(Jamaica) Limited - FirstCaribbean International Bank
(Jamaica) Limited - FirstCaribbean International Bank
(Jamaica) Limited - FirstCaribbean International Bank
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notes to the Financial Statements<br />
Year Ended 31 October 2009<br />
(Expressed in <strong>Jamaica</strong>n dollars unless otherwise indicated)<br />
35. Financial Risk Management (Continued)<br />
(h) Cash flow and fair value Interest rate risk (continued)<br />
Average effective yields by the earlier of the contractual re-pricing or maturity dates:<br />
The <strong>Bank</strong><br />
2009<br />
Immediately<br />
Rate Within 3 3 to 12 1 to 5 Over 5<br />
Sensitive Months Months Years Years Total<br />
% % % % % %<br />
Cash and balances<br />
with Central <strong>Bank</strong> – 12.35 17.31 – – 8.62<br />
Due from other banks 0.11 3.42 2.24 – – 2.86<br />
Investment securities (1) – 17.21 19.30 – – 19.04<br />
Government securities<br />
under reverse<br />
repurchase agreements – 17.8 18.38 – – 17.96<br />
Loans to customers (2) 45.00 9.04 11.80 10.79 10.35 11.42<br />
Customer deposits (3) 1.92 3.32 2.24 9.73 8.60 2.08<br />
The <strong>Bank</strong><br />
2009<br />
Immediately<br />
Rate Within 3 3 to 12 1 to 5 Over 5<br />
Sensitive Months Months Years Years Total<br />
% % % % % %<br />
Cash and balances<br />
with Central <strong>Bank</strong> 9.00 8.22 19.21 – – 11.23<br />
Due from other banks – 6.60 3.03 – – 5.53<br />
Investment securities (1) – 17.35 15.54 14.88 14.63 16.80<br />
Government securities<br />
under reverse<br />
repurchase agreements – 14.57 14.75 – – 14.60<br />
Loans to customers (2) 33.29 8.21 8.13 14.69 10.33 12.87<br />
Customer deposits (3) 1.03 3.62 4.80 9.72 9.60 3.47<br />
(i)<br />
Fair value of financial instruments<br />
Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable,<br />
willing parties in an arm’s length transaction. Market price is used to determine fair value where an active market<br />
exists as it is the best evidence of the fair value of a financial instrument. However, market prices are not available<br />
for a significant number of the financial assets and liabilities held and issued by the Group. Therefore, for financial<br />
instruments where no market price is available, the fair values presented have been estimated using present value or<br />
other estimation and valuation techniques based on market conditions existing at balance sheet dates. The values<br />
derived from applying these techniques are significantly affected by the underlying assumptions used concerning<br />
both the amounts and timing of future cash flows and the discount rates.<br />
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