FirstCaribbean International Bank (Bahamas) Limited

Notes to Consolidated Financial StatementsFor the year ended October 31, 2009(Expressed in thousands of Bahamian dollars)14. Other Liabilities2009 2008Accounts payable and accruals $ 7,265 $ 6,675Amount due to related parties (Note 22) 3,457 2,794Payroll liabilities 408 508Due to brokers and others 45 127$ 11,175 $ 10,104The amount due to related parties refers to balances due to other FirstCaribbean Bank entities as well as CIBC.15. Share CapitalThe Bank’s authorised capital is $20 million, comprising 150 million ordinary shares with a par value of $0.10 each and 50million preference shares also having a par value of $0.10 each. All issued ordinary shares are fully paid. No preferenceshares were issued in 2009 and 2008. At October 31, 2009 and 2008, the issued share capital was as follows:Number of shares Share par value Share premium TotalOrdinary shares, voting 120,216,204 $ 12,022 $ 465,208 $ 477,23016. Share Capital and ReservesObjectives, policies and proceduresCapital strength provides protection for depositors and creditors and allows the Bank to undertake profitable businessopportunities as they arise.The Bank’s objective is to employ a strong and efficient capital base. Capital is managed in accordance with policiesestablished by the Board of Directors (the “Board”). These policies relate to capital strength, capital mix, dividends andreturn of capital, and the unconsolidated capital adequacy of regulated entities. Each policy has associated guidelines, andcapital is monitored continuously for compliance.Each year a capital plan and three-year outlook are established, encompassing all the associated elements of capital:forecasts of sources and uses, maturities, redemptions, new issuance, corporate initiatives, and business growth. Thecapital plan is stress-tested in various ways to ensure that it is sufficiently robust under all reasonable scenarios. All of theelements of capital are monitored throughout the year, and the capital plan is adjusted as appropriate.There were no significant changes made in the objectives, policies and procedures during the year.Regulatory requirementsThe Bank’s regulatory capital requirements are determined in accordance with guidelines issued by the Central Bank.These guidelines evolve from the framework of risk-based capital standards developed by the Basel Committee, Bank ofInternational Settlement.Capital standards require that banks maintain minimum Tier 1 and Total capital ratios of 4% and 8% respectively. TheCentral Bank has established that Bahamian deposit-taking financial institutions maintain Tier 1 and Total capital ratios ofthe same respectively. During the year, the Bank has complied in full with all of our regulatory capital requirements.Regulatory capitalRegulatory capital consists of Tier 1 and Tier 2 Capital, less certain deductions. Tier 1 Capital is comprised of commonstock, retained earnings, and minority equity interest in consolidated subsidiaries, less goodwill and other deductions. Tier2 Capital principally comprises hybrid capital instruments such as subordinated debt and general provisions and 45% ofrevaluation reserves on available-for-sale securities.In 2009, both Tier 1 and Total Capital ratios were 18.85% and 19.46%, respectively (2008: 16.71% and 16.31%respectively).45