Annual report 2008-OK-B-up.qxp - Canadia Bank Plc.
Annual report 2008-OK-B-up.qxp - Canadia Bank Plc.
Annual report 2008-OK-B-up.qxp - Canadia Bank Plc.
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NOTES TO THE FINANCIAL STATEMENTS<br />
32. FINANCIAL RISK MANAGEMENT (CONTINUED)<br />
32.2 Market risk (continued)<br />
a) Foreign exchange risk (continued)<br />
US$ Riel EUR THB Gold Other TOTAL<br />
As at 31 December 2007<br />
Assets<br />
Cash on hand 24,642,455 1,534,549 7,725 1,177,053 130,673 8,711 27,501,166<br />
Balances with the Central <strong>Bank</strong>70,669,355 387,394 - - - - 71,056,749<br />
Balances with other banks 75,948,394 4,084 1,903,474 - - 2,869,824 80,725,776<br />
Loans and advances 330,622,806 147,507 - 1,633,677 - - 332,403,990<br />
Other assets 2,626,478 - 5,744 - - 14,210 2,646,432<br />
Total financial assets 504,509,488 2,073,534 1,916,943 2,810,730 130,673 2,892,745 514,334,113<br />
Liabilities<br />
Deposits from banks 6,734,292 5,112 - - - - 6,739,404<br />
Due to customers 445,153,522 4,282,805 - 2,022,745 110,991 - 451,570,063<br />
Other liabilities 4,959,737 34,225 - - 4,323 145,381 5,143,666<br />
Borrowings 4,379,241 - - - - - 4,379,241<br />
Subordinated debt 7,080,000 - - - - - 7,080,000<br />
Total financial liabilities 468,306,792 4,322,142 - 2,022,745 115,314 145,381 474,912,374<br />
Net Balance Sheet Position 36,202,696 (2,248,608) 1,916,943 787,985 15,359 2,747,364 39,421,739<br />
In million Riel equivalent<br />
(unaudited) 144,919 (9,001) 7,674 3,154 61 10,998 157,805<br />
Credit commitments 50,722,220 - 31,776 76,072 - - 50,830,068<br />
b) Price risk<br />
The <strong>Bank</strong> is not exposed to securities price risk because it does not hold any investment held and classified<br />
on the balance sheet either as available for sale or at fair value through profit or loss. The <strong>Bank</strong> currently<br />
does not have a policy to manage its price risk.<br />
c) Interest rate risk<br />
Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate<br />
because of changes in market interest rates. Fair value interest rate risk is the risk that the value of a financial<br />
instrument will fluctuate because of changes in market interest rates. Interest margins may increase as<br />
a result of changes but may reduce losses in the event that unexpected movements arise. The management<br />
of the <strong>Bank</strong> at this stage does not have a policy to set limits on the level of mismatch of interest<br />
rate repricing that may be undertaken.<br />
64<br />
<strong>Annual</strong> Report <strong>2008</strong>
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