annually. fr local banks s are granted to co mercial banks in accordance with Part VIII, Article 31(2) and Part IIa, Article 5B of the ECCB Agreement Act 1983. Under Part VIII, Article 31(2), the borrowi g bank must pledge collateral with the Central Bank and can only borrow ninety per cent of the collateral amount pledged.

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ECCB A nnual R eport 2015/2016

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