Annual report 2009-OK.qxp - Canadia Bank Plc.
Annual report 2009-OK.qxp - Canadia Bank Plc.
Annual report 2009-OK.qxp - Canadia Bank Plc.
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<strong>Canadia</strong> <strong>Bank</strong> <strong>Plc</strong>.31.FINANCIAL RISK MANAGEMENT (CONTINUED)31.2 Market risk (continued)c) Interest rate riskCash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuatebecause of changes in market interest rates. Fair value interest rate risk is the risk that the value of afinancial instrument will fluctuate because of changes in market interest rates. Interest margins mayincrease as a result of changes but may reduce losses in the event that unexpected movements arise. Atthis stage, the management of the <strong>Bank</strong> does not have a policy to set limits on the level of mismatch ofinterest rate repricing.The table below summarises the <strong>Bank</strong>'s exposure to interest rate risks. It includes the <strong>Bank</strong>'s financialinstruments at carrying amounts, categorised by the earlier of contractual repricing or maturity dates.Up to 1 1 to 3 1 to 12 1 to 5 Over 5 Non-interestmonth month months years years earning/bearing TotalUS$ US$ US$ US$ US$ US$ US$As at 31 December <strong>2009</strong>Financial assetsCash on hand - - - - - 35,945,109 35,945,109Balances with the NBC 44,000,000 - - - 4,054,500 150,612,790 198,667,290Balances with other banks 35,780,110 2,000,000 2,000,000 - - 42,159,145 81,939,255Loan and advances to customers 117,798,652 20,436,772 118,666,064 36,322,839 67,363,072 - 360,587,39969<strong>Annual</strong> Report <strong>2009</strong>Other assets - - - - - 12,766,493 12,766,493Total financial assets 197,578,762 22,436,772 120,666,064 36,322,839 71,417,572 241,483,537 689,905,546Financial liabilitiesDeposits from banks 24,793,095 5,514,027 3,000,000 - - - 33,307,122Due to customers 363,324,428 49,503,092 126,901,408 15,314,071 - - 555,042,999Borrowings - 213,714 213,714 2,807,187 - - 3,234,615Subordinated debt - - - - - 7,080,000 7,080,000Other liabilities - - - - - 8,213,090 8,213,090Total financial liabilities 388,117,523 55,230,833 130,115,122 18,121,258 - 15,293,090 606,877,826Total interest rate repricing gap (190,538,761) (32,794,061) (9,449,058) 18,201,581 71,417,572 226,190,447 83,027,720Million Riel equivalent(Note 2.1) (794,356) (136,718) (39,393) 75,882 297,740 942,988 346,143
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