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ECCB ANNUAL REPORT 2016/2017
EASTERN CARIBBEAN CENTRAL BANK
NOTES TO THE FINANCIAL STATEMENTS
(expressed in Eastern Caribbean dollars)
March 31, 2017
Eastern Caribbean Central Bank
Notes to the Financial Statements
March 31, 2017
(expressed in Eastern Caribbean dollars)
54
3. Financial risk management
…
continued
f) Fair value
…continued
Fair Value Hierarchy
…continued
The following table presents the Bank’s financial assets
and liabilities that are measured at fair
value at March 31, 2016:
Level 1
Level 3
$
$
Financial assets
Commercial paper
381,521,788
-
Certificate of Deposits
40,500,168
-
Financial assets held for trading
245,988
-
Available-for-sale
–
foreign investment securities
2,862,778,837
-
Available-for-sale
–
domestic investment securities
-
421,686
3,285,046,781
421,686
Level 1
Level 3
$
$
Financial liabilities
Financial liabilities held for trading
6,196,019
-
g) Capital risk management
The Bank’s objectives when managing capital are:
Safeguard the Bank’s ability to continue as a going concern
Manage and safeguard the value of the Eastern Caribbean currency
Maintain a strong capital base to support its developmental activities
The Bank manages capital through the maintenance of a general reserve according to prescribed
guidelines as mandated in the ECCB Agreement Act 1983 (note 2t). As at March 31, 2017, the
general reserve was $111,106,309 (2016: $104,867,765).
h) Operational risk
Operational risk is the risk of direct or indirect loss in both financial and non-financial terms
arising from a wide variety of causes associated with the Bank’s processes, personnel, technology
and infrastructure. It may also arise from external factors other than credit, market and liquidity
risks such as those arising from legal and regulatory requirements and generally accepted
standards of corporate behaviour.
Operational risks arise from all of the Bank’s operations and
are faced by all departments.