annual report 2010 - trinidad and tobago dollar · 2017-09-05 · vi central bank of trinidad and...
TRANSCRIPT
ANNUALREPORT
2010
The primary purpose of the
Bank is the promotion
of monetary, credit and
exchange conditions
most favourable to the
development of the economy
of Trinidad and Tobago.
Our Purpose
Central Bank of Trinidad and Tobago Annual Report 2010 | 1
| Central Bank of Trinidad and Tobago Annual Report 2010 2
Central Bank of Trinidad and Tobago Annual Report 2010 | 3
Photo CreditsLloyd PierreDovelyn Richmond
The cover image depicts the lighted panels found on the ground floor of the Central Bank of Trinidad and Tobago
The photos that represent the separator pages in the Annual Report are external shots of the Central Bank of Trinidad and Tobago at different angles.
Central Bank of Trinidad and Tobago Annual Report 2010 | i
Letter of Transmittal
December 31, 2010
The Honourable Winston DookeranMinister of FinanceMinistry of FinanceEric Williams Finance BuildingIndependence SquarePORT OF SPAIN REF: CB-G: 177/10
Dear Minister Dookeran
In accordance with Section 53(1) of the Central Bank Act Chap.79:02,
I enclose herewith the Report of the Central Bank of Trinidad and Tobago
for the year ended September 30, 2010, together with a copy of the Annual
Audited Statement of Accounts certified by the Auditors.
Yours sincerely,
Ewart S. Williams
Encls.
Ewart S. WilliamsGovernor
Central Bank of Trinidad and Tobago Annual Report 2010 | iii
Page
Governor’s Foreword (v)
Board of Directors (vii)
Senior Management (viii)
Managers and Departmental Heads (x)
Assistant Managers (x)
Review of Activities 2009-2010
•Highlights 1
•EconomicDevelopments 1
•FinancialSystemSurveillance 3
•PaymentsSystemOversight 5
•BankingOperations 5
•ForeignExchangeMarketOperations 10
•ForeignReservesManagement 10
•Research,InformationandKnowledgeServices 11
•NationalFinancialLiteracyProgramme 12
•OutreachProgrammes 12
•HumanResources 14
•RiskManagement 15
Financial Statements
•ReportoftheAuditorGeneral 19
•ConsolidatedFinancialStatements
•NotestotheConsolidatedFinancialStatements
Appendices
TableA.1 –CurrencyinCirculation,2007–2010
TableA.2 –CentralBankStatementofLiabilitiesandAssets,2009-2010
TableA.3–CommercialBanks:AverageDepositLiabilities,RequiredCashReservesand
ActualCashReservesforPeriodEndingSeptember30,2010
TableA.4–Non-BankFinancialInstitutions:AverageDepositLiabilities,RequiredCash
ReservesandActualCashReservesforPeriodEndingSeptember30,2010
ChartsandTables
ChartI - CurrencyinCirculation
ChartII - VolumeofNotesinCirculationByDenomination2009/2010
ChartIII - VolumeofCoinsinCirculationByDenomination2009/2010
ChartIV - RTGSAnnualVolumes
ChartV - PurchasesandSalesofForeignExchangeOctober2008-September2010
Table of Contents
Central Bank of Trinidad and Tobago Annual Report 2010 | v
TrinidadandTobagowentthroughachallengingyearin2010.Whilethemarkeddeclineineconomicactivityregisteredinthepreviousyearwashalted,therecoveryineconomicgrowthwasmuchweaker thanoriginallyenvisaged. The lukewarm economic performance in2010wasmainly due to lower than expected publicand private sector investment, lackluster demand fornon-energy exports from the CARICOM region andexceptionally subdued consumer demand, related inpart to an increase in unemployment, mainly in theconstructionandservicessectors.
Tocompoundthesluggisheconomicactivity,headlineinflation which fell to record low levels in 2009,accelerated to double-digits in 2010. The surgewas
however, due almost entirely to a weather-inducedreductionindomesticagriculturaloutput.Coreinflationhoveredbetween4and5percent.
Theurgentneedtofosteracredibleeconomicrecoverywhile reducing inflation to acceptable levels hascreated challenges for economic policy-making. Thegovernment’sbudgetforFY2011hasadoptedapolicystance that focuses on the provision of incentives tostimulateprivatesectoractivityandtheimplementationof a large public sector investment programme thatemphasizesinfrastructuralprojects.Whiletheprojecteddeficitwillimplyasizeableincreaseinborrowing,publicdebt is still expected to remain within manageablelevels.
Governor’s Foreword
“The urgent need to foster a credible economic recovery while reducing inflation to acceptable levels has created challenges for economic policy-making.”
Ewart S. Williams
Chairman of the Board and Governor
| Central Bank of Trinidad and Tobago Annual Report 2010 vi
Governor’s Foreword
Forthepastyear,monetarypolicyhassoughttoprovidesupportforanincreaseinprivatesectoractivity.However,successhassofarbeenlimited.Whilereductionsinthepolicyinterestratehaveledtoadeclineincommercialbankinterestrates,thefallinlendingrateshasnotservedtoincreaseloandemand.Rather,financialsavingshavecontinuedtoincreaseatarapidpaceleavingbankswithsignificantexcessliquidity.
Conditionsareripeforafirmerrecoveryin2011.Thebrighteroutlookfortheglobaleconomyshouldbenefittheenergysectorthroughhigherpricesandincreaseddemandforpetrochemicals.Progressintheresolutionoforganizationalproblemsby thenewadministrationpromises to pave the way for accelerated policyimplementation. This in turn will go a long way tostimulatingprivateconsumptionandinvestment. TheCentralBank’sbasecasescenarioisforanincreaseinGDPofaround1-2percentin2011,whichshouldatleastleadtoadecline,albeitsmall,inunemployment.Giventheexistenceofamplesparecapacityandwithdomesticagriculturalpricesalready returning tomorenormal levels, headline inflation should recede toaround7percent.
TheCentralBankwillneedtoplayanimportantroleintherecoveryeffort.Itschallengewillbetosupporttheincreaseineconomicactivitythroughfurtherreductionsin interest rates, while keeping a close eye for anyresurgenceofinflationarypressures.TheBankalsohasanambitiousagendagearedtowardsmaintainingfinancialstabilityandenhancingthefinancialinfrastructurethatgovernsthenon-banksystem.
GovernorEwartS.Williams
Board of Directors
Ewart S. WilliamsChairman of the BoardGovernor
Ms. Joan JohnExecutive DirectorDeputy Governor
Dr. Shelton NichollsExecutive DirectorDeputy Governor
Ms. Alison LewisDate of Appointment:November 29, 2007Public Service DirectorPermanent Secretary,Ministry of Finance
Ms. BarbaraChatoorDate of Appointment:July 19, 2009Ordinary DirectorB.A., National Universityof IrelandDiploma in Education,UWI, St. Augustine
Ms. AmeliaCarrington S.C.Date of Appointment:April 11, 2009Ordinary DirectorAttorney-at-Law
Mr. Norris CampbellDate of Appointment:July 8, 2007Ordinary DirectorChartered AccountantB.Sc. FCCA.
Mr. Carlyle GreavesDate of Appointment:April 11, 2009Ordinary DirectorM.A. DevelopmentEconomicsM.A. Latin AmericanDevelopment Studies
Prof. Selwyn CudjoeDate of Appointment:April 11, 2009Ordinary DirectorPh.D. American Studies
Central Bank of Trinidad and Tobago Annual Report 2010 | vii
Senior Management
Ewart S. WilliamsChairmanoftheBoardGovernor
Ms. Joan JohnExecutive DirectorDeputy Governor
Dr. Shelton NichollsExecutive DirectorDeputy Governor
Mr. Carl HiralalInspector of Financial Institutions
Mr. Alister NoelSenior ManagerOperations
Ms. Wendy Ho SingDeputy InspectorFinancial Institutions
Mrs. Jennifer GreavesSenior ManagerInformation Technology Services andThe National Financial Literacy Programme
Mrs. Nicole CrooksSenior ManagerHuman Resourceand Corporate Services
| Central Bank of Trinidad and Tobago Annual Report 2010 viii
Senior Management
Mr. Patrick SolomonSenior ManagerRisk Management and Corporate Governance
Ms. Marie BorelyFinancial Controller
Dr. Alvin HilaireChief Economist andDirector of Research
Central Bank of Trinidad and Tobago Annual Report 2010 | ix
Managers andDepartmental Heads
Dr. Penelope FordeAdvisor to the Governor
Mrs. Elizabeth AustinManager, National Financial Literacy Programme
Ms. SharonBraithwaiteManager, Insurance and Pensions Unit, FISD
Ms. NicoleChapmanManager, Legal andCorporateSecretariatServices
Ms. Wendy D’ArbasieManager, Domestic Market Operations
Mrs. Joycelyn OpadeyiManager,Procurement and Support Services
Mrs. Zoraida DookieManager,InformationTechnologyServices
| Central Bank of Trinidad and Tobago Annual Report 2010 x
Mrs. MichelleFrancis-PantorManager, Policy and Market Conduct
Managers andDepartmental Heads
Ms. Suzanne RoachManager, Internal Audit
Mr. Lester ShimManager, ReserveManagement
Mrs. HeatherHugginsManager, Human Resources
Mr. Carl StewartManager, Credit Unions, FISD
Mr. Richard RossChief Engineer,Facilities Services
Ms. Janice WoodsManager, BankingOperations
Mrs. June StewartManager, Knowledge and Information Management
Central Bank of Trinidad and Tobago Annual Report 2010 | xi
Assistant Managers
Mr. Victor MaloneyAssistant Manager, Corporate Communications
Ms. Sharon VillafanaPayments System Co-ordinator, Payments System
Dr. Earl BoodooAssistant Manager, Research
Ms. SherizaHassan-AliAssistant Manager, InformationTechnology Services
Mr. Garnett SamuelAssistant Manager, Research
Mr. Gaston HarrisonAssistant Manager, Human Resources
Mr. RichardFrederickSecurity Operations Officer
| Central Bank of Trinidad and Tobago Annual Report 2010 xii
Mrs. DeniseRodriguez-ArchieAssistant Manager Internal Audit
Central Bank of Trinidad and Tobago Annual Report 2010 | xiii
Assistant Managers
Specialist Staff
Mr. Adrian SaundersAssistant Manager, Market Conduct, FISD
Mr. Anthony RobertsChief Actuary, FISD
Mr. Roland YorkeAssistant Manager, Banks and Non-Banks, FISD
Mrs. Jacinta SohunInsurance Advisor,FISD
Ms. KavitaSurat-SinghAdvisor, FISD
| Central Bank of Trinidad and Tobago Annual Report 2010 xiv
Organizational Structure - As at September 2010
Governor
Deputy GovernorOperations
Deputy GovernorResearchandPolicy
Inspector of Financial Institutions
Financial Services Ombudsman
Manager LegalandCorporateSecretariat Services
Senior Manager
RiskManagement
Financial Controller
Senior ManagerOperations
Chief Economistand Director of
Research
Deputy Inspector ofFinancial Institutions
Senior ManagerHumanResourceandCorporateServices
HumanResources
CorporateCommunications
ProcurementandSupportServices
Facilities
Banks&Non-Banks
CreditUnions
InsuranceandPensions
Policy&MarketConduct
ResearchDomestic Market
Operations
ReserveManagement
BankingOperations
KnowledgeandInformation
Management
InformationTechnologyServices
NationalFinancialLiteracyProgramme
PaymentsSystem
Finance andAccounting
RiskManagement
InternalAudit
Security
Central Bank of Trinidad and Tobago Annual Report 2010 | xv
Review of Activities2009-2010
| Central Bank of Trinidad and Tobago Annual Report 2010 xvi
Review of Activities2009-2010
Central Bank of Trinidad and Tobago Annual Report 2010 | 1
Review of Activities 2009-2010
HIGHLIGHTS
Ledbystrongperformancesinlargeemergingmarketcountries,aglobaleconomicrecoverystartedtotakeholdin2009/2010.PersistentlyhighunemploymentintheUSaswellasbankingcrisesinEuropebroughtto the fore themajor ongoing challenges for fiscalpolicyandsovereigndebtsustainability. InTrinidadand Tobago, the economic recovery has remainedweakwhilesupplyshockspushedheadlineinflationinto double digits. The highlights of the Bank’sactivitiesduringthefinancialyearincluded:
• The implementation of an accommodative monetarypolicy stance involving successive reductions of thereporatetoitslowesthistoricallevelinordertosupportanexpansionofprivatesectoractivity.
• The Bank continued to work on strengthening thelegislative and regulatory framework of the financialsystem. Adraft InsuranceBill andRegulations and adraftCreditUnionBillwerecompleted.AdraftPolicyProposalforanewOccupationalPensionsActwasalsocirculatedtostakeholders.
• The Bank made significant progress in enhancingfinancial sector supervision. During the year, twoPrudentialGuidelineswereissued;adraftConsolidatedSupervisionFrameworkwascompleted;andstresstestsforthecommercialbankswereprepared.
• In April 2010, an application for leave to wind-upCLICO Investment Bank and appoint the DepositInsurance Corporation as Liquidator was filed and iscurrentlybeforetheCourt.
• The Central Bank suspended theMotor andGeneralInsurance Company Limited (MAGIC) commencingJune15,2010andanapplicationforleavetowind-upthecompanywasfiledonSeptember27,2010.
• AFinancialStabilityModuleundertheFinancialSectorAssessment Programme (FSAP) was conducted bythe International Monetary Fund (IMF) in October/November2010.TheIMFconcludedthatthebankingsystem has shown resilience in the face of ongoingchallenges and that Trinidad and Tobago has madesignificant progress in strengthening the regulatoryframework for the insurance industry since the 2005FSAP.
• The Central Bank of Trinidad and Tobago ResearchPaperspublication,anewjournalwaslaunchedwhilenew statistical series, includinganEnergyCommodityPrice Index and a Capacity Utilization Index, weredevelopedandpublished.
• TheNationalFinancialLiteracyProgrammecompletedtheplannedexpositions(“TraintheTrainer”)forownersand operators of small and micro enterprises.
• The Bank successfully negotiated two new CollectiveAgreementsfortheperiod2009-2011withtheunions
representingitsemployees.
ECONOMICDEVELOPMENTSInternational Economic Environment
Following a turbulent 2009, the internationaleconomyreboundedin2010,supportedinlargepartbycoordinated fiscal stimuluspackagesparticularlyin the advancedeconomies. Developed countriesexperiencedweakrecoveryassluggishemploymentgrowth, accompanied by ballooning fiscal deficits,retarded the pace of economic resurgence. Theglobal recovery was driven by vibrant activity inemergingmarket anddeveloping economies,mostnotablyChinaandIndia,aswellasinLatinAmerica.
During2010,theeconomicperformanceofadvancedeconomies,particularlytheUnitedStates(US)andintheEuroArea,wastepidatbest.Joblessgrowthkeptconsumer confidence subdued and a revitalizationof private investment remained elusive. In thiscontext,therewerefearsofa“doubledip”recession,but economic indicators continued to point to asteady,albeitunspectacular,recovery.Facilitatedbya benign inflationary environment, theUS FederalReservecontinueditspolicyofquantitativeeasinginorder to provide further stimulus geared especiallyat employment creation. In contrast, the UnitedKingdom, having returned to positive economicgrowth,embarkedonaseriesofausteritymeasuresaimedatrestoringpublicdebttosustainablelevels.
Theexport-ledrecovery in theEuroareahasbeenunevenwithtwomemberstatesestimatedtocontractagainin2011.Sovereigndebtproblemsfacedbysome countries in 2010 have shaken confidenceacrossthecontinent,buttheimmediateimpactshavebeencontainedbysupportfromEurozonecountriesandtheInternationalMonetaryFund(IMF).
SeveralofthelargerLatinAmericaneconomies,such
| Central Bank of Trinidad and Tobago Annual Report 2010 2
asBrazil,ArgentinaandMexico,postedrobustgrowthin2010,basedonbroad-basedrecoveriesindomesticdemand and investment. In Central America, therecoverywasmoremoderate.TheCaribbeanregiondid not fare as well. After a sharp contraction in2009,thehopesofaquickreboundweredispelledasitbecameevidentthatanimprovementintouristarrivalsandremittanceswouldbeslow.Heavydebtburdens, lackoffiscalspaceandtheoccurrenceofseveral natural disasters forced several countries torelymoreheavilyoninternationalfinancialsupport,includingfromtheIMF,whiletakingcomprehensivemeasurestostrengthentheirfiscalpositions.
Domestic Economy
In Trinidad and Tobago, therewere tentative signsofarecoveryin2009/2010.Afterfourconsecutivequarters of decline, the economy showed positivegrowthrangingfrom0.8percentto1.9percentinthreeof the fourquartersof the financialyear, ledby the energy sector. Soft domestic and regionaldemand and a sharp slowdown in governmentprojects continued to affect non-energy activities,including manufacturing, construction, agricultureanddistribution.
The protracted declines in the non-energy sectorprecipitated substantial job losses and led to anincreaseintheunemploymentratetoanaverage5.8percentinthefirstandsecondquartersof2010from5.1percent,ayearearlier.Duringthisperiod,thenumberofpersonsemployedfellby19,200persons.Theconstructionsectorshedthemostjobs(15,400),while the transport, storage and communicationssectorlost4,200positions.
Preliminaryestimatesindicatedthatthegovernment’sfiscaldeficitmeasured0.2percentofGDPforthefiscalyearendingSeptember30,2010comparedtothe5.4percentdeficitthatwasbudgeted.Mainlyresponsible for this outturn was the higher thananticipated oil prices which boosted revenues.Overall, the fiscal impulseneeded to stimulate theeconomywassomewhatweakerthanprojected,in
partduetoaslowdownincapitalspendingfollowingthe general election ofMarch 2010. Total publicsector debt which comprises central governmentdebt and contingent liabilities (excluding bills andnotes issued for open market operations) rose to37.3percentofGDPat theendof the fiscalyearfrom33.0percentayearearlier.
Available data show that for the financial year2009/2010, the current account of the balance ofpayments recorded a surplus of US$2.1 billion,compared to US$3.9 billion in the previous year,2008/2009. Bothexportsand importswere lowerthaninthepreviousyear.The16percentdeclinein exports was largely due to a fall in the volumeofenergysectorproducts,whilenon-oilimportsfellbecause of sluggish domestic demand. Togetherwith reduction in capital outflows, a lower currentaccount surplus led toa smalleroverallbalanceofpayments surplus of US$ 151.4million comparedwithaUS$214.1millioninthe2008/2009financialyear.BytheendofSeptember2010,grossofficialreservesamountedtoUS$9,086.4million,equivalentto13.1monthsofprospectiveimports.
Monetary Policy
Overthecourseofcalendar2009,headlineinflationdeclinedprogressively,reachingalowof1.3percent(year-on-year) in December. However, subsequentsupply disruptions in the agriculture sector in thewakeofextremeweatherconditionsdroveupfoodprices,forcingheadlineinflationtopeakat16.2percentinAugust2010beforeslippingto13.2percentin September and12.5per cent inOctober. In acontinuationofitsaccommodativepolicyadoptedattheendofthe2008/2009financialyear,theCentralBank reduced the repo rate on three occasionsbetweenOctober2009andJanuary2010toalevelof 5.00 per cent. As inflation started to rise, theBankleftthepolicyrateunchangedoverthenextsixmonths.However,withwidespreadevidenceoflowdomestic business confidence, considerable sparecapacityandstablecoreinflation,theBankresumeditspolicyofreporatereductions,loweringitonfour
Central Bank of Trinidad and Tobago Annual Report 2010 | 3
occasionsto3.75percentbyNovember.
Despite the reductions in the repo rate andcommercial bank lending rates, there was littlerecoveryinthedemandforcreditinanenvironmentof weak business and consumer confidence.From late 2009, the value of loans outstanding tobusinesses by the consolidated financial systemsteadily contracted, recording a 12-month declineof 6.8 per cent by September 2010. Consumerloans outstanding also declined, but at a lesspronounced rate.Meanwhile, real estatemortgageloanscontinuedtogrow,recordinganincreaseof8.4percent inSeptember2010 fromayearearlierasborrowers tookadvantageof softerpropertypricesand a drop in mortgage rates.
Weak loan demand alongwith limited investmentopportunities led to a build-up of liquidity in thefinancialsystem.Todealwiththeliquidityoverhang,the Central Bank requested commercial banksto deposit a total of $2 billion in interest-bearingaccounts at theBank inNovember2009. Half ofthisamountwasdepositedforoneyear(eventuallyrolledoverforanotheryearonmaturityinNovember2010)andthebalanceforeighteenmonths.Another“special” deposit of $1 billion was requested inNovember 2010. Central Bank’s sales of foreignexchange to themarket (US$1,495million for theyearendingSeptember2010)alsohelpedtomopupsomeliquidityfromthesystem.
In the face of these conditions, short-term interestrates continued to soften. Increased demand forgovernment short-term securities pushed the 3-month treasury bill rate down to 0.34 per cent inSeptember2010from1.85percentayearearlier.
FINANCIALSYSTEMSURVEILLANCESupervision of Licensed and Registered Financial Institutions and Pension Plans
During the year, the Central Bank continuedto upgrade and tighten the supervisory andregulatory framework in order to ensure a stableand sound financial system with the capacity to
withstand domestic and external shocks. On-siteexaminationsandoff-sitemonitoringofthebankingsector,insurancecompaniesandpensionplanswereconducted.On-siteexaminationsofeightlicensedfinancialinstitutionswithinthebankingsectorwerecompleted and focused on risk management andgovernance practices, loan underwriting and anti-money laundering/counter-terrorism financing.Compliance directions, pursuant to the FinancialInstitutionsAct(2008),wereissuedtoonenon-bankfinancialinstitution.
Overall, the banking sector remained stable, withthe aggregate capital adequacy ratio averaging justabove20percent,wellinexcessofthe8percentstatutoryminimum. However, therewas a rise innon-performing loans from 1.97 per cent to 4.65per cent drivenmainly by financing of real estateprojects. As a result, thebanking sector increasedloanlossprovisionsby47.5percentandaggregateprofitbeforetaxdeclinedonayear-on-yearbasisby14.7percent.
With respect to the insurance industry, on-siteexaminationsofthreelifecompaniesandonenon-life insurer were completed. These examinationsfocusedonrelatedpartytransactions,therobustnessof the institutions’ anti-money laundering regimesand corporate governance. Some institutionaldevelopmentsintheinsurancesectorincluded:-
• ThecancellationoftheregistrationofRoyalCaribbeanInsuranceLimitedfollowingthetransferofitsportfoliotoGuardianGeneralInsuranceLimited.
• American Life and General Insurance Company(TrinidadandTobago)Limited(ALGICO)ceasedwritinggeneral insurancebusinesseffectiveMay1,2010andthatbusinesswillberun-offovertheperiodJuly2010toJune2011.MetLifeInc.wasappointedcontrollerofthecompanyinOctober2010.
On-siteexaminationsofpensionplanswerelimitedto thecontinuationof thematic reviewsofpensionplans’ investments.
Enhancing Supervision
Review of Activities 2009-2010
| Central Bank of Trinidad and Tobago Annual Report 2010 4
Considerable effort was made to refine thesupervisory frameworks governing thebankingandinsurance sectors. Some of the more importantmeasures included increased focus on credit risk;strengthened levels of cooperation with regionalandinternationalcounterparts; the issuanceof twoPrudential Guidelines (for reporting of large creditexposures and consolidated prudential reporting);thecompletionofadraftConsolidatedSupervisionFramework; and the enhancing of supervisoryexpertise.
The Central Bank continued to contribute to thedevelopment of robust anti-money laundering(AML) and combating of financing of terrorism(CFT) frameworks forTrinidadandTobago throughits representation on the National AML/CFTCommitteeandatCaribbeanFinancialActionTaskForce (CFATF)meetings. Inaddition, theFinancialObligations Regulations which named the CentralBankasaSupervisoryAuthority for the institutionsthatitregulateswereputintoeffectinJanuary2010.Other Supervisory Authorities include the TrinidadandTobagoSecuritiesandExchangeCommissionforsecurities companies and the Financial IntelligenceUnit for listed businesses (for example, jewelers,real estate, casinos). The Financial IntelligenceUnit Actwas passed inOctober 2009 and its aimistheimplementationoftheanti-moneylaunderingpoliciesoftheFinancialActionTaskForce.
Enforcement Actions
CLICOInvestmentBank(CIB),ColonialLifeInsuranceCompany Limited (CLICO) and British American(BA), remained under the control of the CentralBankduringthefinancialyear.InfurtheranceofitsmandateunderSection44DoftheCentralBankAct,theBankworkedwithCLICOtoeffectareductionofoperatingcostsandformulateastrategicplan.TheBank also collaboratedwith theGovernment on anumber of options for restructuring the companyandmanagingpolicy-holderexpectations,aimedatmaintainingfinancialstability.IntheGovernment’s2010/11budget,itwasannouncedthattherewouldbe a restructuring plan that would separate the
traditional insurance liabilities from the short-terminvestment products. With respect to the latter,all investors would be paid up to a threshold ofTT$75,000 with the remaining claim on principalrestructuredover20years.Paymentsunderthisplanareexpectedtobegininearly2011.InApril2010,anapplicationforleavetowind-upCIBandappointtheDepositInsuranceCorporationasLiquidatorwasfiled.ThispetitioniscurrentlybeforetheCourt.Inotherdevelopments,theBoardoftheCentralBankapprovedthesuspensionoftheMotorandGeneralInsuranceCompanyLimited(MAGIC)commencingJune15,2010;anapplicationforleavetowind-upthecompanywasfiledonSeptember27,2010.
Strengthening the Legislative and Regulatory Framework
The Central Bank continued to collaborate withthevarious stakeholders in thebanking, insurance,pensions, and credit union sectors to develop theappropriate legislative, regulatory and supervisoryframeworks.Thekeymilestonesachievedincluded:(i) the completion of the draft Insurance Bill andRegulations, including the draft Capital AdequacyRegulationsandCaribbeanPolicyPremiumMethodforvaluationofinsuranceliabilities;(ii)thedraftingofaCreditUnionBill,whichwassubmittedtotheOfficeof theChief ParliamentaryCounsel for review; (iii)thecirculationofadraftPolicyProposalDocumentfor a new Occupational Pensions Act; (iv) thecompletionofthedraftRegulationsforthePaymentofSupervisoryFeesandChargesbyregulatedfinancialinstitutionsandpersons,whichhavebeensubmittedforMinisterialapproval;(v)thecompletionofadraftConsolidated Supervision Framework to effect theconsolidated supervision of financial groups andfinancialholdingcompanies;and(vi)thecompletionof a draft National Crisis Management Plan anddraftRegionalCrisisManagementPolicytoinformaRegionalCrisisManagementPlan.
Central Bank of Trinidad and Tobago Annual Report 2010 | 5
Financial Sector Assessment Programme 2010
A Financial Stability Module (FSM) under theFinancialSectorAssessmentProgramme(FSAP)wasconductedbyanIMFmissioninOctober/November2010. The mission assessed the broader risks andvulnerabilities in the financial system of Trinidadand Tobago. They concluded that the bankingsystemhasshownresilienceinthefaceoftheglobalfinancial crisis, the slowdownof economic activity,anddifficultiesassociatedwithCLICO.Thebankingsystem was judged to be well capitalized withconservative lending practices. In addition, stresstests showed thateven in the faceofdeteriorationinmacroeconomicconditions, thebankswouldbeabletoabsorbtheassociatedprovisioningcostsdueto their ample capital buffer. Areas thatwarrantedfurtherenhancementwere the full implementationofconsolidatedsupervisionandtheintroductionofstandardsforoperational,liquidityandinterestraterisks.
With respect to the insurance sector, the IMFconcluded that Trinidad and Tobago has madeconsiderableprogressinstrengtheningtheregulatoryframework since the 2005 FSAP. The IMF alsoacknowledged that thenew InsuranceBill drafted,following extensive consultationswith the industry,would serve to modernize the legislation for thesector.TheIMFstatedthatthelargerlifeandgeneralinsurancecompaniesweregenerallyprofitableandadequately capitalized. As a result they are betterpositioned to adapt to the changing regulatoryenvironment.
The IMF indicated in their report that “TrinidadandTobagohastakenactiontostrengthenitscrisispreparedness framework in recent years and hasadopted some of the post-financial crisis reforminitiativesunderdiscussionininternationalbodies.”
PAYMENTSSYSTEMOVERSIGHT
InaccordancewiththerequirementsoftheFinancialInstitution Act, 2008 (FIA), the two major retailpayment systems, LINX, operated by InfoLinkServicesLimitedandtheAutomatedClearingHouse
(Transach), operated by the Trinidad and TobagoInterbank Payment System Limited (TTIPS), madeapplications to the Bank for Interbank PaymentSystemOperator Licences. During the year, thesetwo systems were issued with interim licencespendingthecompletionoftheevaluationprocess.
TheBankcompletedaninitialoversightassessmentof all Systemically Important Payment Systems(SIPS)andprovidedgeneral recommendationsandfeedbackontheircompliancewithinternationalbestpractices.
The volume of large value transactions beingprocessed through the RTGS continued to growthoughata slower rate than thepreviousyear. In2009/2010, transaction volume rose by 2.6 percentcomparedwithan increaseof8.6percent in2008/2009. This year’s movement neverthelessrepresented a 3 per cent decline in the value ofthese payments; therefore the average value of atransaction settled over the RTGS declined. In itseffort to improve the efficiency of the nationalpayment system, the Bank continued efforts todissuadeuseof large-value cheques. Thenumberoflargevaluechequesdecreasedonlymarginallyintheyear;however,withtheimminentrevisiontotheExchequer andAudit Actwhich stipulates that theGovernment must make payment by cheque, thisvolumeisexpectedtoshowasubstantialdecline.
There was also a general increase in the use ofelectronic payment options (ACH, Debit andCreditcard)asopposedtopaper-basedinstruments(cheques) for retail transactions. In 2009/2010,electronic payments accounted for 77 per cent ofthevolumeofretailnon-cashpaymentsclearedandsettledontheinterbankmarket,anincreaseof7percentover2008/2009.
BANKINGOPERATIONSCurrency in Circulation
Currency in circulation increased by 9.7 per centto$4,729millionoverfiscalyear2009/2010.This
Review of Activities 2009-2010
| Central Bank of Trinidad and Tobago Annual Report 2010 6
isequivalent to5.2percentofGDP,compared to3.2 per cent a year earlier. The customary trendwhereby the demand for currency peaks duringthe month of December, declines sharply in thefollowingmonth,andthengrowsmoderatelytoyearend,againcontinued.(SeeChartI).
Duringtheyear,theBankissuedatotalof65millionnewbanknotes,2percentmorethaninthepreviousyear. This growth was largely due to the higherdemand for $100 notes to service ATMs. Therewasalsoanincreaseof3percentinthevolumeofnotesreissuedfromtheamountinthepreviousyear.The$1denominationcontinuedtoaccountforthelargestshare(47percent)ofallnotesissued,whilethe1centremainedthemostwidelycirculatedcoin,representingapproximately51percentofthetotalvolumeofcoinsincirculation.ChartsIIandIIIshowtherelativeshareofeachdenominationofnotesandcoins, respectively, in circulation as at the end ofSeptember 2010.
Clearing and Settlement Systems
The Bank continued to maintain a ChequeClearinghouse facility in conjunction with thecommercialbanks,andaRealTimeGrossSettlement(RTGS) System, Safe-tt, for large value and time-criticalpayments.
Cheques
In 2009/2010, cheques cleared through theClearinghouse facility decreasedby14per cent intermsofvolumebutonly2percentinvalueterms.The cheques clearedon theBank itself during theyearalsodecreased,fallingby7.2percentinvolumetermsand15percentintermsofvalue.ThiswasincontrasttothepreviousyearwhenthevolumesandvaluesofchequesdrawnontheBankhadrisenby6percentand10percent,respectively.
Electronic Payments
The volumeof transactions settledover theRTGS,Safe-tt,continuedtogrow,thoughmoreslowlythan
CHART ICURRENCY IN CIRCULATION
0
1,000
2,000
3,000
4,000
5,000
6,000
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
TT$
Mill
ions
2005/2006
2006/2007
2007/2008
2008/2009
2009/2010
Central Bank of Trinidad and Tobago Annual Report 2010 | 7
Review of Activities 2009-2010
CHART IIVOLUME OF NOTES IN CIRCULATIONBY DENOMINATION 2009/2010
CHART IIIVOLUME OF COINS IN CIRCULATIONBY DENOMINATION 2009/2010
47%
8%
6%11%
28%
$1 $5 $10 $20 $50 $100
51%
15%
17%
17%
0.36%
1¢ 5¢ 10¢ 25¢ 50¢ $1
| Central Bank of Trinidad and Tobago Annual Report 2010 8
inthepreviousyear.Thetotalvolumeoftransactions,at 47,043 in the year, represented an increase of2.5percentover theamount in thepreviousyear(seeChartIV).However,invalueterms,therewasadecreaseof3percent fromthepreviousyearto$395billion.
Financial Institutions Deposits
The statutory reserve requirement for commercialbanksandnon-bankfinancial institutionsremainedunchangedat17percentand9percent,respectively,during2009/2010.However,duetothechangesindepositliabilities,theaverageweeklyamountheldasstatutoryreservesbythecommercialbanksincreasedby1.7percentto$47million,whilethatofthenon-banksdeclinedby50.5percentto$2.2million.
The commercial banks also continued to hold asecondary reserve requirement of 2 per cent ofdeposit liabilities which was remunerated at 350basis points below the ‘repo’ rate. In order tocontain theexcess liquidity in the financial system,theBankalsoissuedathree-monthbillwithafacevalue$500millioninNovember2009andoffered
several short term special deposits to commercialbanksasfollows:
• A6-month$1.5billiondepositwithmaturityonDecember28,2010
•A1-year$1billiondepositwithmaturityon November4,2010•An18-month$1billiondepositwithmaturityonMay3,2011
Notwithstandingtheseinitiatives,thefinancialsystemremained very liquid and throughout the periodcommercialbanksheldexcessreservesattheBank.
Downtown Owners & Merchant Association (DOMA) Facility
The DOMA facility, which was established by theGovernment in 1990 to provide a subsidy for theinterestonloanstakenoutbymerchantstorebuildoperationsaftertheattemptedcoup,cametoanendinfinancialyear2009/2010.Thelastinterestsubsidyof$1,343.53wasmadeinDecember2009.
CHART IVRTGS ANNUAL VOLUMES
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
2005/2006 2006/2007 2007/2008 2008/2009 2009/2010
Central Bank of Trinidad and Tobago Annual Report 2010 | 9
Review of Activities 2009-2010
Government and Government Guaranteed Securities
TheBankcontinuedtoissuesecuritiesonbehalfofGovernmentandvariousstateagenciesaswellastoactasRegistrarandPayingAgent.
Treasury Bills and Notes
Duringtheyear,theBankmaintainedresponsibilityfor the issuance of all Treasury Bills and TreasuryNotes,mostofwhichwereutilizedforopenmarketoperations. The legal ceiling for issuance of thesesecurities had been reached inMay 2008 initiallyand the outstanding amounts remained relativelyunchangedat$13.9billionforTreasuryBillsand$5billion forTreasuryNotesat theendofSeptember2010,asmaturingissueswererolledover.
Bonds
Several bonds were issued on behalf of theGovernment and State Agencies during the year.Alloftheformerwereissuedtoprovidefundingtotwoinsurancecompanies,CLICO/BritishAmerican,inthecontextofaMemorandumofUnderstandingdrawnupbetweentheparentcompanyCLFinancialLimitedwhichranintofinancialdifficulties,andtheGovernment of Trinidad and Tobago.
•October 16, 2009 -GORTT$231.5million11-year 6.40 per cent maturing on June 30, 2020(reopening of GORTT $600 million which wasissuedonJune30,2009).
•October 30, 2009-EducationFacilitiesCompanyLimited(EFCL)$400million7-year5.35percentmaturingonOctober30,2016
• December 4, 2009 - Trinidad and Tobago Mortgage Finance Limited (TTMF) Tranche B$320million 5-year 6.00 per centmaturing onDecember4,2014
• February 4, 2010 -GORTT$3.1billionFixedRate(3Series)Bond:
• $1.1 billion, 17-year, 6.6 per cent,maturing onFebruary4,2027
• $1.0 billion, 19-year, 6.7 per cent,maturing onFebruary4,2029
• $1.0 billion, 21-year, 6.8 per cent,maturing onFebruary4,2031
• February9,2010-GORTT$600million,15-year,6.50percentmaturingonFebruary9,2025
• March 19, 2010 - National Insurance andPropertyDevelopmentCompany(NIPDEC)$500million18-year6.25percentmaturingonMarch19,2028
• April 20,2010 - GORTT $794 million 13-year5.95percentmaturingonApril20,2023
• September 2, 2010 - National Insurance andProperty Development Company (NIPDEC)$360million18-year6.10percentmaturingonSeptember2,2028
During the financial year, the Bank made interestpaymentsof$789.2milliononCentralGovernmentbonds issued under the Development Loans Act1964 and its amendments and $0.18 million onbonds issued under the Public Sector (Arrears ofEmoluments) Amendment Act of 1998 as well asoutstanding principal payments of $0.13 milliononthe10-year8percentTaxFreeBondissued inDecember 1995. The Bank also made principalandinterestpaymentsof$52.0millionand$379.2million,respectively,onStateAgenciesbonds.
CARICOM MULTILATERAL CLEARING FACILITY (CMCF)
TheBankcontinuedtobetheAgentfortheCMCFwhichremaineddormantandfocusedsolelyontherepaymentof theoutstandingdebtbyGuyana.Nopayments were received during the year and theoutstandingbalanceowedbyGuyanatotheCMCFremained atUS$31.1million as at September 30,2010pendingtheeffortsbyCARICOMGovernorstofindamodality forprovidingdebtrelief toGuyanaundertheEnhancedHeavilyIndebtedPoorCountries(E-HIPC)initiative.
| Central Bank of Trinidad and Tobago Annual Report 2010 10
REGIONAL LOANS
Bank of Guyana Bilateral Debt
TheBankofGuyanadebttoTrinidadandTobagoisaconsolidationof loansowedtotheBankandtheGovernmentthrough:-
1.TheCARICOMOilFacility(1981-1982)2.TheBalanceofPaymentsSupportFacility (1974-1975)3.BilateralSettlementsLoan(1985)
This consolidateddebtwas rescheduledunder theE-HIPCInitiativeinOctober2005andthereducedbalanceofUS$55millionisbeingrepaidonasemi-annual basis. During this financial year, US$4.04millionwasreceivedanddistributedasfollows:
GovernmentoftheRepublicofTrinidadandTobago-US$0.82M
CentralBankofTrinidadandTobago -US$3.22M
ThebalanceoutstandingonthisloanasatSeptember30,2010wasUS$47.8million.
BancoLatinamericanoDeExportacionesS.A.(BLADEX)
ThetotalamountofBLADEXsharesheldbytheBankremainedunchangedat160,626.50.
FOREIGNEXCHANGEMARKETOPERATIONS
The weak recovery in both the more developedeconomies and the domestic market resulted incontinuingtightnessintheforeignexchangemarket.Inflowsofforeignexchangetoauthorizeddealersinthedomesticmarketinthefinancialyear2009/2010remained relatively unchanged at US$4.0 billioncompared with US$4.1 billion in the previousfinancialyear.Receiptsfromtheenergysectorgrewby17percentwhilethosefromthenon-energysectorcontinued to decline. At the same time, demand
for foreign exchange remained very strong withtotalsalesofUS$5.5billioncomparedwithUS$5.8billionrecordedayearearlier.Thecustomarytrend,wherebyhigherpurchases (and thereforesales)areevidentattheendofeachquarterduetotheinflowsfor tax payments, again continued (see Chart V).TheCentralBankintervenedinthemarketregularlythroughouttheyear,sellingatotalofUS$1.5billionto the authorized dealers. In the context of thesetight conditions, over the year the buying andselling rates for the TT dollar depreciated by 0.31per cent and 0.42 per cent respectively to reachTT$6.3163=US$1 (buying) and TT$6.3765=US$1(selling)atSeptember30,2010.
FOREIGNRESERVESMANAGEMENT
TheCentralBankcontinuedtomanagetheforeigncurrency reserves in accordance with the currentpoliciesandguidelinesestablishedbytheBoard.Thebroadoperatingframeworkwaslargelyunchanged,withasignificantportionof thereserves managedinternally,withafocusonliquidityandmaintenanceofvalue.Externalfundmanagerswereresponsiblefor investingapartof thereserveswith thegoalofhigherreturnswithinsetrisklimits.
Theforeigncurrencyreserves(excludinggold,SDRandGovernmentholdings)grewtoUS$8.6billionattheendofSeptember2010 fromUS$8.4billionayearearlier. Receipts fromtheoilandgassector-themajorinflow-wereupslightlyfromthepreviousyear, given some improvement in oil prices andrelativestabilityingasprices.
Somestabilityreturnedtotheinternationalfinancialmarketsduringtheyear,comparedwiththeturmoilof theprevious year, andbenchmark interest rateswere maintained at historically low levels in thedevelopedeconomies.Therewassomeslowinginthedeclineinfixedincomeyields,andthereforeincapitalgainsonfixedincomesecurities.Accordingly,the overall return of 2.36 per cent on the foreignreservesforthefinancialyear2009/2010waslowerthanthe4.25percentearnedin2008/2009.
Central Bank of Trinidad and Tobago Annual Report 2010 | 11
RESEARCH,INFORMATIONANDKNOWLEDGESERVICES
Withrespecttopublicationofeconomicinformation,the Research Department developed several newstatistical series including an Energy CommodityPriceIndexinconsultationwiththeEnergyChamberandanIndexofCapacityUtilization.Additionally,a project to spearhead Trinidad and Tobago’ssubscription to the International Monetary Fund’sSpecial Data Dissemination Standard (SDDS) was startedincollaborationwiththeMinistryofFinanceandtheCentralStatisticalOffice.
The Department’s activities were heavilyconcentrated on policy support. A medium-termeconomic framework and detailed projections ofCentralBank’sforeignexchangeflowswerepreparedandupdatedduring2010.These,aswellasstudieson the changing currency compositionof reserves,guidelines on mortgage rates and the impact ofchanges in theminimumwageoncompetitivenesswere discussed in the Monetary Policy SupportCommittee. The Department was also closelyinvolvedinfinancialstabilityissues,notablythestresstestingofthecommercialbanks.
Usingaprojectteamapproachtotechnicalresearch,the economists worked on research papers whichsoughttodirectlyaddresssomeofthecontemporarymonetary policy challenges. Subject mattersincludedinvestigationsintothevolatilityoftheRetailPrices Indexand the sensitivityof remittance flowsin the Caribbean to the global financial crisis. Anewannualpublication, titledThe Central Bank of Trinidad and Tobago Research Papers,waslaunchedin September 2010 and included output from thevisiting scholar programme. In terms of broaderoutreach, economists made presentations toexternalaudiencesincluding:theConferenceontheEconomyattheUniversityoftheWestIndies,severalbanks, theEmployers’ConsultativeAssociationandstafffromvisitingeducationalinstitutions.
With respect to knowledge services, the phasedimplementation of the lifecycle system of recordsmanagement in the Bank continued. The webmoduleoftherecordsmanagementapplicationwassuccessfullyupgradedandstaff received training intheuseof theonlinesystemtoprocess records fortransfertotheRecordsCentre.TheBankalsoenteredintoavendorhostingarrangementfortheLibrary’sweb application.
CHART VPURCHASE AND SALES OF FOREIGN EXCHANGEOCTOBER 2008 - SEPTEMBER 2010
Purchases Sales
0
100
200
300
400
500
600
700
US$
Mill
ions
Review of Activities 2009-2010
| Central Bank of Trinidad and Tobago Annual Report 2010 12
The Document Management (DM) applicationwas successfully upgraded and members of staffwere provided with one-on-one training on thenew features. The Knowledge and InformationManagement (KIM) Department conductedinterviewswithfiveretirees,transcribingthecontentintotheDMaspartof theongoingprogrammeforcapturingvariousaspectsoftheBank’shistory.
Following a review of the Exchange Controldocuments, some records were processed andstored,anddestructionofthosetaggedfordisposalbegan.
NATIONALFINANCIALLITERACYPROGRAMME
In2010,TheNationalFinancialLiteracyProgramme(NFLP)continuedtobroadenitsinterventions.Thenumber of participating primary schools expandedto280.Sessionswerealsoheldatseveralsecondaryschools and tertiary institutions. Close to 50secondary school teachers were trained through“Train the Trainer” workshops. A survey of theimpact of the programme at the primary schoollevelwasalso initiatedat26schools. Asecondaryschoolchallengecompetitionwashostedaswellasasecondaryschoolsquiz.
Thefinaltwooffiveplannedexpositionswereheldforowners and operators of small and micro enterprises. FundedinpartbytheMultilateralInvestmentFund(MIF) of the Inter-American Development Bank(IDB),NFLPdeliveredsessionsto152personsfrom
15organizationswhichdirectlyinterfacewithSMEs.Otheroutreachsessionstargetedcommunitygroups,employees,retireesandparticipantsinprogrammesoffered by the Ministry of the People and SocialDevelopmentandtheMinistryofNationalSecurity.Eight“publictown”meetingswereheld,wheretheemphasis was on personal financial managementand retirement planning.
TheworkoftheNFLPwasrecognizedandhighlightedboth regionallyand internationally. TheNFLPwasfeatured on the website of the Organization forEconomic Cooperation and Development (OECD)followingparticipationinanOECDglobalconference.Furthermore, NFLP assisted in the developmentof the Jamaican Financial Literacy Programme andplayedacentralroleinthelaunchoftheCaribbeanFinancialLiteracywebsite“FinanciallyFit”.
OUTREACHPROGRAMMES
Dr. Eric Williams Memorial Lecture
The24thannualDr.EricWilliamsMemorialLecturewasheldonFriday July9,2010at the refurbishedCentralBankAuditorium.ThefeaturespeakerwasProfessorE.NigelHarris,theViceChancelloroftheUniversityoftheWestIndies.ProfessorHarrisspokeon the theme:Haiti, its many Crises and its Place in the Caribbean. Thisyear’s lecturewastimely inlightoftheinternationalattentionfocusedonHaitiin the aftermath of the catastrophic earthquakeexperiencedearlierintheyear.
Students compete in the National Financial Literacy Programme Secondary School Challenge Competition
Professor E. Nigel Harris
Central Bank of Trinidad and Tobago Annual Report 2010 | 13
Museum Outreach and Upgrade
FollowingdiscussionswiththeTourismDevelopmentCompany (TDC) and local tour guides, theMoneyMuseumwas added as an attraction on local tourguideschedules.Severaloutreachprogrammes
wereconductedtowidenthescopeofvisitorstothemuseum. The vast majority of the 2,256 personswhovisitedthemuseumduringtheyearwereschoolchildren, including special groups such as the St.Mary’sHome.Planningforafairlyextensivemuseumupgrade, the first since the launchof themuseumin2004,commencedduringtheyear.Aconsultantwascontracted tocatalogue,photograph,conserveandcleanartifactsandtoprovidetraininginobjecthandling,environmentmonitoringandpreventativeconservation.
Youth Mentorship
TheannualVacationInternshipProgramme(VIP),initsseventhyear,washeldduringJune-August2010.Nineteeninternsparticipatedandwereexposedtospecificcoursesaimedatimpartinglifeskills.SessionscoveredareassuchasPersonalFinancialPlanning,
Office Commandments, Healthy WorkplaceCommunicationandCareerManagementandeachinternwasassignedamentorfromtheBank’sstaff.
TheDeLaRuescholarship,alsoinitsseventhyear,wasawardedtoMs.PreeyaMohan.
Charitable Work
TheBankcontinueditsfocusonsupportingtwomaincharities – the internally-based “We Care” charityandtheUnitedWayofTrinidadandTobago.“WeCare”wasabletoimpact13homes/schoolsandover200 families.
Review of Activities 2009-2010
Children from the St. Mary’s Home get a tour of the Money Museum Vacation Interns 2010
Vacation Interns in a training session with HR
Central Bank We Care Volunteers
| Central Bank of Trinidad and Tobago Annual Report 2010 14
Sports and Cultural Club
The Sports and Cultural Club changed leadershipduring thisyear. Inattempting toencouragemoreactive member participation, the Club launched,amongother things,aBookClub,aNewsletter“InTouch”, quarterly feedback meetings, the BiggestLosercompetitionandadeepseafishingadventure.The Club successfully managed the Central BankPremierAll InclusiveParty,partproceedsofwhichwenttowardsthe“WeCare”charity.TheClubalsoco-organized the 8th Central Bank Intra-RegionalGameswhichwasheldinGuyanawheretheBankplacedthird.
Retirees Club
In October 2010, the Bank hosted the annualoutreach session for retirees. The session wasfacilitatedbytheBank’sEmployee/RetireeAssistanceProvideranditfocusedon“takingcareofself”withlecturescoveringphysicalandmentalhealth.
HUMANRESOURCES
In 2010, SeniorManagement took the decision torationalize the Bank’s manpower. In this regard,a Bank-wide rationalization of manpower needsfor each Department was undertaken. As faras practicable, staffing needs were filled throughinternal recruitments, with external filling ofvacanciesrequiringtheexpressedapprovalofSeniorManagement. As a result, external recruitmentwas generally restricted to positions identified asspecialist innatureandthoseconsideredcritical totheoperationsoftheBank.
In this context, there was a marginal decline (1.4per cent) in the Bank’s staff complement to 479employees in2010. Twentyemployees joined theBank,offsetbyacomparablenumberofseparations.
Staff working together at theretirees outreach session
Central Bank Netball Team
Central Bank Fusion Team
Central Bank of Trinidad and Tobago Annual Report 2010 | 15
Of the separations, five employees with overtwenty-fiveyearsserviceoptedforearlyretirement,includingthreemembersoftheManagementteam-Mrs. JenniferGreaves,SeniorManager, IT&NFLP;Mr. Charles De Silva, Manager, Policy & Support,FISD; and Mr. Victor Maloney, Assistant Manager,CorporateCommunications.
Despite reduced budgetary provisions for trainingand development, the development needs of staffremained a major priority. To this end, 47 percent of employees, comprising mainly managerialand Bargaining Unit 3 staff, attended 118 localand overseas training courses, conferences andmeetings. Additionally, the Human ResourceDepartment organized several in-house trainingmodules,includingRetirementPreparation,PrudentFinancial Planning and LeadershipDevelopment.Trainingwasalsogearedtowardssensitizingstafftotherequirementsassociatedwith theOccupationalSafetyandHealthAct (OSHA).Meanwhile, there-launch of the Employee Suggestion Programme inApril2010hasencouragedstafftoshareideasaimedat improvingtheefficiencyandeffectivenessoftheBank’soperations.
Employee and Industrial Relations
TheBanksuccessfullynegotiatedtwonewCollectiveAgreements for the period 2009-2011 with therepresentativeunionsforBargainingUnits1and3.Theseweredoneinacordialmanner,inapeacefulindustrial relations climate. Regular non-crisismeetingsbetweentheBank’sManagementandtheworkers’ representativescontinued toassist inpre-emptingnegativeoutcomesofemployeeinfractionsofrulesandregulationsoftheBank.Criticalsupportand/or advice on issues of discipline assistedDepartmentsindealingwithseveralstaffingissues.
RISKMANAGEMENT
The risk management capability of the Bank wasstrengthened with the implementation of theGovernance,Risk,Compliance(GRC)infrastructure.The Central Bank, in collaboration with theBankers’AssociationofTrinidadandTobagoandtheOffice of Disaster Preparedness and Management(ODPM),continuedtoassistinthedevelopmentofthefinancial sector’s mitigation and response strategies. Amajor thrust in this regardwas thedevelopmentand acceptance of a Business Continuity Planning(BCP)FinancialFramework,thatcallsforthecreationof a BCP Financial Sub-Committee of the ODPMand aWorking Committee consisting of membersfromeachofthecommercialbanksandtherelevantregulatorybodies.Theworkofthesecommitteesiscriticaltoensuringthatproperresponseandrecoverystrategiesareinplaceacrossthesector,thatbusinesscontinuity plans are consistent, compatible and ofanagreedstandardandthatduringanyunforeseendisruption,effectivecommunicationandrestorationstrategies are in place.
Review of Activities 2009-2010
| Central Bank of Trinidad and Tobago Annual Report 2010 16
Central Bank of Trinidad and Tobago Annual Report 2010 | 17
Financial Statements2009-2010
| Central Bank of Trinidad and Tobago Annual Report 2010 18
Financial Statement2009-2010
Central Bank of Trinidad and Tobago Annual Report 2010 | 19
RepoRt of the
AuditoR GeneRAl
Financial Statements
RepoRt of the
AuditoR GeneRAl
Central Bank of Trinidad and Tobago Annual Report 2010 | 21
Consolidated Statement of Financial PositionAS AT 30 SEPTEMBER 2010 (Expressed in Trinidad & Tobago Dollars)
GOvERNOR DEPUTY GOvERNOR
Notes Sept 2010$’000
Restated Sept 2009
$’000
ASSETS Foreign currency assetsreigncurrencyassetForeigncurrencycashandcashequivalentsForeigncurrencyinvestmentsForeign receivablesSubscriptionstointernationalfinancialinstitutionsInternationalMonetaryFund-HoldingsofSpecialDrawingRights
Local currency assetsLocalcurrencycashandcashequivalentsLocalcurrencyinvestmentsPensionassetsAccountsreceivableandprepaidexpensesOtherassetsProperty,plantandequipment
TOTAL ASSETS
LIABILITIESForeign currency liabilitiesDemand liabilities - foreignInternationalMonetaryFund-AllocationofSpecialDrawingRightsAccountsPayable
Local currency liabilitiesDemand liabilities - localAccountspayableProvisionfortransferofsurplustogovernmentProvisions
CAPITAL AND RESERvES
CapitalGeneral ReserveRetainedEarnings
TOTAL LIABILITIES, CAPITAL AND RESERvES
4589
45,6781011
12
13
1213
14
23
25,287,36937,990,892173,220
3,299,906 2,609,90069,361,287
943,077305,736239,902
2,063,928272,592233,544
4,058,779 73,420,066
83,168
3,042,0888,599,215
11,724,471
28,946,41925,468,571478,6055,404,545
60,298,140
800,000588,0499,406
1,397,455
73,420,066
28,083,65834,526,330160,734122,682
2,678,803 65,572,207
693,4252,045,591238,2502,112,183308,123251,973
5,649,545 71,221,752
48,807
3,122,3928,541,943
11,713,142
29,653,84525,578,493920,1712,011,785
58,164,294
800,000534,8719,445
1,344,316
71,221,752
| Central Bank of Trinidad and Tobago Annual Report 2010 22
Consolidated Statement of Comprehensive IncomeFOR THE YEAR ENDED 30 SEPTEMBER 2010 (Expressed in Trinidad & Tobago Dollars)
Notes Sept 2010$’000
Restated Sept 2009
$’000
Income from foreign currency assetsInterestincomeInterestexpense
Gain/(Loss)fromcurrencytranslations
Gainfromfairvaluechanges(Loss)fromfairvaluechanges
Income from local currency assetsInterestincomeRental incomeOtherincome
Decrease in provisions
Total income
Operating expensesPrintingandmintingSalaries and related expensesInterestpaidDirectors’ feesDepreciationOtheroperatingexpensesTotal operating expenses
Net surplus for the year before taxationBusinesLevyexpense
Net surplus after taxation
Total comprehensive income for the period
15
16
16
17
18
1,051,525(26,195)1,025,330
(1,283)
406,701(56,091)350,610
1,374,657
73,9501,364
222,467297,781
141,010
1,813,448
55,828116,468349,557
94035,08397,800
655,676
1,157,7717
1,157,764
1,157,764
750,435(29,047)721,388
(104,430)
248,144(143,895)104,249
721,207
286,5831,58723,459
311,629
128,544
1,161,380
52,864157,656248,712
80635,278134,313629,629
531,7517
531,744
531,744
Central Bank of Trinidad and Tobago Annual Report 2010 | 23
Consolidated Statement of Changes in EquityFOR THE YEAR ENDED 30 SEPTEMBER 2010 (Expressed in Trinidad & Tobago Dollars)
Balance as at 1 October 2008
NetsurplusaftertaxationTransferofsurplustoConsolidatedFundTransfer to general reserveTransfertopaid-upcapital
Balance as at 30 September 2009
Balance as at 1 October 2009
NetsurplusaftertaxationTransferofsurplustoConsolidatedFundTransfer to general reserve
Balance as at 30 September 2010
761,874
---
38,126
800,000
800,000
---
800,000
428,394
--
106,477-
534,871
534,871
--
53,178
588,049
9,180
1,157,764 (1,012,896) (106,477) (38,126)
9,445
9,445
531,744 (478,605) (53,178) 9,406
1,199,448
1,157,764 (1,012,896)
- -
1,344,316
1,344,316
531,744 (478,605)
- 1,397,455
Issued andFully
Paid Up Capital$’000
GeneralReserves
$’000
RetainedEarnings
$’000
Total
$’000
| Central Bank of Trinidad and Tobago Annual Report 2010 24
Consolidated Statement of Cash FlowsFOR THE YEAR ENDED 30 SEPTEMBER 2010 (Expressed in Trinidad & Tobago Dollars)
Notes Sept 2010$’000
Restated Sept 2009
$’000
Cash flows from operating activitiesNetsurplusfortheyearAdjustmentsfor: Depreciation Netloss/(gain)ondisposaloffixedassets Interestincome Interestexpense Dividend income Provisions RevaluationofArtwork Buildingfund Gold reserves Foreigncurrencydifferencesinmonetaryassets&liabilitiesCash outflows before changes in operating assets and liabilitiesChanges in operating assets and liabilities Decrease/(Increase)inaccountsreceivable&prepaidexpenses Decrease/(Increase)inotherassets (Increase)inpensionasset (Decrease)/IncreaseinaccountspayableandotherliabilitiesNet cash flow (used in)/from operations
Cash flows from investing activities Purchaseofproperty,plantandequipment Proceedsfromsaleofproperty,plantandequipment Netpurchaseofinvestments/proceedsfromsaleofinvestments Netrepaymentofloansandadvances Interestreceived Dividends received Interestpaid (Decrease)/IncreaseinInternationalMonetaryFundHoldingsof SpecialDrawingRights PaymenttoConsolidatedFundNet cash flow from/(used in) investing activities
Cash flows from financing activities Purchaseofsharesininternationalfinancialinstitutions LeasepaymentNet cash flow (used in)/from financing activities
Net decrease in cash and cash equivalentsCash and cash equivalents, beginning of yearCash and cash equivalents, end of year
4
531,751
35,278 11 (1,007,971) 248,711 (3,552) (128,544) (2,411) - 116,855 61,768 (148,104)
77,747 24,741 (1,652) (694,735) (742,003)
(14,558) 110 (251,251) 1,869,542 965,675 3,552 (279,697)
(11,402) (920,171) 1,361,800
(3,177,224) 10,790 (3,166,434)
(2,546,637) 28,777,083 26,230,446
1,157,771
35,083 (279) (1,099,279) 349,557 (3,552) (141,010) - (175,656) 57,034 (201,625) (21,956)
(1,969,524) (36,379) (24,115) 5,804,352 3,752,378
(34,434) 536 (5,942,795) (1,839,902) 1,151,554 3,552 (336,550)
9,484 (1,078,295) (8,066,850)
(1,221) 10,579 9,358
(4,305,114) 33,082,197 28,777,083
Central Bank of Trinidad and Tobago Annual Report 2010 | 25
Notes to Consolidated Financial StatementsFOR THE YEAR ENDED 30 SEPTEMBER 2010 (Expressed in Trinidad & Tobago Dollars)
1. Incorporation & principal activities The Central Bank of Trinidad and Tobago (theBank)wasestablishedasacorporatebodyin1964undertheCentralBankAct(Chapter79:02).TheprincipalofficeislocatedatEricWilliamsPlaza,Independence Square, Port of Spain, Trinidadand Tobago.
TheCentral BankAct entrusts the Bankwith arange of responsibilities, among which is thepromotion of monetary, credit and exchangeconditionsmost favourable to thedevelopmentoftheeconomyofTrinidadandTobago.
The Bank has the exclusive right to issue andredeemcurrencynotesandcoinsinTrinidadandTobago,and isempowered, interalia, toactasbanker for,and rendereconomic, financialandmonetaryadvicetotheGovernmentofTrinidadand Tobago and open accounts for and acceptdeposits from the Central Government, LocalGovernment,statutorybodies,commercialbanksand other financial institutions. It also has theauthority to make advances, purchase and selldiscounted bills of exchange and promissorynotesonbehalfoftheaboveinstitutions,andtopurchaseandsellforeigncurrenciesandsecuritiesofotherGovernmentsandinternationalfinancialinstitutions.
The Bank is also responsible for protecting theexternal value of the currency, managing thecountry’s external reserves and taking steps topreservefinancialstability.
2. Significant accounting policies Theprincipalaccountingpoliciesappliedinthepreparation of the Financial Statements are setoutbelow.Thesepolicieshavebeenappliedtoalloftheyearspresented.
a. Basis of preparation These Financial Statements have been
preparedon thehistorical cost basis except
forfinancialassetsandliabilitieswherethefairvalueandamortisedcostbasisofaccountingare adopted.
These Financial Statements have beenpreparedinaccordancewiththeCentralBankAct (Chapter79:02). TheBankhaschosento adopt the recognition andmeasurementrequirements of the International FinancialReporting Standards together with thepresentation and disclosure framework inthepreparationoftheseFinancialStatementsinsofarastheBankconsidersitappropriatetodosohavingregardtoitsfunctions.
These Financial Statements depart from the
International Financial Reporting StandardsbecauseofthenatureoftheBank,includingits role in the development of the financialinfrastructure of the country as well as theregulations by which it is governed. TheInternational Financial Reporting Standardswhichhavenotbeenadoptedare:
•IAS21–TheEffectofChangesinForeignExchangeRatesrequiresthatallunrealisedgainsandlossesbeaccountedforthroughthe Income Statement. The Central BankActrequiresthattheprofitfortheyearbe transferred to theConsolidatedFundbut does not distinguish betweenrealised and unrealised profits. As suchtheBankaccountsforallunrealisedgainsandlossesonChangesinExchangeRatesthroughaProvisionforForeignCurrencyExchangeRateReserves.
•IAS37–Provisions,ContingentLiabilities
andContingentAssetsdefinesProvisionsas liabilities of uncertain timing oramount.TheCentralBankActimposesspecific limitations on the scope of theBank tocreate reservesand soprepareforcertainunforeseenevents.TheBankhas therefore established Provisions
| Central Bank of Trinidad and Tobago Annual Report 2010 26
for specific types of transactions andobligations, which would more typicallybe reflected as various types of reservesundertheIFRS.
• IAS39–FinancialInstruments:Recognitionand Measurement requires that wherean asset is classified as available for sale, the gains or losses on transactionsshould be recognised directly in Capitaland Reserves through the Statement ofChangesinEquity.TheCentralBankActimposes specific limitation on the scopeoftheBanktocreatereserves.ThereforetheBankrecognisesitsunrealizedgainsorlossesontheavailableforsaleinvestmentsunder“Provisions”ratherthan“Reserves”.Inthisway,thefinancialstatementsreflectamorerealisticpictureoftheperformanceoftheBank.
• IFRS7–FinancialInstrumentsDisclosuresrequires that an entity discloses verydetailed information on its investments including information on concentrationof risk on investments; geographicalinformationoninvestmentsandsensitivityanalysisforeachtypeofmarketrisk.TheBank’sinvestmentofthecountry’sreservesis managed under strict governanceprocedures and the Central Bank Actrequires the Bank maintain a prudentiallevelofconfidentiality.
Theaccountingtreatmentadoptedforeachoftheseis defined in the accounting policies and notesbelow.Theimpactofthesedeparturesisreflectedin the improvedstability in theoperationsof theBank.ManagementconsidersthattheseFinancialStatements fairly represent the Bank’s financialposition,financialperformanceandcashflows.
Notes to Consolidated Financial Statements
b. Foreign currency translation i. Functional and presentation currency The Financial Statements are presented
in Trinidad and Tobago dollars,which isthe Bank’s functional and presentationcurrency.
ii. Transactions and balances Monetaryassetsandliabilitiesdenominated
in foreign currencies are translated intoTrinidad and Tobago dollars at the ratesof exchange prevailing at the close ofbusiness at the Statement of FinancialPositiondate.
Translation gains or losses, at year-endexchange rates of these monetary andnon-monetary assets and liabilities,are recognised in Provisions – Foreigncurrencyexchangeratereserves.
Foreigncurrencytransactionsaretranslatedat the exchange rates prevailing on thetransactiondates.Foreignexchangegainsand losses resulting from the settlementofsuchtransactionsarerecognisedintheStatementofComprehensiveIncome.
iii. Special Drawing Rights Transactions with the International
Monetary Fund (IMF) are recorded atthe local currency equivalent of SpecialDrawingRightsusingratesnotifiedbytheIMF.
c. Critical accounting estimates and judgments
TheBankmakesestimatesandassumptionsthat affect the reported amounts of theassetsandliabilitieswithinthefinancialyear.Estimates and judgements are continuallyevaluated and are based on historical
Central Bank of Trinidad and Tobago Annual Report 2010 | 27
experience and other factors, includingexpectationsoffutureevents.
The resultingaccountingestimateswill seldomequaltherelatedactualresults.Theestimatesandassumptionsthathaveasignificantriskofcausingmaterial adjustments to the carryingamounts of assets and liabilities within thenextfinancialyearareillustratedbelow:
i. Estimated pension obligation The estimate of the pension obligation,
inrelationtothedefinedbenefitpensionplan operated by theBank on behalf ofits employees, is primarily based on theestimation of independent qualifiedactuaries. The value of the pensionobligation is affected by the actuarialassumptions used in deriving theestimate.
ii. Provision for bad and doubtful debt Pursuant to Section 35(4) of the Act,
provisionsaremadeforbadanddoubtfuldebts intheaccounts. Inthisregard, therelevantassetsareshownintheStatementof Financial Position net of the amountwhich,intheopinionoftheBank,requiresa specific provision.
iii. Estimate of contingent liability TheBankmayfacelitigationmattersinthe
normal course of business. An estimatefor legal settlement and associated cost has been provided for in the FinancialStatements.
d. Cash and cash equivalents For the purposes of the Statement of Cash
Flows, cash and cash equivalents comprisebalanceswithlessthanorequaltothreemonthstomaturity from the date of acquisition. Itconsists of cash, balances with other banks,short term funds and investments, includingfixeddepositsandreverserepurchases.
Notes to Consolidated Financial Statements
e. Repurchase agreements Repurchase agreements (Repos) are generally
overnighttransactionsplacedattheendoftheday.
f. Investment securities The Bank classifies its investment securities
in the following five categories: “Held toMaturity”, “Available for Sale”, “Loans andAdvances”,“FairValuethroughProfitorLoss”and“RelatedEnterprises”.
i. Held to maturity Investmentsclassifiedasheldtomaturity
are non-derivative financial assets withfixedordeterminablepaymentsandfixedmaturitythattheBank’smanagementhasthepositive intentionandability toholdtomaturity.Interestontheseinvestmentsis recognised in the Statement ofComprehensiveIncome.
ii. Available for sale Theseinvestmentsareintendedtobeheld
foranindefiniteperiodoftime,andmaybesoldinresponsetoneedsforliquidityortomeetthegoalsofthestrategicassetallocationapprovedbytheBoard.
They are initially recognised at cost,
(whichincludestransactioncosts),and are subsequently re-measured at fairmarketvalue. Regular purchases and sales offinancialassetsarerecognisedonthetradedate,whichisthedateonwhichtheBankcommitstopurchaseorselltheasset.
Unrealised gains and losses on theseinvestments are recognised in Provisions–RevaluationReserveatMarketValue.
When the securities are disposed of,the related accumulated fair valueadjustmentsareincludedintheStatementofComprehensiveIncomeasrealisedgainsandlossesfrominvestmentsecurities.
| Central Bank of Trinidad and Tobago Annual Report 2010 28
iii. Loans and advances Loans and advances are non-derivative
financialassetswithfixedordeterminablepayments that are not quoted in anactive market. They arise when theBankprovidesmoneyorservicesdirectlyto a counterparty, with no intention oftrading the receivableandarecarriedattheir expected realisable value, less anyprovisionforimpairment.Interestarrearsare accrued and provided for in thecurrentfinancialperiod.
Determination of allowances for losses is basedonanannualappraisalofeachloanor advance. Specific provisions are made when,intheopinionofmanagement,creditrisk or other factors make full recoverydoubtful. Provisions created, includingincreasesanddecreases,arerecognisedintheStatementofComprehensiveIncome.
iv. Fair value through profit or loss Financial assets at fair value through
profit or loss may only be made ifthe financial asset either contains anembedded derivative or will be managed onafairvaluebasisinaccordancewithadocumentedriskmanagementstrategy,orifdesignatingit(andanyfinancialliability)at fair value will reduce an accountingmismatch.
Derivativesare initially recognised in theStatementofFinancialPositionatfairvalue onthedateonwhichaderivativecontractis entered into and are subsequently re-measured at their fair value. Fair valuesare obtained fromquotedmarket pricesinactivemarkets,includingrecentmarkettransactions, or valuation techniques, asappropriate.Thebestevidenceofthefairvalueofaderivativeatinitialrecognitionisthetransactionprice(i.e.,thefairvalueoftheconsiderationgivenorreceived).
A derivative is a financial instrumentor other contract within the scope ofIAS 39 with all three of the followingcharacteristics:
a. its value changes in response to
the change in a specified interestrate, financial instrument price,commodity price, foreign exchangerate, index of prices or rates, creditrating or credit index, or othervariable,providedinthecaseofanon-financial variable that the variable isnotspecifictoapartytothecontract(sometimescalledthe‘underlying’);
b. it requires no initial net investmentor an initial net investment that issmaller than would be required forothertypesofcontractsthatwouldbeexpected to have a similar responsetochangesinmarketfactors;and
c. itissettledatafuturedate.
v. Related enterprises The Bank has investments in several
related companies. All of these equityinvestments, with the exception of theinvestment in theHomeMortgageBank(HMB),donothaveaquotedmarketpricein an active market and therefore theirfair value cannot be reliably measured.These equity investments are thereforemeasuredatcost.Theequity investmentinHMBismeasuredatfairmarketvalue.Unrealisedgainorlossonthisinvestmentis recognised inProvisions–RevaluationReserveatMarketValue.
g. Impairment of financial assets An investment is impaired if its carrying
amount is greater than its estimatedrecoverable amount. The amount of theimpairment loss for securities carried at
Notes to Consolidated Financial Statements
Central Bank of Trinidad and Tobago Annual Report 2010 | 29
A valuation is done every three years byindependentactuaries. Thevaluationat30September,2008andtheIAS19Methodologywere used, based on information receivedfromtheactuarialreportdated2November,2010, for the preparation of the FinancialStatements.
Inaccordancewiththeadviceoftheactuaries,the Plan’s costs of providing pensions arechargedtotheStatementofComprehensiveIncome in order to spread the regular costovertheservicelivesofemployees.
Actuarial gains and losses are recognised asincome or expense when the cumulativeunrecognised actuarial gain or loss exceedsthe greater of 10% of the defined benefitobligation and 10% of the fair value of thePlanassets.
The Plan is funded by payments fromemployeesandtheBank,takingintoaccountthe recommendations of independentqualifiedactuaries.
j. Notes and coins Thestockofnotesandcoinsisstatedatoriginal
cost.IssuesareaccountedforusingtheFirstIn First Out Method. All associated costssuchasshipping,handlingandinsuranceareexpensedimmediately.Printingandmintingcostsareexpensedwhentheunitsofcurrencyareissuedandputintocirculation.
k. Leases i. Operating leases (as lessee) TheleasesenteredintobytheBankare
primarily operating leases. The totalpayments made under operating leasesarechargedtotheStatementofEarningson a Straight Linebasis over theperiodofthelease.Whenanoperatingleaseisterminated before the lease period hasexpired, any payment required to be
Notes to Consolidated Financial Statements
amortisedcostiscalculatedasthedifferencebetweenthesecurities’carryingamountandthepresentvalueoftheexpectedfuturecashflows discounted at the original effectiveinterest rates.
The recoverable amount of an instrumentmeasuredatfairvalueisthepresentvalueofexpectedfuturecashflowsdiscountedatthecurrent market rate of interest for a similarfinancial asset.
h. Offsetting financial instruments Financial assets and liabilities are offset and
thenetamountreportedinthebalancesheetwhen there is a legally enforceable right tooffsettherecognisedamountsandthereisanintentiontosettleonanetbasis,orrealisetheassetandsettletheliabilitysimultaneously.
i. Employee benefits – pension obligations The Bank operates a Defined Benefit Plan
(thePlan) for all its eligible employees. TheassetsofthePlanareheldinaseparatetrusteeadministered plan.
ADefinedBenefitPlanisapensionplanthatdefinestheamountofpensionbenefitthatanemployeewillreceiveonretirement,usuallydependent on one ormore factors such asage,yearsofserviceandcompensation.Thepensionbenefitisbasedonthefinalsalaryoftheemployee.
An asset or liability recognised in theStatementofFinancialPosition inrespectofthePlan is thepresentvalueof thedefinedbenefit obligation at the Statement ofFinancial Position date less the fair value ofthe Plan’s assets, togetherwith adjustmentsforunrecognisedactuarialgainsorlossesandpast service costs.
The Plan’s accounting costs are assessed onthebasisoftheProjectedUnitCreditMethod.
| Central Bank of Trinidad and Tobago Annual Report 2010 30
made to the lessorbywayofpenalty isrecognisedasanexpenseintheperiodinwhichterminationtakesplace.
ii. Finance leases (as lessor) Where theBankgrants long-term leases
onproperty,thelandandthebuildingaretreatedasafinancelease.Thesefinanceleases are valued at the lower of thegross investment lessprincipalpaymentsandanyprovisions inthe lease,andthepresent value of the minimum leasepaymentsreceivableattheBalanceSheetdateandareshownasreceivable.Leaseincomeisrecognisedoverthetermofthelease using the net investmentmethod,whichreflectsaconstantperiodicrateofreturn.
l. Intangible assets Intangible assets are acquired computer
software programmes. These are capitalisedon thebasis of the cost incurred to acquireandbringtousethespecificsoftware.Thesecosts are amortised using the straight-linemethodon thebasisof theexpectedusefullife of five years. Costs associated withmaintaining computer software programmesarerecognisedasanexpenseasincurred.
m. Property, plant & equipment Fixed Assets are recorded at their cost of
acquisition less accumulated depreciation.Additions or improvements to assets duringtheyear,whichsignificantlyaddtothevalueof, or extend the useful life of such assets,arecapitalisedaspartofthecost.Whenanasset is retired or sold, any gain or loss ondisposal isdealtwith through theStatementofComprehensiveIncome.
Artwork, which is classified under FixturesandFittings,iscarriedinitiallyatcost.Everysubsequent year, Artwork will be carried atits revalued amount, being its fair value at
the date of revaluation. Appraisals will beperformed every three years by a qualifiedvaluer. The artwork was last revalued inSeptember 2010.
DepreciationiscalculatedontheStraightLineMethodtowritedownthecostoftheassetsto their residual values over their estimatedusefullivesatthefollowingrates:
Furniture - 10%perannum(pa)
Fixturesandfittings - 10%pa
Motorvehicles - 331/3%pa
Machineryandequipment - 20%pa
Computerhardware - 331/3%pa
Computersoftware - 20%pa
Leaseholdproperties - overtheperiodofthelease
Building - 2.5%pa
BuildingImprovements - 10%pa
n. Taxation Section55(1)oftheCentralBankActexempts
the Bank from the provisions of any Actrelatingto incometaxation,companytaxationandfromthepaymentofstampduty.
Itssubsidiary,CBServicesLimited,issubjectto corporation tax at a rate of 25% onchargeable income in accordance with theCorporationTaxAct.
Deferred taxation arises from temporarydifferences between the tax base of assetsand liabilities, and their carrying amountsin the Financial Statements. The principaltemporarydifferencesarisefromdepreciationon Property, Plant and Equipment, andrevaluationofotherassets.
CBServicesLimitedcurrentlydoesnothaveany temporary difference and as such noadjustmentfordeferredtaxationisrequired.
o. Provisions The Bank has a policy of providing for all
knownandforeseeablelossesintheaccounts
Notes to Consolidated Financial Statements
Central Bank of Trinidad and Tobago Annual Report 2010 | 31
Notes to Consolidated Financial Statements
and has adopted a prudent approach toprovisioning. Provisions shown on theStatement of Financial Position include theForeignCurrencyTranslationReserves,GoldRevaluation Reserves and Market ValueRevaluationReserves.
p. Capital The entire capital of the Bank is held by
the Government of Trinidad and Tobago.Provision is made in Section 34(5) of theCentral Bank Act, for the Paid-up portionof the authorised capital of the Bank to beincreasedeachyearbyanamountofnotlessthan15per cent of the amount tobepaidintotheConsolidatedFund,untilthePaid-upportionoftheAuthorisedCapitalisequaltotheAuthorisedCapital.On21August,2007theAuthorisedCapitaloftheBankwasincreasedto$800million. Asat30September,2010thePaid-upCapitalwas$800million.
q. Reserves Provision is made in Sections 35(3) and
35(6) of the Central Bank Act for the BanktoplaceintheGeneralReserveFundortheSpecialReserveFunds,orinboth,anamountnot exceeding ten (10) per cent of theNetsurplus of the Bank for each financial year,untiltheGeneralReserveFundisequaltotheAuthorisedCapital.At30September,2010,theGeneralReserveFund increasedby$53millionto$588million.
r. Revenue Recognition i. Interest income and interest expense Interest income and expense are
recognised in the Statement ofComprehensive Income for all interestbearinginstrumentsonanaccrualsbasis.Interestincomeincludescouponsearnedonfixedincomeinvestmentsandaccrueddiscount and premium on treasury billsandotherdiscountinstruments.
ii. Dividend income
Dividendincomeisrecognisedwhentherighttoreceivepaymentisestablished.
iii. Other income and expenses Allothersignificant itemsof incomeand
expenditure are accounted for on theaccrualsbasis.
3. Financial risk management
Operational risk is the risk of loss in bothfinancial andnon-financial terms resulting fromhumanerrorandthefailureofinternalprocessesandsystems.
Operational riskmanagement includesbank-widecorporate policies which describe the standardofconductrequiredofstaffandspecificinternalcontrol systems designed around the particularcharacteristicsofvariousbankactivities.
In addition, the Bank has responsibility for themanagement of the official foreign currencyreserves of the country. This includes thedeterminationof theamountofriskwhichmaybetakeninthemanagementoftheportfolio.Itseekstomitigaterisksintheportfolioasfollows:
Creditrisk TheBanktakesonexposuretocredit riskwhichis the risk thatacounterpartywillbeunable topayamountsinfullwhendue.
Credit risk ismitigated by the establishment ofcounterparty concentration limits and by theestablishmentofminimumrating standards thateachcounterpartymustattain.
Currencyrisk TheBanktakesonexposuretofluctuationsintheprevailing foreigncurrencyexchangerateon itsfinancial position and cash flows.Managementseekstomitigatecurrencyriskbypartlyaligningthecurrencycompositionoftheforeignportfolio
| Central Bank of Trinidad and Tobago Annual Report 2010 32
tothesettlementoftradeandexternaldebt.
Interestraterisk The Bank invests in securities and maintainsdemanddepositaccountsasapartofitsnormalcourseofbusiness.Interestrateriskistheriskofloss arising from changes in prevailing interestrates.TheBankmanagesthisriskbyestablishingdurationlimitsfortheportfolio.
Liquidityrisk TheBankisexposedtodailycallsonitsavailablecash resources fromovernight deposits, currentaccountsandmaturingdeposits.
Liquidity risk is managed by the grouping ofreserves into several tranches according toliquidity requirements, and defining specificassetclassesanddurationlimitsforeachtranche,consistentwithitsdefinedliquidityobjectives.
Fair value is the arm’s length consideration forwhichanassetcouldbeexchangedoraliabilitysettled between knowledgeable,willing parties,who are under no compulsion to act and isbestevidencedbyaquotedmarketpriceifoneexists.
Fair value of securities is determined using theParMethodwheredirectmarketquotesoftheseinstrumentsexist.Thispriceisusedasthebasisforthemarktomarketvaluationoftheholdings.
Localcurrency-balanceswithbanksThisbalanceiscomprisedmostlyofchequedepositsmade by the Government of the Republic ofTrinidad and Tobago which are sent for clearanceatthecommercialbanks.Thesearesettledagainstcommercial banks’ reserves balances on the nextworkingday.
Notes to Consolidated Financial Statements
4. Cash and cash equivalents
CurrencyonhandBalanceswithbanksRepurchaseagreementsFixed Deposits
Represented by:
Foreign currency - cash and cash equivalentsCurrencyonhandBalanceswithbanksRepurchaseagreementsFixed Deposits
Local currency - cash and cash equivalentsCashonhandBalanceswithbanks
Sept 2010$’000
Sept 2009$’000
6,6641,090,6232,101,63323,031,52626,230,446
914153,2962,101,63323,031,52625,287,369
5,750937,327943,077
26,230,446
9,524772,3472,777,33725,217,87528,777,083
89087,556
2,777,33725,217,87528,083,658
8,634684,791693,425
28,777,083
Central Bank of Trinidad and Tobago Annual Report 2010 | 33
Notes to Consolidated Financial Statements
5. Investments
Sept 2010$’000
Sept 2009$’000
Foreign currency investmentsHeldtomaturityAvailable for sale FairvaluethroughprofitorlossLoansandadvances
Local currency investmentsInvestmentsinrelatedenterprises(Note6)Available for sale - LocalsecuritiesLoansandadvances
Total investments
Held to maturityCost
Available for sale investments Foreign currencyCost(Discount)/premiumAppreciationinMarketValueAppreciationinForeignCurrency
Local currencyCost(Discount)
Total available for sale investments
298,093 34,074,320 441 153,476 34,526,330
56,382
23,940 1,965,269 2,045,591 36,571,921
298,093
33,504,323 (96,203) 229,771 436,429 34,074,320
24,113 (173) 23,940
34,098,260
252,752 37,585,703 5,231 147,206 37,990,892
56,382
23,000 226,354 305,736 38,296,628
252,752
36,749,828 (159,662) 440,737 554,800 37,585,703
23,001 (1) 23,000
37,608,703
Sept 2010$’000
Sept 2009$’000
441
347,818 (194,342) 153,476
2,159,672 (194,403) 1,965,269
2,118,745
25,422 30,960 56,382
36,571,921
Fair value through profit or lossCost
Loans and advancesForeign currencyCostProvisionfordoubtfuldebts
Local currency CostProvisionfordoubtfuldebts
Total loans and advances
Investments in related enterprises CostAppreciationinMarketValue
Total Investments
5,231
334,701 (187,495) 147,206
296,403 (70,049) 226,354
373,560
25,422 30,960 56,382
38,296,628
| Central Bank of Trinidad and Tobago Annual Report 2010 34
The Central Bank has an interest in thefollowing related enterprises to help promotethe development of the country’s financialinfrastructure:
The Bank also has a related interest in the Office
of the Financial Services Ombudsman (OFSO).
The main objectives of the OFSO are to receive
complaints arising from the provision of financial
services to individuals and small business, and
to facilitate the settlement of these complaints.
The remuneration of the Financial Services
Ombudsman is met by the Bank while the day
to day operations of the office are funded by the
financial institutions.
6. Investment in related enterprises TheseFinancialStatementsincludethefollowingrelatedpartytransactionsduringtheyear:-
Sept 2010$’000
Sept 2009$’000
3,5521,584264
5,400
74811,29112,039
56,382 808
4,924
Income:DividendIncomeRentalIncomeOtherIncome
ExpenditureSalariesandrelatedexpenditureOtherexpenses
Ending period balances InvestmentsinrelatedenterprisesReceivables from related enterprisesPayablestorelatedenterprises
3,5521,331161
5,044
8753,0003,875
56,382 4,719
3,888
Sept 2010$’000
Sept 2009$’000
2,5001,000
33,36018,600
92256,382
Investments in related enterprisesTrinidadandTobagoUnitTrustCorporationDepositInsuranceCorporationHomeMortgageBankFirstCitizensBankLimitedTrinidadandTobagoInterbankPaymentsSystem
2,5001,000
33,36018,600
92256,382
Notes to Consolidated Financial Statements
Central Bank of Trinidad and Tobago Annual Report 2010 | 35
Notes to Consolidated Financial Statements
Sept 2010$’000
Sept 2009$’000
49,838 (61,506) (11,668)
7.75%7.70%
7.50%
Return on plan assetsExpectedreturnonplanassetsActuarial(loss)/gainonplanassetsActualreturnonplanassets
Actuarial assumptionsDiscountrateExpectedreturnonplanassetsProjectedfuturerateofsalaryincrease
ValueofPensionSchemeAsset
Note
7. Pension assets
Sept 2010$’000
Sept 2009$’000
Note
15
42,341 (41,392) 949
6.25%6.25%
6.00%
403,503 (548,061) (144,558) (95,344) (239,902)
(238,250)
2,186 (3,838) (1,652)
(239,902)
11,738 22,989 (42,341) - 9,800 - 2,186
302,885 (552,543) (249,658) 11,408 (238,250)
(214,135)
(20,919) (3,196) (24,115)
(238,250)
8,955
21,242 (49,838) 17,763 - (19,041) (20,919)
Defined benefit obligationFairvalueofassets
Unrecognisedgain/(loss)IAS19netdefinedliability/(asset)
Reconciliation of opening and closing defined benefitOpeningdefinedbenefitasset
Increase in pension assetsPensioncostBankcontributionpaid
Closingdefinedbenefitasset
Amounts recognised in the earnings statementCurrentservicecostInterestondefinedbenefitobligationExpectedreturnonplanassetsAmortised net gainPastservicecostMovementinun-utlisedassetsNetpensioncost
BasedonMarketValueatBalanceSheetDate
| Central Bank of Trinidad and Tobago Annual Report 2010 36
Sept 2010$’000
Sept 2009$’000
173,220-
173,220
80,9871,976,813
5,3934
7312,063,928
154,1456,589
160,734
57,7691,842,482
4,115207,801
162,112,183
Foreign receivablesForeign InterestReceivableOtherReceivables
Accounts receivable and prepaid expensesInterestreceivableondomestic investmentsOtherreceivablesPrepaymentsSuspenseaccountsValueAddedTax
8. Receivables and prepaid expenses
Notes to Consolidated Financial Statements
Sept 2010$’000
Sept 2009$’000
13,034
8,195
951
6,694
6,404
303
333
86,768122,682
BancoLatinoAmericanoDeExportaciones
CaribbeanDevelopmentBank
CaribbeanInformationandCreditRatingServicesLtd.
InternationalAmericanDevelopmentBank
InternationalBankforReconstructionandDevelopment
InternationalDevelopmentAssociation
InternationalFinancialCorporation
InternationalMonetaryFund
9. Subscriptions to International Financial Institutions
12,985
8,194
948
6,694
86,087
5,551
333
3,179,1143,299,906
TheBankactsas financialagent for theGORTTwith these international financial institutions. Inprevious years the Bank showed only the cashcontributionsmade to theseorganisations. Thisfinancial year, in order to show a fairer view,theseamountshavebeenadjustedtoincludetheportionoftheGovernment’scontributionsissuedto theseorganisations in the formofPromissoryNotes.
Central Bank of Trinidad and Tobago Annual Report 2010 | 37
10. Other Assets
Sept 2010$’000
Sept 2009$’000
LeaseAssetStocksofnotesandcoinsConsumables
186,600120,0061,517
308,123
Lease Asset In 1995 the Bank entered into a thirty-yearfinance lease agreement with the Governmentof theRepublic of Trinidad andTobago for thepurchaseoftheMinistryofFinanceBuilding.
Sept 2010$’000
Sept 2009$’000
61,27634,04095,316
NotesCoins
76,80343,203
120,006
Stocks of notes and coins
Notes to Consolidated Financial Statements
175,810 95,316
1,466272,592
Sept 2010$’000
Sept 2009$’000
186,600
10,790
57,276
118,534
186,600
175,810
11,006
58,421
106,382
175,810
Present value of the minimum lease payments
Broken out as follows:
Notlaterthanoneyear
laterthanoneyearandnotlaterthanfiveyears
laterthanfiveyears
Present value of the minimum lease payments
| Central Bank of Trinidad and Tobago Annual Report 2010 38
11. Property, plant and equipment
As at 30 September 2010
Net book valueBalanceb/fwd01Oct2009TransfersAdditionsDisposalsRevaluationadjustmentDepreciationfortheperiodBalancec/fwd
Representedby:
CostAccumulateddepreciation
As at 30 September 2009
Net book valueBalanceb/fwd01Oct2008TransfersAdditionsDisposalsDepreciationfortheperiodBalancec/fwd
Representedby:
CostAccumulateddepreciation
174,272 2,407 1,566 - - (13,427)164,818
403,991(239,173)164,818
178,561 8,735 114 (3) (13,135)174,272
400,018(225,746)174,272
Land &Building $’000
LeaseholdProperty
$’000
Machinery &
Equipment$’000
ComputerEquipment
$’000
Furniture,Fixture &Fittings $’000
Capitalwork inprogress
$’000
Total
$’000
267 - - (58) - (125) 84
298 (214) 84
99 700 4 - (536) 267
1,002 (735) 267
20,390 5,830 1,736 - - (11,222) 16,734
88,036 (71,302) 16,734
28,560 2,283 1,357 (3) (11,807) 20,390
82,531 (62,141) 20,390
14,187 2,159 3,675 - - (7,724) 12,297
61,955 (49,658) 12,297
14,619 1,007 5,733 - (7,172) 14,187
56,120 (41,933) 14,187
26,002 429 4,186 (63) 2,411 (2,779) 30,186
46,916 (16,730) 30,186
23,463 3,309 1,678 (15) (2,433) 26,002
40,386 (14,384) 26,002
16,855 (10,825) 3,395 - - - 9,425
9,425 - 9,425
7,577 (16,034) 25,548 (236) - 16,855
16,855 - 16,855
251,973 - 14,558 (121) 2,411 (35,277) 233,544
610,621 (377,077) 233,544
252,879 - 34,434 (257) (35,083) 251,973
596,912 (344,939) 251,973
Notes to Consolidated Financial Statements
Central Bank of Trinidad and Tobago Annual Report 2010 | 39
12. Demand liabilities
11,13037,67748,807
4,161,494158,705
12,949,007
404,261
48,120
7,216,4474,300,139
415,67229,653,845
Sept 2010$’000
RestatedSept 2009
$’000
11,92671,24283,168
4,567,902166,881
16,145,799
381,973
59,417
2,092,8635,218,876
312,70828,946,419
Demand liabilities - foreignForeign deposits Governmentspecialaccounts
Demand liabilities - localNotesincirculationCoinsincirculationDepositsbycommercialbanksDepositsbynon-bankingfinancialinstitutionsStatutorydeposits- insurancecompaniesDepositsbygovernmentandgovernment agenciesDepositsbyothercurrentaccountsDepositsbyregionalandinternationalinstitutions
Deposits by financial institutions Thestatutoryreserverequirementforcommercialbanks remained at 17 per cent during thefiscal year 2009/2010. As a result the averagemonthlycashbalancesheldbycommercialbanksincreasedby1.7percent.Thecommercialbankscontinuedtoholdasecondaryreserveof2percentwhichwasremuneratedat350basispointsbelowthe‘repo’rate.
Thereserverequirementfornon-bankingfinancialinstitutions remained unchanged at 9 per cent.Additionally, commercial banks held variousspecial deposits/bills as part of the monetarypolicyof theBank.These instrumentscomprisethefollowing:
•Adepositof$1.5billionwhichmatureson28December2010.
•Athree-monthCentralBankbilloffacevalue$500millionissuedinNovember2009.
13. Accounts payable
Sept 2010$’000
RestatedSept 2009
$’000
5,1248,594,0918,599,215
74,60237,7144,65925,162
23,356,1191,970,315
25,468,571
Accounts payable - ForeignBilateralaccountsPendingTrades
Accounts payable - LocalTradepayablesandaccruedchargesInterestpayableUnclaimedmoniesGovernmentspecialaccountsBlockedaccountsOtherpayables
14. Provisions The Bank has adopted a prudent approach
for provisioning in order to maintain adequatecapacity to fulfil its functions. This accountingtreatmentreflectsthelimitationsonthecreationofreservessetoutinSection35oftheCentralBankAct. TheAct specifies the termsandconditionsgoverningGeneralandSpecialReservefundsandthe creation of provisions for bad and doubtfuldebts,depreciationinassets,contributionstostaffpensionbenefitsandothercontingencies,beforepaymentofthenetsurplusforthefinancialyeartotheGovernment.ThisisadeparturefromthedefinitionoutlinedinIAS37Provisions,ContingentLiabilitiesandContingentAssets. TheprovisionsshownonthefaceoftheBalanceSheetcomprise:
Notes to Consolidated Financial Statements
4,6978,537,2468,541,943
42,23468,7014,75125,593
23,637,8951,799,319
25,578,493
195,0981,175,171238,250403,266
2,011,785
Sept 2010$’000
Sept 2009$’000
Gold reserveForeigncurrencyexchangeratereservesPensionreserveRevaluationreserveoninvestments
Provisions
311,9534,158,571
239,902694,119
5,404,545
| Central Bank of Trinidad and Tobago Annual Report 2010 40
17. Other operating expenses
Sept 2010$’000
15. Income from foreign currency assets
Sept 2010$’000
Sept 2009$’000
732,306 6,716
11,413 (104,430) 248,144 894,149
(29,047) (143,895) (172,942)
721,207
Income from Foreign Currency AssetsInterestonUnitedStatesDollarBalances&SecuritiesInterestonSterlingBalances&SecuritiesInterestonotherforeignbalances&securitiesCurrency(Losses)/GainsrealisedGainsfromfairvaluechanges
Expenses from Foreign Currency AssetsInvestmentExpensesLossesfromfairvaluechanges
Net income from foreign currency assets
981,607 26,764
43,154 (1,283) 406,701 1,456,943
(26,195) (56,091) (82,286)
1,374,657
Sept 2009$’000
11,2912,8258,3493,9822,24417,280
12118,6683,6112,888
3,0002,9288,2134,1432,2067,15217
18,4383,6694,821
NationalFinancialLiteracyProgrammeContributionsAdvertisingandpublicrelationsComputerexpensesElectricityInsuranceLegalfees&settlementsLossondisposalofassets(seeNote10)Maintenance costPrinting&stationeryProfessionalfees
Notes to Consolidated Financial Statements
7,72458,2797,947
73,950
24,115176,866
1,5423,5528,4572967,639
222,467
16. Interest and other Income from local currency assets
Sept 2010$’000
Sept 2009$’000
19,761257,7789,044
286,583
1,6522,255
1,0983,5528,821
1105,971
23,459
Interest IncomeInvestmentsLoansOther
Other IncomeIncreaseinpensionassets(Note7)GeneralEarningsIncomefromInternationalMonetaryFundDividendsFeeschargedtofinancialinstitutionsProfitonsaleofassetsOther
GeneralEarningsfor2009includeanamountof$168millionrelatingtotheclosureoftheBuildingFund.
Other operating expenses include:
Central Bank of Trinidad and Tobago Annual Report 2010 | 41
18. Taxation
19. Capital commitments There was $1,204,439 in outstanding
commitments for capital expenditure as at30 September 2010 (30 September, 2009–$5,655,543).
20. Leasehold obligations – operating leases
a. Operating leases where the Bank is the lessor The Bank had entered into lease
arrangementsin2010withthreecompaniesfor offices located in the Bank’s building.The tenants are charged amonthly rentaland service fees based on the squarefootageoccupied.
b. Operating leases where the Bank is the lessee TheBankalsoleasesequipmentandpremises
under operating lease arrangements. Theleaseshavevaryingterms,escalationclausesandrenewalrights.
Sept 2010$’000
Sept 2009$’000
7
531,751-
531,75177
7
1,157,771-
1,157,77177
BusinessLevy
Taxpaid/payablebytheBankwascalculatedasfollows:
NetsurplusCorporationtax@25%IncomenotsubjecttotaxBusinessLevyTaxCharge
21. Comparative figures The restated Statement of Financial Position
for the year ended 30 September 2009resultedfromre-classificationofsomeitemsinordertoachieveaclearerormoretransparentpresentation.
MovementSept 2009
$’000
(4,697) 8,541,943
(8,537,246) -
LIABILITIESForeign currency liabilitiesDemand liabilities - foreignAccountspayable
Local currency liabilitiesAccountspayableNet restatement of liabilities
Restatement of Statement of Financial Position Items as at 30 September 2009
Notes to Consolidated Financial Statements
| Central Bank of Trinidad and Tobago Annual Report 2010 42
22. National Financial Literacy Programme InJanuary2007,theBanklaunchedtheNational
FinancialLiteracyProgramme.Themainobjectivesoftheprogrammeareto:
• sensitisethepopulationaboutthesignificanceofpersonalfinancialplanning,budgetingandmanagement;
• provide the public with the tools and skillsnecessarytoenablethemtoconfrontfinancialissueswithagreaterdegreeofconfidenceandknowledge;and
• develop the awareness and consciousness ofthe public in general about the benefits andrisksofthefinancialproductsandservices.
7,048
7,048
251
5,685
2,458
718
414
9,526
(2,478)
(2,000)
(4,478)
4,486
(8)
4,478
Sept 2010$’000
Sept 2009$’000
11,737
11,737
98
4,513
1,999
517
-
7,127
4,610
(4,478)
132
-
(132)
(132)
Receipts
Contributions Received
Total Receipts
Payments
Administrative Cost
Advertising & Printing Material
Consultancy & Lecture Fees
Salaries
Other - MIF & Website
Development
Total Expenditure
Net receipts over payments/
(payments over receipts) for the
period
Balance brought forward
Balance carried forward
Represented in the Financial
Statements by:
Accounts Receivable
Bank Account
Notes to Consolidated Financial Statements
Central Bank of Trinidad and Tobago Annual Report 2010 | 43
23. Capital
Sept 2010$’000
Sept 2009$’000
800,000
800,000
800,000
800,000
Authorised capital
Paid-up capital
24. Key Management Compensation Keymanagementpersonnel are thosepersons
havingauthorityandresponsibilityforplanning,directing, and controlling the key activities ofthe Bank, directly or indirectly, including allexecutives,senior,middleandjuniormanagers.
Sept 2010$’000
Sept 2009$’000
34,888----
828
26,268----
969
Short-termemployeebenefitsPost-employmentbenefitsOtherlong-termbenefitsTermination benefitsEquitycompensationbenefitsDirectors’ Fees
25. Contingent liabilities Therewereseverallitigationmattersoutstanding
asat30September2010amounting to$19.8million(2009-$4.3million).
Notes to Consolidated Financial Statements
| Central Bank of Trinidad and Tobago Annual Report 2010 44
26. CL Financial Group Matter During January 2009, representatives of CL
FinancialLimited(CLF)metwiththeBankandtheMinistryofFinancerequestingurgentliquiditysupport for CLICO Investment Bank Limited(CIB), CLICO (Trinidad) Limited (CLICO) andBritishAmericanInsuranceCompany(Trinidad)Limited (BAT). On 30 January 2009, in aneffort toprotect the interestofdepositors andpolicyholders, theMinisterof Financeenteredinto a Memorandum of Understanding withCLF for the provision of liquidity support forCIB,CLICOandBATundercertainconditions.
On31January2009theBankassumedcontrolofCIB,underSection44DoftheCentralBankAct(theAct)andconsequenttoanamendmenttotheAct,italsoassumedcontrolofCLICOandBATon13February2009.
Asa resultof theseactions theBankcurrentlyhas in its Financial Statements the followingassetsandliabilities:
AssetsAdvancestoGovernmentreCLICOand BATAmountsrecoverablefromCLFreCIBLiabilities
LiabilitiesPromissoryNotestoFirstCitizensBankLimitedreCIBLiabilities
Notes to Consolidated Financial Statements
Sept 2010$’000
Sept 2009$’000
1,709,094
1,770,4273,479,521
1,770,427
-
1,866,1651,866,165
1,866,165
Central Bank of Trinidad and Tobago Annual Report 2010 | 45
Non-Current$’000
-
34,007,761-
3,299,9062,609,900 39,917,567
- 300,894239,902
12,305271,125
233,544 1,057,770
40,975,337
83,1683,042,088 8,594,091 11,719,347
15,918,64823,472,820
- 5,404,545
44,796,013
800,000588,0499,406
1,397,45557,912,815
27. Statement of Financial Position – Current/Non-Current distinction
ASSETS
Foreign currency assetsForeigncurrencycashandcashequivalentsForeigncurrencysecuritiesForeign receivablesSubscriptionstointernationalfinancialinstitutionsInternationalMonetaryFund-HoldingsofSpecialDrawingRights
Local currency assetsLocalcurrencycashandcashequivalentsLocalinvestmentsPensionassetAccountsreceivableandprepaidexpensesOtherassetsProperty,plantandequipment
TOTAL ASSETS
LIABILITIESForeign currency liabilitiesDemand liabilities - foreignInternationalMonetaryFund-AllocationofSpecialDrawingRightsAccountsPayable
Local currency liabilitiesDemand liabilities - localAccountspayableProvisionfortransferofsurplustogovernmentProvisions
CAPITAL AND RESERvESCapitalGeneral ReserveRetainedEarnings
Current$’000
25,287,3693,983,131173,220
--
29,443,720
943,0774,842
-2,051,6231,467
- 3,001,009
32,444,729
- -
5,124 5,124
13,027,7711,995,751478,605
- 15,502,127
----
15,507,251
Sept 2010
Total$’000
25,287,36937,990,892173,2203,299,9062,609,900 69,361,287
943,077305,736239,9022,063,928272,592
233,544 4,058,779
73,420,066
83,1683,042,0888,599,215 11,724,471
28,946,41925,468,571478,605 5,404,545 60,298,140
800,000588,0499,406
1,397,45573,420,066
Notes to Consolidated Financial Statements
| Central Bank of Trinidad and Tobago Annual Report 2010 46
Non-Current$’000
-31,097,670
-122,6822,678,803
33,899,155
- 2,014,300238,2502,094,914297,333251,973
4,896,770 38,795,925
48,8073,122,392
-3,171,199
11,853,2699,597,802
- 2,011,785
23,462,856
800,000534,8719,445
1,344,31627,978,371
27. Statement of Financial Position – Current/Non-Current distinction (cont’d)
ASSETS
Foreign currency assetsForeigncurrencycashandcashequivalentsForeigncurrencysecuritiesForeign receivablesSubscriptionstointernationalfinancialinstitutionsInternationalMonetaryFund-HoldingsofSpecialDrawingRights
Local currency assetsLocalcurrencycashandcashequivalentsLocalinvestmentsPensionassetAccountsreceivableandprepaidexpensesOtherassetsProperty,plantandequipment
TOTAL ASSETS
LIABILITIESForeign currency liabilitiesDemand liabilities - foreignInternationalMonetaryFund-AllocationofSpecialDrawingRightsAccountspayable
Local currency liabilitiesDemand liabilities - localAccountspayableProvisionfortransferofsurplustogovernmentProvisions
CAPITAL AND RESERvESCapitalGeneral ReserveRetainedEarnings
Current $’000
28,083,6583,428,660160,734
--
31,673,052
693,42531,291
-17,269
10,790-
752,775 32,425,827
- -
8,541,943 8,541,943
17,800,57615,980,691920,171
- 34,701,438
----
43,243,381
RestatedSept 2009
Total$’000
28,083,65834,526,330160,734
122,6822,678,803 65,572,207
693,4252,045,591238,250
2,112,183308,123251,973
5,649,545 71,221,752
48,8073,122,392
8,541,94311,713,142
29,653,84525,578,493920,171
2,011,785 58,164,294
800,000534,8719,445
1,344,31671,221,752
Notes to Consolidated Financial Statements
Central Bank of Trinidad and Tobago Annual Report 2010 | 47
28,083,65834,526,330
160,734122,6822,678,803 65,572,207
693,4252,039,591238,2502,112,183308,123
251,973 5,643,545
71,215,752
48,8073,122,3928,541,943
11,713,142
29,653,84525,581,938920,1712,011,785
58,167,739
800,000534,871
1,334,87171,215,752
28. Parent TheFinancialStatementsoftheCentralBankofTrinidadandTobagoarepresentedbelow:
ASSETS
Foreign currency assetsForeigncurrencycashandcashequivalentsForeigncurrencysecuritiesForeign receivablesSubscriptionstointernationalfinancialinstitutionsInternationalMonetaryFund-HoldingsofSpecialDrawingRights
Local currency assetsLocalcurrencycashandcashequivalentsLocalinvestmentsPensionassetAccountsreceivableandprepaidexpensesOtherassetsProperty,plantandequipment
TOTAL ASSETS
LIABILITIESForeign currency liabilitiesDemand liabilities - foreignInternationalMonetaryFund-AllocationofSpecialDrawingRightsAccountsPayable
Local currency liabilitiesDemand liabilities - localAccountspayableProvisionfortransferofsurplustogovernmentProvisions
CAPITAL AND RESERvESCapitalGeneral Reserve
TOTAL LIABILITIES, CAPITAL AND RESERvES
25,287,36937,990,892173,220
3,299,9062,609,900
69,361,287
943,077299,736
239,9022,063,928
272,592233,544
4,052,779 73,414,066
83,1683,042,0888,599,215
11,724,471
28,946,41925,471,977478,605
5,404,545 60,301,546
800,000588,049
1,388,04973,414,066
RestatedSept 2009
$’000Sept 2010
$’000
Statement of Financial Position As at 30 September 2010
Notes to Consolidated Financial Statements
| Central Bank of Trinidad and Tobago Annual Report 2010 48
750,435 (29,048) 721,387 (104,430) 248,144 (143,895) 104,249
721,206
286,583 1,587 23,459 311,629 128,544
1,161,379
52,863 157,656 248,712 806 35,278 134,281 - 629,596
531,783
531,783
1,051,525 (26,195) 1,025,330 (1,283) 406,701 (56,091) 350,610
1,374,657
73,950 1,364 222,167 297,481 141,010
1,813,148
55,828 116,468 349,557 940 35,083 97,772 - 655,648
1,157,500
1,157,500
Income from foreign currency assetsInterestincomeInvestmentexpense
(Loss)/gainfromcurrencytranslationsGainfromfairvaluechanges(Loss)fromfairvaluechanges
Income from local currency assetsInterestincomeRental income Otherincome
Decrease in provisions
Total income
Operating expensesPrintingandmintingofcoinsSalaries and related expensesInterestpaidDirectors’ feesDepreciationOtheroperatingexpensesIncreaseinprovisionsTotal operating expenses
Net surplus for the year
Total comprehensive income for the year
Sept 2009$’000
Sept 2010$’000
Statement of Comprehensive IncomeFor the year ended 30 September 2010
Notes to Consolidated Financial Statements
28. Parent cont’d
Central Bank of Trinidad and Tobago Annual Report 2010 | 49
28. Parent cont’d
Balance as at 1 October 2008NetsurplusfortheperiodTransferofsurplustoConsolidatedFundTransfer to general reserveTransfertopaid-upcapitalBalance as at 30 September 2009
Balance as at 1 October 2009NetsurplusfortheyearTransferofsurplustoConsolidatedFundTransfer to general reserve
Balance as at 30 September 2010
GeneralReserves
$’000
Issued andFully Paid Up Capital
$’000
Statement of Changes in EquityFor the year ended 30 September 2010
RetainedEarnings
$’000
Total
$’000
761,874---
38,126800,000
800,000-
--
800,000
428,394--
106,477-
534,871
534,871-
-53,178
588,049
- 1,157,500(1,012,897) (106,477) (38,126) - - 531,783 (478,605) (53,178) -
1,190,268 1,157,500 (1,012,897) - - 1,334,871
1,334,871 531,783 (478,605) - 1,388,049
Notes to Consolidated Financial Statements
| Central Bank of Trinidad and Tobago Annual Report 2010 50
28. Parent (cont’d)
Cash flows from operating activitiesNetsurplusfortheyearbeforetaxationAdjustmentsfor:DepreciationNetloss/(gain)ondisposaloffixedassetsInterestincomeInterestexpenseDividend income ProvisionsRevaluationofArtworkBuildingfundGold reservesForeigncurrencydifferencesinmonetaryassets&liabilitiesCash outflows before changes in operating assets and liabilitiesChanges in operating assets and liabilitiesDecrease/(Increase)inaccountsreceivable&prepaidexpensesDecrease/(Increase)inotherassets(Increase)inpensionasset(Decrease)/IncreaseinaccountspayableandotherliabilitiesNet cash flow (used in)/from operations
Cash flows from investing activitiesPurchaseofproperty,plantandequipmentProceedsfromsaleofproperty,plantandequipmentNetpurchaseofinvestments/proceedsfromsaleofinvestmentsNetrepaymentofloansandadvancesInterestreceivedDividends receivedInterestpaid(Decrease)/IncreaseinInternationalMonetaryFundHoldingsofSpecialDrawingRightsPaymenttoConsolidatedFundNet cash flow from/(used in) investing activities
Cash flows from financing activitiesPurchaseofsharesininternationalfinancialinstitutionsLeasepaymentNet cash flow (used in)/from financing activities
Net (decrease) in cash and cash equivalentsCash and cash equivalents, beginning of yearCash and cash equivalents, end of year
Sept 2009$’000
Sept 2010$’000
Statement of Cash flowsFor the year ended 30 September 2010
531,783 35,278 11 (1,007,969) 248,712 (3,552) (128,544) (2,411) - 116,855 61,769 (148,068) 77,747 24,741 (1,652) (694,768) (742,000)
(14,558) 110 (251,251) 1,869,541 965,675 3,552 (279,699) (11,402) (920,171) 1,361,797
(3,177,224) 10,790 (3,166,434)
(2,546,637) 28,777,083 26,230,446
Notes to Consolidated Financial Statements
1,157,500 35,083 (279) (1,099,279) 349,557 (3,252) (141,010) - (175,656) 57,034 (201,625) (21,927) (1,969,224) (36,379) (24,115) 5,804,323 3,752,678
(34,434) 536 (5,942,795) (1,839,902) 1,151,554 3,252 (336,550) 9,484 (1,078,295) (8,067,150)
(1,221) 10,579 9,358
(4,305,114) 33,082,197 28,777,083
Central Bank of Trinidad and Tobago Annual Report 2010 | 51
Appendices
| Central Bank of Trinidad and Tobago Annual Report 2010 52
Appendix
Central Bank of Trinidad and Tobago Annual Report 2010 | 53
2007
2008
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
End ofMonth
Notes(Old TT)
Notes(Republic)
Total Notesin Circulation Coins
TotalCurrency in Circulation
19,087
19,087
19,044
19,044
19,044
19,044
19,044
19,044
19,044
19,044
19,044
19,044
19,044
19,044
3,278,686
3,812,333
4,091,271
4,228,073
4,675,787
4,171,381
4,254,227
4,477,434
4,353,198
4,485,724
4,512,050
4,569,174
4,507,243
4,543,137
3,297,729
3,831,377
4,110,315
4,247,117
4,694,831
4,190,425
4,273,271
4,496,478
4,372,242
4,504,768
4,531,094
4,588,218
4,526,287
4,562,181
137,005
149,916
159,482
160,454
161,367
161,419
161,559
162,272
162,887
163,728
164,560
165,352
166,060
166,862
3,434,734
3,981,293
4,269,797
4,407,571
4,856,198
4,351,844
4,434,830
4,658,750
4,535,129
4,668,496
4,695,654
4,753,570
4,692,347
4,729,043
Source:CentralBankofTrinidadandTobago.
TABLE A.1CURRENCY IN CIRCULATION2007-2010(Dollars Thousands)
| Central Bank of Trinidad and Tobago Annual Report 2010 54
Source:CentralBankofTrinidadandTobago.
1 IncludesExchequer,TrustFundsandOtherPublicDeposits,GovernmentSDRAllocationandOtherDeposits.
2 IncludesForeignCurrenciesonhand.
End
ofM
onth
Cur
renc
y in
Cir
cula
tion
Tota
l
Com
mer
cial
Bank
s
Non
-Ban
kFi
nanc
ial
Inst
itutio
ns
1G
over
nmen
t &
Gov
ernm
enta
lO
rgan
isat
ions
Inte
rnat
iona
lO
rgan
isat
ions
Oth
erLi
abili
ties
Cap
ital &
Rese
rve
Fund
s
Tota
lLi
abili
ties
2Ba
lanc
esw
ith B
anks
Abro
ad
Oth
erFo
reig
nSe
curi
ties
Gol
dSu
bscr
iptio
n to
In
tern
atio
nal
Mon
etar
y Fu
nd
Subs
crip
tions
to
Inte
rnat
iona
l O
rgan
isat
ions
SDR’
sTT
Dol
lar
Secu
ritie
s
Oth
er A
sset
sin
clud
ing
Fixe
d As
sets
Tota
lAs
sets
EXTE
RNAL
ASSE
TSD
EPO
SITS
ASSE
TS
2007
/08
OCTOBER
NOVEMBER
DECEMBER
JANUARY
FEBRUARY
MARCH
APRIL
MAY
JUNE
JULY
AUGUST
SEPTEMBER
2008
/09
OCTOBER
NOVEMBER
DECEMBER
JANUARY
FEBRUARY
MARCH
APRIL
MAY
JUNE
JULY
AUGUST
SEPTEMBER
3,969,876
3,988,564
4,494,198
3,937,579
4,222,666
4,216,868
4,241,450
4,208,990
4,266,636
4,219,611
4,254,304
4,320,199
4,276,245
4,411,529
4,861,929
4,357,282
4,442,352
4,666,146
4,543,444
4,675,442
4,703,088
4,761,401
4,698,803
4,734,784
9,089,294
9,907,594
10,607,636
10,642,989
11,368,614
11,825,975
10,444,106
11,306,251
10,730,077
10,851,605
11,395,526
12,949,007
13,913,335
14,820,069
14,558,455
14,845,844
14,474,521
14,679,984
14,593,613
15,241,618
16,348,095
15,342,785
15,938,361
16,145,799
410,825
396,939
411,770
412,697
407,501
399,379
416,598
403,120
405,869
406,170
409,362
404,261
403,223
447,484
403,030
397,666
398,846
392,895
389,561
373,337
372,823
374,914
375,850
381,973
18,590,616
15,530,789
16,313,638
16,592,993
15,845,266
15,174,621
17,377,087
15,788,414
14,978,124
13,986,980
13,004,561
11,932,258
10,537,384
8,299,627
7,594,589
8,389,557
6,827,541
7,512,290
8,887,759
7,589,654
8,171,290
9,288,152
6,641,801
7,624,447
443,276
428,089
428,089
428,089
428,089
437,847
435,287
435,287
449,504
449,504
2,868,424
3,122,392
3,122,392
3,122,392
3,122,392
3,122,392
3,122,392
3,122,392
3,122,392
3,042,088
3,042,088
3,042,088
3,042,088
3,042,088
25,550,009
26,989,304
29,132,274
27,399,891
29,600,322
28,699,517
28,939,557
29,365,764
29,472,876
28,772,428
29,688,771
37,152,764
33,787,420
33,546,174
33,170,392
34,246,540
35,651,251
36,472,518
31,724,812
35,342,924
31,915,017
33,508,539
32,689,276
40,096,927
1,190,268
1,190,268
1,190,268
1,190,268
1,190,268
1,190,268
1,190,268
1,190,268
1,190,268
1,190,268
1,190,268
1,334,871
1,334,871
1,334,871
1,334,871
1,334,871
1,334,871
1,334,871
1,334,871
1,334,871
1,334,871
1,334,871
1,334,871
1,388,049
59,244,164
58,431,547
62,577,873
60,604,506
63,062,725
61,944,475
63,044,353
62,698,094
61,493,354
59,876,566
62,811,216
71,215,752
67,374,870
65,982,146
65,045,658
66,694,152
66,251,774
68,181,096
64,596,452
67,599,934
65,887,272
67,652,750
64,721,050
73,414,067
30,627,242
28,931,802
30,950,806
30,093,346
27,894,411
29,334,661
31,002,450
29,907,492
30,406,739
28,809,351
28,231,316
28,083,658
27,537,852
26,411,436
25,440,115
25,666,536
24,932,883
25,940,424
26,951,506
26,409,635
27,472,762
27,255,055
24,291,053
25,287,369
27,103,201
28,039,694
29,926,388
29,203,674
31,128,451
28,591,934
27,718,883
27,987,302
27,009,007
27,113,524
28,061,318
34,526,330
32,214,841
32,050,148
31,866,608
33,454,925
34,229,556
35,092,451
31,485,168
35,076,618
31,776,481
34,095,360
34,123,960
37,990,892
25,402
25,402
25,402
25,402
25,402
25,402
25,402
25,402
25,402
25,402
25,402
25,402
25,402
25,402
25,402
25,402
25,402
25,402
25,402
25,402
25,402
25,402
25,402
3,179,114
96,071
96,058
96,102
96,091
96,057
97,191
97,170
97,155
97,172
97,176
97,214
97,280
97,242
97,268
97,297
97,251
97,329
97,332
97,277
97,312
97,325
97,239
97,266
120,793
9,171
6,571
6,571
6,571
5,910
6,095
5,978
5,782
5,971
5,971
2,424,835
2,678,803
2,678,803
2,678,784
2,678,784
2,678,784
2,678,767
2,678,767
2,678,741
2,609,840
2,609,840
2,609,840
2,609,901
2,609,901
255,272
245,108
195,351
195,778
705,985
1,006,395
1,392,612
1,448,336
1,024,380
1,046,739
1,047,221
2,039,591
1,808,485
1,807,096
1,807,047
1,807,250
1,177,116
1,168,322
375,761
375,341
499,284
498,863
499,561
299,736
1,127,805
1,086,912
1,377,253
983,644
3,206,509
2,882,797
2,801,858
3,226,625
2,924,683
2,778,403
2,923,910
3,764,688
3,012,245
2,912,012
3,130,405
2,964,004
3,110,721
3,178,398
2,982,597
3,005,786
3,406,178
3,070,991
3,073,907
3,926,262
59,244,164
58,431,547
62,577,873
60,604,506
63,062,725
61,944,475
63,044,353
62,698,094
61,493,354
59,876,566
62,811,216
71,215,752
67,374,870
65,982,146
65,045,658
66,694,152
66,251,774
68,181,096
64,596,452
67,599,934
65,887,272
67,652,750
64,721,050
73,414,067
LIAB
ILIT
IES
TAB
LE A
.2C
ENTR
AL
BA
NK
STA
TEM
ENT
OF
LIA
BIL
ITIE
S A
ND
ASS
ETS
20
09
-20
10
(TT
Do
llars
Th
ou
san
ds)
Central Bank of Trinidad and Tobago Annual Report 2010 | 55
TABLE A.3COMMERCIAL BANKS:AVERAGE DEPOSIT LIABILITIES, REQUIRED CASH RESERVES AND ACTUAL CASH RESERVESFor Period Ending September 2010
7-Oct-0914-Oct-0921-Oct-0928-Oct-09
4-Nov-0911-Nov-0918-Nov-0925-Nov-09
2-Dec-099-Dec-0916-Dec-0923-Dec-0930-Dec-09
6-Jan-1013-Jan-1020-Jan-1027-Jan-10
3-Feb-1010-Feb-1017-Feb-1024-Feb-10
3-Mar-1010-Mar-1017-Mar-1024-Mar-1031-Mar-10
7-Apr-1014-Apr-1021-Apr-1028-Apr-10
5-May-1012-May-1019-May-1026-May-10
2-Jun-109-Jun-1016-Jun-1023-Jun-1030-Jun-10
7-Jul-1014-Jul-1021-Jul-1028-Jul-10
4-Aug-1011-Aug-1018-Aug-1025-Aug-10
1-Sep-108-Sep-1015-Sep-1022-Sep-1029-Sep-10
ReservePeriodEnding
AverageDeposit
Liabilities($000)
Required Cash
Reserves ($000)
AverageCash
Reserves($000)
42,893,58843,170,45943,483,09443,869,453
44,098,70644,530,97144,981,96545,369,388
45,817,81246,303,98846,772,86547,077,72947,386,318
48,044,52948,665,92449,065,87649,274,853
49,069,63548,857,64748,929,64149,032,159
49,125,34749,275,55349,196,09449,256,67149,318,612
49,342,69449,423,96549,547,67649,444,771
49,444,77148,947,26548,769,15948,752,329
49,091,49449,306,15349,472,61249,704,28249,866,971
50,016,32450,276,68850,310,78850,233,035
50,020,22949,794,19449,791,57149,844,965
50,036,92450,253,13550,420,45350,676,75950,888,282
7,291,9107,338,9787,392,1267,457,807
7,496,7807,570,2657,646,9347,712,796
7,789,0287,871,6787,951,3878,003,2148,055,674
8,167,5708,273,2078,341,1998,376,725
8,341,8388,305,8008,318,0398,335,467
8,351,3098,376,8448,363,3368,373,6348,384,164
8,388,2588,402,0748,423,1058,405,611
8,405,6118,321,0358,290,7578,287,896
8,345,5548,382,0468,410,3448,449,7288,477,385
8,502,7758,547,0378,552,8348,539,616
8,503,4398,465,0138,464,5678,473,644
8,506,2778,543,0338,571,4778,615,0498,651,008
10,811,97311,141,32810,726,75310,924,034
9,349,14610,025,9509,720,3029,501,082
10,428,44910,898,51810,194,29910,318,6879,943,914
9,421,7119,499,5789,284,9279,610,121
10,617,3379,949,03710,007,1209,685,863
9,774,97310,150,95610,248,66810,458,64410,193,612
10,622,05610,219,8719,104,1259,529,417
9,870,58710,095,37010,601,99610,623,878
10,688,04911,250,13911,489,18311,548,01911,850,756
10,664,81310,934,37010,645,16310,347,333
10,994,94211,072,39211,184,84211,163,797
11,288,19711,691,89111,842,28611,813,54911,159,890
Source:CentralBankofTrinidadandTobago.
| Central Bank of Trinidad and Tobago Annual Report 2010 56
7-Oct-0914-Oct-0921-Oct-0928-Oct-09
4-Nov-0911-Nov-0918-Nov-0925-Nov-09
2-Dec-099-Dec-0916-Dec-0923-Dec-0930-Dec-09
6-Jan-1013-Jan-1020-Jan-1027-Jan-10
3-Feb-1010-Feb-1017-Feb-1024-Feb-10
3-Mar-1010-Mar-1017-Mar-1024-Mar-1031-Mar-10
7-Apr-1014-Apr-1021-Apr-1028-Apr-10
5-May-1012-May-1019-May-1026-May-10
2-Jun-109-Jun-1016-Jun-1023-Jun-1030-Jun-10
7-Jul-1014-Jul-1021-Jul-1028-Jul-10
4-Aug-1011-Aug-1018-Aug-1025-Aug-10
1-Sep-108-Sep-1015-Sep-1022-Sep-1029-Sep-10
ReservePeriodEnding
AverageDeposit
Liabilities($000)
Required Cash
Reserves ($000)
AverageCash
Reserves($000)
2,359,6112,366,5332,360,7442,354,800
2,349,8332,341,8782,337,0782,331,967
2,331,0112,338,3562,340,7002,344,4332,342,778
2,328,4782,315,0562,293,3782,280,956
2,277,7442,279,8002,288,9782,290,167
2,285,8562,270,2782,253,7442,237,5672,222,133
1,715,1442,173,8562,134,2002,095,767
2,071,2782,051,4222,025,6332,004,256
1,974,0441,972,1561,983,9441,989,6002,003,822
1,996,1892,007,4672,018,6672,029,456
2,042,7892,039,0222,036,9112,040,378
2,041,0002,042,8892,069,6112,086,6442,108,600
212,365212,988212,467211,932
211,485210,769210,337209,877
209,791210,452210,663210,999210,850
209,563208,355206,404205,286
204,997205,182206,008206,115
205,727204,325202,837201,381199,992
154,363195,647192,078188,619
186,415184,628182,307180,383
177,664177,494178,555179,064180,344
179,657180,672181,680182,651
183,851183,512183,322183,634
183,690183,860186,265187,798189,774
212,484213,125212,935212,411
212,240211,942211,586211,237
211,236211,796211,995214,639212,218
210,984209,812207,928206,853
206,601206,887207,868234,282
207,893206,606205,239203,386202,083
186,355205,680202,167198,749
196,580186,845184,484182,525
179,726179,310180,306180,751182,011
181,310182,287183,210184,102
185,259187,457184,720185,037
185,037185,227187,612189,449191,160
Source:CentralBankofTrinidadandTobago.
TABLE A.4NON-BANK FINANCIAL INSTITUTIONS:AVERAGE DEPOSIT LIABILITIES, REQUIRED CASH RESERVES AND ACTUAL CASH RESERVESFor Period Ending September 2010
ANNUALREPORT
2010