Eastern Caribbean Central Bank
Notes to Consolidated Financial Statements
March 31, 2015
(expressed in Eastern Caribbean dollars)
52
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 mea
sured at fair
value at March 31, 2014:
Level 1
Level 3
$
$
Financial assets
Commercial paper
295,985,184
–
Financial assets held for trading
1,388,227
–
Available-for-sale
–
foreign investment securities
2,287,942,394
–
Available-for-sale
–
domestic investment securities
–
421,686
2,585,315,805
421,686
Level 1
Level 3
$
$
Financial liabilities
Financial liabilities held for trading
4,207,943
-
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, 2015 the
general reserve was $114,891,311 (2014: $126,926,236).
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.
Eastern Caribbea Centr l Bank
N tes to Consolidated F nancial Statements
March 31, 2015
(expressed in Eastern C ribbe n dollars)
52
3. Financial risk manageme
…
continued
f) Fair value
…continued
Fair Value Hierarchy
…continued
The following table pres nts the Ba k’s fin ncial ssets and liabilities that are mea
sured at fair
value at March 31, 2014:
Level 1
Level 3
$
$
Fin ncial assets
Commercial paper
295,985,184
–
Fin ncial assets held for trading
1,388,227
–
Available-for-sal
–
foreign investment s curities
2, 87,942,394
–
Available-for-sale
–
domestic investment s curities
–
421,686
2, 85,315,805
421,686
Level 1
Level 3
$
$
Financial liabilities
Financ al liabilities held for trading
4,207,943
-
g) Capital risk management
The Bank’s objectives when managing c pital are
:
Safeguard the Bank’s ability to
continue as a g ing concern
M age and safeguard the valu of the Eastern Caribbean urrency
Maintain a strong capital base t support its dev lopmental activities
The B nk man ges capital through the maintenance of a general reserve according to prescribed
guidelines as manda ed in the ECCB Agreement Act 1983 (note 2t). As at March 31, 2015 the
general reserve was $ 14,891,3 1 (2014: $126,926,236).
h) Operat onal risk
Operational risk is the risk of direct or indirect loss in both fin cial a d non-financial terms
arising from a wide variety of causes associated with the Bank’ processes, p rsonnel, technology
and infrastruc ure. It may also arise from external facto s other than credit, market an liquidity
risks uc as those arising from legal and regulatory requirements and generally accepted
standards f corpor te behaviour. Operat onal ri ks arise fr m all of the Bank’s per tions and are
faced by ll d partments.
ECCB
ANNUAL REPORT 2014/2015
93
EASTERN CARIBBEAN CENTRAL BANK
3.
Financial risk management
…continued
f) Fair value
…continued
air Value Hierarchy
...continued
The following table presents the Bank’s financial assets and liabilities that are measured at fair value
at March 31, 2014:
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, 2015 the
general reserve was $114,891,311 (2014: $126,926,236).
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 require ents and generally accepted standar s of
orporat b h viour. Op rational risks arise from all of the Bank’s operations and are faced by all
departments.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(expressed in Eastern Caribbean dollars)
March 31, 2015
