ECCB 2014-2015 Annual Report and Statement of Accounts - page 86

Eastern Caribbean Central Bank
Notes to Consolidated Financial Statements
March 31, 2015
(expressed in Eastern Caribbean dollars)
31
3. Financial risk management…continued
b) Credit risk…continued
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…continued
Unrated 2015 2014
$ $
Money at call 660,388,697 330,118,404
Term deposits 445,261,776 548,818,698
1,105,650,473 878,937,102
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.
EASTERN CARIBBEAN CENTRAL BANK
ECCB ANNUAL REPORT 2014/2015 72
3. Financial risk management…continued
b) Credit risk…continued
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…continued
Loans and advances to participating governments
Advances are based on Board approved credit allocatio limits. Requests for advances by govern ents
are r viewed to ensure that th amounts are within the approved allocated limits. These approved
limits are reviewed annually.
Due from local banks
dvances are granted to commercial banks in accordance with Part VIII, Article 31(2) and Part IIa,
Article 5B of the ECCB Agre ment Act 1983. Under Part VIII, Articl 31(2), the borrowing bank
must pledge collateral with the Central Bank and can only borrow ninety per cent of the collateral
amount pledged.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(expressed in Eastern Caribbean dollars) March 31, 2015