(Jamaica) Limited - FirstCaribbean International Bank

notes to the Financial Statements
Year Ended 31 October 2009
(Expressed in Jamaican dollars unless otherwise indicated)
19. Statutory Reserve Fund
The Group
The Bank
2009 2008 2009 2008
$’000 $’000 $’000 $’000
Balance at beginning of year 2,096,667 1,156,667 1,791,667 1,011,667
Transfer from retained earnings 50,000 940,000 – 780,000
Balance at end of the year 2,146,667 2,096,667 1,791,667 1,791,667
The fund is maintained in accordance with the Banking Act 1992, for the Bank and The Bank of Jamaica (Building
Societies) Regulations 1995, for FirstCaribbean International Building Society. These require that minimum prescribed
percentages of net income be transferred to the reserve fund until the amount in the fund is not less than paid up share
capital.
20. Retained Earnings Reserve
The Group
The Bank
2009 2008 2009 2008
$’000 $’000 $’000 $’000
Balance at beginning of year 1,776,163 1,776,163 1,640,666 1,640,666
Transfer from retained earnings 840,000 – 840,000 –
Balance at end of year 2,616,163 1,776,163 2,480,666 1,640,666
Sections 2 of the Banking Act 1992 and the Bank of Jamaica (Building Societies) Regulations 1995, permit the transfer of
any portion of net profit to a retained earnings reserve. This reserve constitutes a part of the capital base for the purpose
of determining the maximum level of deposit liabilities and lending to customers.
Transfers to the retained earnings reserve are made at the discretion of the Board; such transfers must be notified to the
Bank of Jamaica.
21. Loan Loss Reserve
The Group
The Bank
2009 2008 2009 2008
$’000 $’000 $’000 $’000
Balance at beginning of year 360,230 323,748 304,026 297,893
Transfer from retained earnings 242,659 36,482 180,234 6,133
Balance at end of the year 602,889 360,230 484,260 304,026
This is a non-distributable reserve representing the excess of the provision for loan losses determined using the Bank of
Jamaica’s regulatory requirements over the amount determined under IFRS (Note 9).
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