Annual report 2009-OK.qxp - Canadia Bank Plc.

Canadia Bank Plc.31.FINANCIAL RISK MANAGEMENT (CONTINUED)31.2 Market risk (continued)c) Interest rate risk (continued)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 2008Financial assetsCash on hand - - - - - 42,825,814 42,825,814Balances with the NBC - 5,500,000 - - 4,054,500 62,491,756 72,046,256Balances with other banks 27,320,602 500,000 - - 964,418 - 28,785,020Loan and advances to customers 47,919,959 35,566,358 174,425,149 54,509,065 78,181,667 - 390,602,198Other assets - - - - - 2,595,645 2,595,645Total financial assets 75,240,561 41,566,358 174,425,149 54,509,065 83,200,585 107,913,215 536,854,933Financial liabilitiesDeposits from banks 20,200,259 5,499,395 - - - 78,327 25,777,981Annual Report 200970Due to customers 265,946,946 31,316,174 96,827,502 7,500,811 - 34,770,576 436,362,009Borrowings 3,105,467 213,714 213,714 1,709,712 1,814,672 - 7,057,279Subordinated debt - - - - - 7,080,000 7,080,000Other liabilities - - - - - 5,739,735 5,739,735Total financial liabilities 289,252,672 37,029,283 97,041,216 9,210,523 1,814,672 47,668,638 482,017,004Total interest rate repricing gap (214,012,111) 4,537,075 77,383,933 45,298,542 81,385,913 60,244,577 54,837,929Million Riel equivalent(Note 2.1) (873,383) 18,516 315,804 184,863 332,136 245,857 223,79331.3 Liquidity riskLiquidity risk is the risk that the Bank is unable to meet its payment obligations associated with itsfinancial liabilities when they fall due and to replace funds when they are withdrawn. The consequence ofthis may be the failure to meet obligations to repay depositors and fulfill commitments to lend.a) Liquidity risk management processManagement monitors balance sheet liquidity and manage the concentration and profile of debtmaturities. Monitoring and reporting, taking the form of daily cash position and projection for the next day,week and month respectively, are key periods for liquidity management. In addition, management monitorsthe movement of main depositors and projection of their withdrawals.