BBK annual report eng 21.5.5

Treasury bills and inter-bank deposits aremoney market instruments held essentially forliquidity purposes. Other assets mainly includeaccrued interest receivable, fixed assets net ofaccumulated depreciation, acquired assetspending sale, and prepaid expenses.LiabilitiesCurrent, savings and other deposits includebalances of interest-bearing and non interestbearingaccounts due to customers ondemand and term deposits taken withdifferent maturity dates, in various currenciesand at varying rates of interest. Customerdeposits increased 9.4% to BD 844.5 millionfrom BD 772.2 million at the end of 2003.Growth in stable customer deposits has beenthe thrust area for the Bank. Deposits frombanks and other financial institutions (includingborrowings from repurchase agreements)increased to BD 301.1 million from BD 291.4million, up marginally by 3.33%.Capital adequacyShareholders' equity, before appropriations,increased to BD 157.8 million at the end of2004 from BD 142.3 million at the end of2003. This has strengthened the financialposition of the Bank. With this strong capitalposition, the Bank's capital adequacy ratio atend of 2004 stood at 18.82% which is wellabove the 8% minimum required by the BasleAccord. This ratio measures total qualifyingcapital held by a bank in relation to its riskweighted assets and contingents. The BahrainMonetary Agency had increased this minimumrequirement to 12.0% with effect from 1998for locally registered banks.During the year, the Bank repaid the entireterm loans of BD 37.7 million outstanding asof last year. This funding was replaced by asuccessful medium term deposit from banksfor a similar tenor with the objective ofdiversifying sources of funds and continuallyimproving the maturity structure of the Bank’sbalance sheet. Interest payable and otherliabilities consist of accrued interest payableon interest bearing deposits, accrued expensesand provisions for contingent liabilities.1,4217658451581,3141,2151,1011,059659537499 48177265865258414213112611500 01 02 03 0400 01 02 03 0400 01 02 03 0400 01 02 03 04Total assetsBD millionLoans andadvancesBD millionCutomer depositsBD millionShareholders’equityBD millionAnnual Report 2004 20 | 21