Bahamas - FirstCaribbean International Bank

Notes to the Consolidated Financial Statements
October 31, 2007
(expressed in thousands of Bahamian dollars)
3. Cash and balances with central bank
2007 2006
$ $
Cash 34,472 24,543
Deposits with The Central Bank —
non-interest bearing 82,336 44,600
Cash and balances with central bank 116,808 69,143
Less: Mandatory reserve deposits with
The Central Bank (53,269) (43,209)
Included in cash and cash equivalents
as per below 63,539 25,934
Mandatory reserve deposits with The Central Bank of The Bahamas (The Central
Bank) represent the Bank’s regulatory requirement to maintain a percentage of
deposit liabilities as cash or deposits with The Central Bank. These funds are not
available to finance the Bank’s day-to-day operations and, as such, are excluded
from cash resources to arrive at cash and cash equivalents.
Cash and balances with The Central Bank are non-interest bearing.
Cash and cash equivalents
2007 2006
$ $
Cash and balances with The Central Bank
as per above 63,539 25,934
Due from banks, included in cash and
cash equivalents (Note 4) 142,606 154,150
206,145 180,084
4. Due from banks
2007 2006
$ $
(Restated)
Due from banks 151,796 295,514
Add: Accrued interest receivable 830 2,303
152,626 297,817
Due from banks comprises deposit placements and include amounts placed with
other FirstCaribbean Bank entities of $ nil (2006 – $86) and deposit placements with
CIBC and Barclays entities of $217,008 (2006 – $230,778). The effective yield on
deposit placements during the year was 4.6% (2006 – 3.3%).
5. Derivative financial instruments
The notional and fair value amounts under these contracts at October 31 are shown
below:
October 31, 2007
Contract/
Fair Values
Notional
Amount Assets Liabilities
$ $ $
Interest rate swaps 354,578 33,223 (28,812)
Currency forwards 102,276 3,490 —
Short sales 321,585 — (2,162)
October 31, 2006
36,713 (30,974)
Interest rate swaps 654,154 1,983 (12,414)
Currency forwards 102,276 — (10)
72
See Auditors’ Report Page 56.
1,983 (12,424)
Currency forwards represent commitments to purchase foreign currency including
undelivered spot transactions. The counterparty is Canadian Imperial Bank of
Commerce-Toronto.