BankVic Annual Report 2019

Note 21: Financial Instruments (continued)
On Balance Sheet Financial Instruments
i. Financial assets
Total Carrying Amount as per
Balance Sheet
2019
$’000
2018
$’000
2019
$’000
Aggregate Net
Fair Value
2018
$’000
Cash and liquid assets 54,134 47,275 54,134 47,275
Receivables 1,377 2,856 1,377 2,856
Term deposits 57,776 54,776 58,186 54,771
Certificates of deposit 83,729 94,740 84,523 94,776
Floating Rate Note 195,006 182,950 196,572 183,348
Loans and advances 1,664,567 1,441,624 1,666,042 1,441,884
Equity Investments 2,225 2,225 2,225 2,225
Total financial assets 2,058,814 1,826,446 2,063,059 1,827,135
ii. Financial liabilities
Payables 10,669 9,506 10,669 9,506
Deposits 1,850,261 1,595,735 1,851,892 1,595,737
Borrowings 13,159 44,670 13,159 44,670
Total financial liabilities 1,874,089 1,649,911 1,875,720 1,649,913
Loans and advances and deposits are disclosed at fair value using level 3 inputs using internally developed interest rates as
unobservable inputs. Interest rates are developed by using external rates plus margin.
All other financial assets are measured at amortised cost (except where otherwise stated), with fair value estimates at Level 1 or
Level 2. There have been no reclassifications from level 1, 2 or 3 in the current year.
Note 22: Financial Risk Management
The Company has exposure to the following risks from its use of financial instruments:
• Credit risk
• Liquidity risk
• Market risk
This note presents information about the Company’s exposure to each of the above risks, its objectives, policies and processes
for measuring and managing risk, and the management of capital. Further quantitative disclosures are included throughout this
financial report.
The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. The
Board has established the Audit and Risk Committees which are responsible for developing and monitoring risk management
policies. The Audit and Risk Committees report regularly to the Board of Directors on their activities.
Risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits
and a control framework, and to monitor risks and adherence to limits.
Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities.
The Company, through its training and management standards and procedures, aims to develop a disciplined and constructive control
environment in which all employees understand their roles and obligations.
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