FirstCaribbean International Bank (Bahamas) Limited

Notes to Consolidated Financial StatementsFor the year ended October 31, 2009(Expressed in thousands of Bahamian dollars)26. Financial Risk Management (Continued)G. Liquidity risk (continued)0-3 3-12 1-5 Over 5months months years years TotalOctober 31,2008 $ $ $ $ $Total assets 1,151,925 243,364 726,855 2,015,846 4,137,990Total liabilities 2,769,778 687,290 30,953 4,157 3,492,178Net on balance sheet position (1,617,853) (443,926) 695,902 2,011,689 645,812Credit commitments 67,875 234,745 – – 302,620The matching and controlled mismatching of the maturities and interest rates of assets and liabilities is fundamental tothe management of the Bank. It is unusual for banks ever to be completely matched since business transacted is oftenof uncertain term and different types. An unmatched position potentially enhances profitability, but also increases therisk of losses.The maturities of assets and liabilities and the ability to replace, at an acceptable cost, interest-bearing liabilities as theymature, are important factors in assessing the liquidity of the Bank and its exposure to changes in interest rates andexchange rates.Liquidity requirements to support calls under guarantees and standby letters of credit are considerably less than theamount of the commitment because the Bank does not generally expect the third party to draw funds under theagreement. The total outstanding contractual amount of commitments to extend credit does not necessarily representfuture cash requirements, since many of these commitments will expire or terminate without being funded.H. Fair values of financial assets and liabilitiesThe following table summarizes the carrying amounts and fair values of those financial assets and liabilities not presentedon the Bank’s consolidated balance sheet at fair value. Bid prices are used to estimate fair value of assets, whereas offerprices are applied for liabilities.Carrying valueFair value2009 2008 2009 2008Total Total Total Total$ $ $ $Financial assetsDue from banks 309,098 163,694 309,098 163,694Investment securities 580,259 776,936 580,259 776,936Loans and advancesto customers 2,541,756 2,539,072 2,631,642 2,589,367Financial liabilitiesCustomer deposits 2,985,964 3,445,010 3,045,876 3,450,40665