Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698930490699.pdf (Trinidad and Tobago)
OUR PURPOSE 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.

c CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 THE MANDATE CENTRAL BANK ACT CHAPTER 79:02 3.

(1) There is hereby established a Bank to be known as the Central Bank of Trinidad and Tobago.

(2) The Bank is hereby created a body corporate.
(3) The Bank shall have as its purpose the promotion of such monetary, credit and exchange conditions as are most favourable to the development of the economy of Trinidad and Tobago, and shall, without prejudice to the other provisions of this Act— (a) have the exclusive right to issue and redeem currency notes and coin in Trinidad and Tobago; (b) act as banker for, and render economic, financial and monetary advice to the Government; (c) maintain, influence and regulate the volume and conditions of supply of credit and currency in the best interest of the economic life of Trinidad and Tobago; (d) maintain monetary stability, control and protect the external value of the monetary unit, administer external monetary reserves, encourage expansion in the general level of production, trade and employment; (e) undertake continuously economic, financial and monetary research; (f ) review- (i) legislation affecting the financial system; and (ii) developments in the field of banking and financial services, which appear to it to be relevant to the exercise of its powers and the discharge of its duties; and generally, have the powers and undertake the duties and responsibilities assigned to it by any other law.
e CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 LETTER OF TRANSMITTAL The Honourable Colm Imbert Minister of Finance Eric Williams Finance Building Independence Square PORT OF SPAIN Dear Minister Imbert, December 31, 2015 REF: CB-G-A4/2015 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, 2015, together with a copy of the Annual Audited Statement of Accounts certified by the Auditors.
Yours sincerely, ALVIN HILAIRE Governor i CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 ii CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 TABLE OF CONTENTS Governor’s Foreword Leadership Team • Board of Directors • Executives • Senior Managers • Managers • Assistant Managers Organisational Structure Review of Activities 2014-2015 Monetary Policy and Economic Developments Strengthening Confidence in the Financial system Strengthening the Legislative Agenda Producing Relevant Research and Timely Statistics Meeting the Bank’s Data Needs Managing Foreign Reserves in Volatile Financial Markets Banker to Government Enhancing Consumer Protection Building Human Capital and Knowledge Knowledge Management Working in a Safe Environment External Communications Financial Statements Report of the Auditor General • • Consolidated Financial Statements • Notes to the Consolidated Financial Statements Appendices iv vi vii viii ix x xi 1 3 7 11 12 12 13 18 18 19 19 20 25 28 32 iii CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 GOVERNOR’S FOREWORD The global economy remained fragile in Financial Year 2015.
With the exception of the United States, economic growth in advanced economies was weaker than expected, particularly in the Euro area and Japan.

Meanwhile growth in emerging markets, led by China, continued to slow.

Global financial markets eagerly anticipated the normalization of US monetary policy stemming from the US Fed’s signalled increase in interest rates before the end of 2015.

However, the precise timing remained uncertain.


Ahead of this event, some global central banks tightened monetary policy in order to address the possible fall out from higher US interest rates.

Meanwhile, geopolitical events such as mass migration from war-torn Syria to Europe and acts of terrorism weighed on global growth prospects.

As a small, open, energy-producing economy, Trinidad and Tobago was not immune to the vagaries of global economic developments.
Sharply falling oil and natural gas prices in 2015 negatively impacted the domestic energy sector.

Further, natural gas shortfalls due to prolonged maintenance works at major energy companies suppressed energy sector output.

The performance of the non-energy sector also waned.

Although the unemployment rate fell in the second quarter of 2015, the number of persons with jobs declined from a year earlier.
As a consequence of the difficulties observed in the energy sector, foreign currency inflows to the domestic foreign exchange market moderated.

As a result, the Central Bank increased its foreign exchange sales to the market, resulting in some decline in international reserves which nonetheless remained at comfortable levels.
Over the course of the Financial Year, the Central Bank maintained its monetary policy stance aimed iv Dr. Alvin Hilaire Governor Chairman of the Board at addressing the potential challenges from higher interest rates in the US and substantial domestic financial sector liquidity.

Accordingly, the Bank increased the repo rate by a cumulative 150 basis points.

The repo increases were supported by aggressive liquidity tightening through stepped up open market operations.
The banking sector remained resilient in 2015 despite the challenges in the domestic economy.

Banks remained well capitalized and well positioned to respond to market shocks.

The Central Bank continued to work with the banking and insurance sectors their supervisory and regulatory frameworks.

to strengthen CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 The Bank expects 2016 to be challenging as the energy sector continues to grapple with natural gas shortfalls and low energy prices.
Such difficulties will affect the Government’s revenues as well as the balance of payments and require a coordinated and focused effort on the part of the fiscal and monetary authorities to address these challenges.

Governor Chairman of the Board Dr. Alvin Hilaire Dr. Alvin Hilaire was appointed Governor effective December 23, 2015.
He succeeded Mr. Jwala Rambarran who served from July 17, 2012 to December 23, 2015. v CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 BOARD OF DIRECTORS Executive Directors Mr. Jwala Rambarran Chairman of the Board Governor Dr. Sandra Sookram Executive Director Deputy Governor Dr. Alvin Hilaire Executive Director Deputy Governor BOARD OF DIRECTORS Non-Executive Directors Mr. Joseph Timothy Date of Appointment: July 25, 2014 Mr. Raoul John Date of Appointment: July 25, 2014 Mr. Steve Seetahal Dates of Appointment: May 18, 2011 to May 17, 2014 July 1, 2014 Mr. Trevor Sudama Date of Appointment: July 25, 2014 Mr. Carlyle Greaves Date of Appointment: April 11, 2012 End of Appointment: April 10, 2015 Mr. Vishnu Dhanpaul Date of Appointment: September 18, 2013 End of Appointment: November 30, 2015 (Resigned) Mr. Clint Ramcharan Date of Appointment: March 25, 2015 End of Appointment: September 16, 2015 (Resigned) vi CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 EXECUTIVES Mr. Jwala Rambarran Chairman of the Board Governor Mr. Carl Hiralal Inspector, Financial Institutions Dr. Sandra Sookram Executive Director Deputy Governor Dr. Alvin Hilaire Executive Director Deputy Governor vii CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 SENIOR MANAGERS Mrs. Arvinder Bharath Deputy Inspector, Financial Institutions Ms. Marie Borely Chief Financial Officer Ms. Nicole Chapman Senior Manager, Legal & Corporate Secretariat Services Mrs. Michelle Chong Tai-Bell Chief Actuary Mrs. Nicole Crooks Senior Manager,
 Human Resources and Knowledge Management Mrs. Michelle Francis-Pantor Deputy Inspector, Financial Institutions Mr. Alister Noel Senior Manager, Operations Ms. Dianne Pierre Senior Manager, Project Management and Corporate Services Ms. Charlene Ramdhanie Senior Manager, Strategic Communications & International Relations viii Ms. Suzanne Roach Financial Services Ombudsman Passed away: Sep 21, 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 MANAGERS Mrs. Angela Henry-Small Manager, Statistics
 Department Mr. Christopher Subryan Manager, Finance & Accounting Mrs. Denise Rodriguez-Archie Manager, Internal Audit Mr. Garnett Samuel Manager, Domestic Market Operations Mr. Gaston Harrison Manager, Employee and Industrial Relations Mrs. Heather Huggins Manager, Human Resources Mrs. Hiliary Wilkins Manager, Knowledge and Information Management Ms. Joanne Seeram Manager, Information Technology Services Mr. Naveen Lalla Manager, Banks & Non-Banks Supervision Ms. Roxanne Solomon Manager, Banking Operations Ms. Sandra Racha Manager, Research Mrs. Sharda Maharaj-Ramjattan Manager, Financial Inclusion Development Agency Mr. Vaughn Halliday Manager, Facilities and Property Manangement Ms. Wendy D’Arbasie Manager, Reserve Management ix CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 ASSISTANT MANAGERS Ms. Amrita Gosine Assistant Manager, Strategic Communications Mr. Dominic Stoddard Assistant Manager, Statistics Ms. Isha Marshall Assistant Manager, Finance & Accounting Mr. Kendall Cuffy Assistant Manager, Market Conduct Mr. Kevin Finch Assistant Manager, Financial Stability Mrs. Marlene Quirico-Callender Assistant Manager, Administrative Services Ms. Natalie Roopchandsingh Assistant Manager, Insurance Supervision Ms. Patricia Babwah Assistant Manager, Legal Mrs. Sandra Swan-Daniel Assistant Manager, Finance & Accounting Supt.
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xi I L A N O T A Z N A G R O I E R U T C U R T S 5 1 0 2 , , & CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 xii CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 REVIEW OF ACTIVITIES 2014-2015 xiii CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 MONETARY POLICY AND ECONOMIC DEVELOPMENTS According to the Central Bank’s Quarterly Real Gross Domestic Product Index, the Trinidad and Tobago economy is estimated to have contracted by 1.9 per cent in the first nine months of 2015, influenced by falling energy output.
Maintenance and upgrade large energy companies activities by several resulted in reduced natural gas supply, which in turn adversely impacted production of Liquefied Natural Gas (LNG) and petrochemicals.

Meanwhile, growth in the non-energy sector is estimated to have declined marginally by 0.1 per cent as activity in manufacturing, construction and distribution slowed considerably.
The unemployment rate declined to 3.2 per cent in the second quarter of 2015 but masked incipient weakness in the labour market.

The improvement in the unemployment rate partly reflected a large fall in labour force participation.

In May 2015, the Central Statistical Office launched the revised Retail Prices Index (RPI) with January 2015 as the new base period.
Based on the new methodology, headline inflation which was recorded at 9.0 per cent in October 2014 measured 7.5 per cent in January 2015 and 4.9 per cent by September 2015.

Core inflation, which excludes food prices, was relatively subdued at below 2.0 per cent.

Food inflation, which stood at 18.2 per cent in October 2014, slowed to 11.0 per cent by September 2015.

Revised estimates from the Ministry of Finance showed that the Central Government realized a deficit of $7.0 billion in Financial Year 2015.
This compares with the originally budgeted deficit of $4.3 billion and an actual fiscal deficit of $4.4 billion in 2013/2014.

The wider fiscal deficit reflected lower Government revenues as a result of softer energy prices, reduced domestic energy production and higher capital allowances to energy companies.

Preliminary data indicate that the external accounts registered a deficit of US$725 million in the first half of 2015, compared with a surplus of US$318 million in the corresponding period in 2014.
At the end of June 2015, the level of gross official reserves stood at US$10.6 billion, equivalent to 12.2 months of import cover.

A large deficit on the capital and financial account offset a relatively small surplus on the current account.

Lower energy and non-energy export earnings were the major reasons for a smaller merchandise trade balance.

Movements in the level of gross official reserves suggested that the external position deteriorated further in the third quarter of 2015.
Gross official reserves dipped to US$10.3 billion, equivalent to 11.8 months of prospective imports of goods and non-factor services as at September 2015.

In Financial Year 2015, the Central Bank maintained its monetary policy stance aimed at addressing the potential challenges from higher interest rates in the US and rising domestic inflationary pressures in the medium-term.
After raising its main policy rate in September 2014 for the first time in nearly two years, the Bank increased the Repo rate by 25 basis points at successive Monetary Policy Committee meetings during the year.

By the end of September 2015, the Repo rate stood at 4.50 per cent, 150 basis points higher than at the start of the financial year.
In conjunction with the Repo rises, the Central Bank implemented an aggressive liquidity management strategy to strengthen the transmission of its policy rate signals.

This resulted in a significant tightening of domestic liquidity conditions.

The Bank’s active liquidity management saw an increase in net open market operations in Treasury securities over the Financial Year 2015.

During the year, the Bank withdrew $3.7 billion1 from the banking system via net open market operations (OMOs).
This was significantly higher than the $1.8 1 This excluded an extraordinary Treasury Bill issue related to a CLICO transaction 1 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 billion sterilized via net OMOs in Financial Year 2015.

Given the Central Bank’s intensified liquidity operations, commercial banks’ holdings of reserves in excess of the statutory reserve requirement fell to a daily average of $3.2 billion in September 2015 compared with $6.8 billion in October 2014.
Lower liquidity levels as well as the signals provided by the adjustments to the Bank’s Repo rate resulted in an uptick in domestic Treasury rates over Financial Year 2015.

The three-month Treasury Bill rate rose to 0.84 per cent in September 2015 from 0.24 per cent in October 2014, while the 10-year Treasury yield increased to 3.35 per cent from 2.56 per cent over the same period.
With comparative US Treasury yields not experiencing similar increases, the differentials between TT and US yields on three-month and 10-year Treasury securities widened at the end of September 2015.

The differential on the three-month rate rose to 84 basis points from 23 basis points in October 2014, while that on the 10-year reached 129 basis points from 21 basis points in October 2014.
With the increases in the Repo rate, the commercial banks’ prime lending rates trended upwards during the Financial Year.

As such, commercial banks’ median prime lending rate stood at 8.50 per cent at the end of September 2015, up from 7.50 per cent in October 2014.

However, commercial banks’ weighted average lending rate stood at 7.60 per cent in June 2015 compared with 8.03 per cent in September 2014, while the weighted average deposit rate held steady at 0.55 per cent over the period.
As a result, the spread between weighted average lending and deposit rates narrowed to 7.06 per cent in June from 7.48 per cent in September 2014.

Consistent with weaker economic conditions and tightening monetary policy, private sector credit expanded moderately.

On a year-on-year basis to September 2015, growth in private sector credit granted by the consolidated financial system slowed to 5.9 per cent from 6.2 per cent in October 2014 mainly because of slower commercial bank lending.
However, credit extended by non-bank financial 2 institutions recovered, growing by 7.7 per cent in September 2015 after contracting by 0.5 per cent in October 2014.

Overall, most categories of private sector credit grew moderately during Financial Year 2015.

Lending to businesses rose by 4.4 per cent in September 2015, compared with growth of 3.2 per cent in October 2014.

Consumer lending remained strong, reaching 8.6 per cent in September 2015.
Meanwhile, lending for real estate mortgages, which had grown strongly over the past two years, decelerated.

By September 2015, real estate mortgage lending had expanded by 7.3 per cent compared with 11.0 per cent at the beginning of the financial year.

Conditions in the domestic foreign exchange market were relatively tight, as inflows from the energy sector fell in Financial Year 2015.
Purchases from the public by authorized dealers amounted to US$5,045 million, 14.7 per cent lower than in the previous year.

Energy sector conversions of roughly US$3.5 billion were also 14.6 per cent lower than the previous year.

On the other hand, sales of foreign currency to the public amounted to US$7,262 million, which was just 0.5 per cent less than in the previous year.
As a result, the Central Bank increased its support to the domestic foreign exchange market, selling US$2,325 million to completely offset the net sales gap.

The level of support provided by the Bank in Financial Year 2015 was US$745 million more than in the previous year.

The TTD/USD exchange rate was relatively stable over the course of the fiscal year.

In September 2015, the exchange rate stood at TT$6.3624/US$1.00 compared with TT$6.3607/ US$1.00 at the beginning of the fiscal year.
Over Financial Year 2015, the domestic stock market produced a relatively flat outturn.

The Composite Price Index was up by 0.2 per cent compared with a 0.1 per cent gain in the previous financial year.

A 1.3 per cent decline in the All Trinidad & Tobago Index was countered by a 10.1 per cent increase in the Cross Listed Index, as the share prices of regional CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 companies rallied due to an improvement in their home economies.
Stock market capitalization stood at $109.5 billion.

In terms of stock market trading activity, 74.6 million shares were traded in Financial Year 2015 at a market value of roughly $946.8 million, compared with 92.3 million shares trading hands at a market value of $1.1 billion in the previous financial year.

Over the period October 2014 to September 2015, there were eight primary bond market issues raising roughly $4.6 billion.
In the previous financial year, there were also eight issues; however, the total amount raised was significantly higher at $10.1 billion.

Faced with falling revenues in Financial Year 2015, the Central Government of Trinidad and Tobago raised three bonds totalling $2.5 billion through private placements.

Private entities ($1.8 billion) and the Home Mortgage Bank ($250 million) were the other borrowers on the domestic bond market during Financial Year 2015.
Aggregate mutual funds under management stood at $41.0 billion at the end of September 2015, representing a 0.8 per cent decrease from the end of the previous financial year.

Contributing to the decline in the mutual fund industry was a 14.9 per cent drop in equity funds under management, which ended the period at $5.0 billion.

Over the period October 2014 to September 2015, income funds under management grew by 1.0 per cent to $34.6 billion.
In terms of currency profile and in line with the industry performance, US dollar funds fell by 1.3 per cent to $8.0 billion, while TT dollar funds dipped by 0.7 per cent over Financial Year 2015.

STRENGTHENING CONFIDENCE IN THE FINANCIAL SYSTEM Banking Sector The banking sector remained resilient in the face of declining energy prices and a deteriorating economic outlook in Financial Year 2015. Credit expansion was supported primarily by lending to Government and Government-related entities.
Banks continued to extend credit to households at a faster pace than to private sector businesses.

However, there was some evidence of a slowdown in lending to consumers, particularly with respect to residential real estate mortgages.

Overall, the quality of the loan portfolio was safeguarded by a combination of write-offs and focused collection efforts.
Deposits remained a stable source of funding, which partly suggested that commercial and retail customers maintained their confidence in the soundness of the banking sector.

Liquid assets and capital buffers remained high, so that banks were well placed to respond to liquidity shocks.

Banks in Trinidad and Tobago have consistently reported capital buffers in excess of regulatory requirements and are thus well prepared for roll-out of the new Basel II/III international capital standards.
Additionally, capital adequacy ratios for the banking system remained above the 8 per cent regulatory benchmark when interest rate, foreign exchange, credit, property price and liquidity shocks were applied.

The Financial Institutions Supervision Department (FISD) increased its on-site surveillance of banks to ensure their safe operations.

This included on-site examinations of two large banks and the main cross-border subsidiaries, and was undertaken in conjunction with regional regulators.
In addition, FISD strengthened its regulatory oversight over four systemically important banks through increased engagement and more intense surveillance.

3 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 these recommendations, while some are examining other ways of ensuring the ongoing viability of their plans.
Systemically Important Financial Institutions (SIFIs) The Central Bank completed an onboarding exercise institutions deemed Systemically for five new Important Financial Institutions (SIFIs).

These are the National Insurance Board, the Trinidad and Tobago Unit Trust Corporation, the Trinidad and Tobago Mortgage Finance Company Limited, the Home Mortgage Bank and the Agricultural Development Bank.
The exercise resulted in the development of risk profiles for the entities through an assessment of their business models, internal control environment and arrangements.

Regulatory and supervisory frameworks for four SIFIs were developed and will be fully deployed in Financial Year 2016.

A framework for the fifth SIFI is in progress.

governance corporate Additionally, the Bank identified four (4) existing commercial banks and two (2) insurers as SIFIs.
Supervisory review of these financial institutions has been intensified accordingly.

Insurance Sector The insurance sector remained stable during the Financial Year 2015.

Premium income in the life insurance sector continued its upward trajectory driven by unit-linked and annuity products, but the still-low interest rate environment continued to affect investment income.

Consequently, some insurance companies explored alternative life investment through participation in residential mortgage lending.
Profits continued to be stable in line with past years.

particularly options, In the non-life sector, premium growth was driven by the property and motor lines of businesses.

The sector experienced increased operating expenses and lower levels of underwriting profits which, together with a decline in investment yields, resulted in lower overall profitability.
The Central Bank continues to work with the insurance companies to strengthen their corporate governance and risk management practices, capital and internal controls and compliance with regulatory requirements.
Occupational Pension Plans low Sustained Total assets of private occupational pension plans approximated $49 billion at the end of September 2015. interest rates and the deteriorating economic environment continued to impact investment returns of bonds and equities in which the majority of plans’ assets were invested.

This adversely affected funding levels of private occupational pension plans with several being sub-optimally funded.
The Bank continued its oversight to ensure private pension plans were following actuarial recom- mendations to address funding deficits.

The Bank actively engaged with trustees and plan sponsors for prudent review of the overall financial condition of the plans.
Most plan sponsors are complying with 4 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 Selected Financial Soundness Indicators Banking System, Commercial Banks, Non-Bank Financial Institutions and Insurance Companies Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Sep-14 Sep-15 /per cent/ COMMERCIAL BANKS Capital adequacy Regulatory capital to risk-weighted assets Regulatory Tier I capital to risk-weighted assets Asset quality Nonperforming loans-to-gross loans Nonperforming loans (net of provisions)-to-capital Earnings and Profitability Return on assets Return on equity Liquidity Liquid assets-to-total assets 24.3 27.7 25.2 27.5 25.3 26.6 22.7 NON-BANK FINANCIAL INSTITUTIONS Capital adequacy Regulatory capital to risk-weighted assets Regulatory Tier I capital to risk-weighted assets Asset quality Nonperforming loans-to-gross loans Nonperforming loans (net of provisions)-to-capital Earnings and Profitability Return on assets Return on equity Liquidity Liquid assets-to-total assets Capital Adequacy Capital to total assets Asset Quality LIFE INSURANCE COMPANIES1 9.7 17.3 17.5 21.1 21.4 13.6 23.8 22.1 22.0 21.2 21.3 21.2 20.7 (Real estate
 +unquoted equities + debtors ) / total assets 15.1 13.5 9.3 10.5 7.4 8.9 7.9 Earnings and Profitability Expense ratio = expense (incl commissions) /net premium Investment yield = Investment income to investment assets 37.8 6.2 38.6 5.7 37.8 5.4 35.1 5.1 33.6 4.8 33.6 4.6 32.7 4.7 Liquidity Liquid assets to current liabilities 28.8 33.5 33.6 32.6 34.2 31.3 36.2 NON-LIFE INSURANCE COMPANIES Asset Quality (Real estate +unquoted equities + accounts receivables ) / total assets Actuarial Issues Net technical reserves/average of net claims paid in the last three years Earnings and Profitability Return on Equity (ROE) = Pre-tax profits to shareholders funds Return on assets (ROA) Liquidity Liquid assets to current liabilities SOURCE: Central Bank of Trinidad and Tobago.
1/ Data reported excludes Colonial Life Insurance Company (Trinidad) Limited and British American Insurance Company (Trinidad) Limited.

5 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 INSTITUTIONAL DEVELOPMENTS Republic Bank Limited 1.

2.

In May 2015, Republic Bank Limited (RBL) completed its acquisition of 57.25% of HFC Bank (Ghana) Limited.

RBL also acquired Royal Overseas (St. Lucia) Limited in July 2015, the entity that holds 100% of the shares of RBC Suriname N.V.
The names of the institutions have been changed to “Republic Suriname Holding Limited” and “Republic Bank (Suriname) N.V.”, respectively.

RBL will restructure its operations through the creation of a holding company.

In addition to facilitating greater operational efficiency and serving as a platform for expansion, this structure will result in improved regulatory oversight in line with international best practices.

RBC Royal Bank 1.
RBC Royal Bank 1.

In July 2015, RBC Financial Limited (RBCFL) sold its interest in RBC Royal Bank (Suriname) N.V.

The Group also transferred parts of its operations in Antigua, St. Kitts and St. Lucia to RBC Canada.

Scotia Group 1.

2.

3.

In March 2015, Canadian domiciled Bank of Nova Scotia (BNS) transferred its 50.9% shareholding (89,761,887 ordinary shares) in Scotiabank Trinidad and Tobago Limited (SBTT) to Scotiabank Caribbean Holdings Limited (SCHL).
SCHL, located in Barbados, is a 100% owned subsidiary of BNS.

In May 2015, SBTT and its 100% owned subsidiary, Scotiatrust and Merchant Bank (STMB), were amalgamated.

In June 2015, Scotia Investments Trinidad and Tobago Limited was granted a licence under section 21(1) of the Financial Institutions Act, 2008 (“FIA”) to conduct the business of a financial nature.
6 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 STRENGTHENING THE LEGISLATIVE AND REGULATORY FRAMEWORK LEGISLATIVE DEVELOPMENTS The Central Bank’s progress on enhancing the regulatory framework for financial institutions was affected as two key pieces of legislation governing insurance and credit union sectors lapsed the following the dissolution of Parliament on June 17, 2015.
These are: (i) The Insurance Bill, 2015 - The Insurance Bill was revised during the year and passed in the Senate on May 23, 2015.

Thereafter, the Bill was laid in the Lower House but lapsed due to the dissolution of Parliament on June 17, 2015.

The Insurance Bill was intended to improve regulatory oversight of insurance strengthen prudential companies and requirements, corporate governance and market conduct.

The Central Bank plans to convert key regulations which accompany the Bill into guidelines.
(ii) Credit Union Bill, 2014 and Protection Fund - On November 18, 2014, the Credit Union Bill 2014 and consequential amendments to the Co-operatives Societies Act via the Co-operative Societies (Amendment) Bill were introduced in the Senate.

These Bills, however, also lapsed on June 17, 2015 due to the dissolution of Parliament.

Further, on January 29, 2015, Cabinet approved a Policy Proposal Document to establish a mandatory Protection Fund for the deposits and shares held by credit unions.
The Credit Union Protection Fund (‘Fund’) is to be established by way of amendments to the Central Bank Act, Chap.

79:02 and will be administered by the Deposit Insurance Corporation (DIC).

Representatives from the Central Bank, Ministry of Finance, Chief Parliamentary Counsel and the DIC met during the year to review draft legislative amendments for establishment of the Fund.
In addition, the Central Bank collaborated with the Ministry of Finance and other relevant stakeholders on the following developments: (iii) Motor Vehicle Accident Fund – In March 2015, Cabinet approved policy proposals to establish a motor vehicle accident fund (MVAF) which was designed to provide redress for victims of uninsured and untraced (“hit and run”) drivers.
(iv) Foreign Account Tax Compliance Act, 2010 (FATCA) - Trinidad and Tobago reached agreement in substance with the United States Internal Revenue Service (IRS) on a Model 1 Intergovernmental Agreement (IGA).

Signing of the IGA is dependent on conclusion of negotiation of certain matters.

Consequent upon the requirement to have the IGA as part of the country’s laws, the Chief Parliamentary Counsel proposed inter alia the Financial amendments to Institutions Act, Chap.
79:09 (FIA) and the Insurance Act, Chap.

84:01 (IA).

Such amendments seek to facilitate, for example, the sharing and transfer of confidential consumer financial institutions to the IRS.

information from 7 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 REGULATORY & SUPERVISORY DEVELOPMENTS The Central Bank launched a significant project to update and strengthen the prudential capital framework applicable to banks during Financial Year 2015.
The Bank also issued revised Terms and Conditions governing the operations of Bureaux de Change.

(i) Revised Capital Adequacy Standards for Institutions licensed under the Financial Institutions Act 2008 (Basel II/III) - In November 2014, the Central Bank held an inaugural meeting with the banking industry to discuss proposals to revise and enhance the capital adequacy framework governing banks.
Subsequently, a Policy Proposal Document (PPD) was issued to institutions licensed under the Financial Institutions Act, 2008 (FIA).

The PPD detailed plans to implement enhanced capital requirements for credit risk and to introduce a capital charge for operational risk consistent with Basel II/III Capital Standards.
Some of the significant proposals seek to: (a) Increase the minimum Capital Adequacy Ratio (CAR) from 8% to 10%; (b) Increase the Minimum Tier 1 Ratio from 4% to 7%; and (c) Introduce a Minimum Common Equity Tier 1 (CET1) ratio of 4.5% on a phased basis.

A Technical Working Group comprising representatives of the Central Bank and the industry was established to facilitate implementation of the proposals.
Quantitative Impact Studies to assess the impact of the new proposals on banks’ capital ratios will commence in 2016 followed by implementation of the new capital rules in 2017.

8 (ii) Revised Terms and Conditions for the Operations of Bureaux de Change - In August 2015, pursuant to Section 5 of the Exchange Control Act, Chap.

79:50, the Central Bank issued revised Terms and Conditions of Operations of a Bureau de Change to improve regulatory oversight of the sector.
Key enhancements included the following: a) fit and proper of Introduction requirements for directors, officers, controlling shareholders and external auditors; b) Introduction of minimum requirements of $500,000; capital c) Provisions for conduct of on-site examinations; and d) Stipulation of regulatory / enforcement actions that could be taken by the Bank for non-compliance with the Terms and Conditions.
Bureaux de Change have been given a transition period of six (6) months to comply with fit and proper standards and twenty-four months (24) to meet capital requirements.

(iii) Supervisory Guidance – De-Risking - issued The Central Bank supervisory guidance to licensees under the Financial Institutions Act, Chap.

79:09 (FIA) to treat with the de-risking of private members’ clubs and money and value transfer services providers.
(iv) National Financial Crisis Management Plan The Central Bank is revising its draft National CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 Financial Crisis Management Plan.

The draft Plan sets out a framework to manage a crisis when a single SIFI fails, or when there is failure of two larger mid-sized banks or insurance companies.
The draft Plan, which benefited from IMF technical assistance, is under review by a Technical Working Group comprising other members of the national financial safety net: the Securities and Exchange Commission, the Deposit Insurance Corporation and the Ministry of Finance.

Once finalized, the Plan will be presented to the heads of relevant agencies for its adoption and implementation.
REGIONAL CO-ORDINATION IN SUPERVISION OF CROSS BORDER ENTITIES (i) Consolidated Supervisory Framework for Cross Border Entities - The Central Bank revised and expanded the draft Consolidated include Supervision Framework 2014 to protocols to be adopted when a regulator is conducting cross-border consolidated on-site examinations, and information that should be collected by regional regulators to effect consolidated supervision.
The Framework was circulated for comment to the Caribbean Group of Banking Supervisors in and finalization of the document progress.

is (ii) Loan Classification and Provisioning Harmonization Project - The Central Bank led the regional Technical Working Group established to harmonize loan classification and provisioning standards.
The Group, which comprises representatives from six Caribbean countries, will propose minimum classification and standards provisioning to facilitate better comparisons and analysis across regional financial groups.

loan for ENFORCEMENT No administrative fines were levied on any financial institutions licensed under the Financial Institutions Act, 2008 (FIA) during Financial Year 2015.
The Central Bank published the names of unregistered persons purportedly doing business for which licensing or registration is required.

The notices advised the public they should only do business with registered persons.

The Bank successfully sought and obtained an injunction against one entity which was conducting motor vehicle insurance business but was not registered under the Insurance Act, Chapter 84:01.
ANTI MONEY LAUNDERING AND COMBATTING THE FINANCING OF TERRORISM (AML/CFT) As Chair of the Supervisory Working Group of the National Anti-Money Laundering and Counter Terrorist Financing Committee (NAMLC), the Central Bank collaborated with other supervisory authorities and State agencies to formulate amendments to the primary AML/CFT legislation and supporting regulations.
The amendments sought to address compliance with the Financial Action Task Force’s (FATF) 40 Recommendations in preparation for the 4th Round Mutual Evaluation of the country by the Caribbean Financial Action Task Force (CFATF).

These amendments were subsequently passed in Parliament in 2014.

Trinidad and Tobago conducted a National Risk Assessment (NRA) in 2014 to identify the main sources and drivers of money laundering and terrorist financing risks facing the country.
The Central Bank chaired two (2) of the Working Groups for the NRA and co-chaired another with the Financial Intelligence Unit (FIU).

9 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 The resolution plan for BAT also involves phased payments to BAT’s policyholders and creditors but with funding assistance received from Government.

The First Partial Distribution constitutes cash payments to all statutory fund STIP holders amounting to 85 per cent of the principal balance.
Subsequently, a Second Partial Distribution of the remaining 15 per cent will be made.

RESOLUTION PLAN FOR COLONIAL LIFE INSURANCE COMPANY LIMITED (CLICO) AND BRITISH AMERICAN INSURANCE COMPANY (TRINIDAD) LIMITED (BAT) The resolution plan for CLICO and BAT was made known to the public during a televised press conference held by the Governor on March 27, 2015 and published in subsequent press releases.
The CLICO Resolution Plan involves phased payments to CLICO’s policyholders and creditors from the monetization of CLICO’s assets.

The First Partial Distribution constituted cash payments to all statutory fund STIP2 holders, including Government (as assignee of the rights of such STIP holders), of 85 per cent of contractual liability as at the end of the interest term.
Government’s entitlement under the First Partial Distribution would be met by the following: (a) approximately $4 billion in cash; and (b) the transfer of CLICO’s shareholdings in Angostura Holdings Limited (AHL), CL World Brands Limited (CLWB) and Home Construction Limited to Government in lieu of cash, subject to an independent valuation pursuant to section 44D(vi) of the Central Bank Act.
Cash payments under the First Partial Distribution were funded from the proceeds of the sale of Methanol Holdings (Trinidad) Limited.

interest) (plus any accrued The Second Partial Distribution of the remaining 15 per cent is proposed to be funded from the sale of Methanol Holdings (International) Limited (MHIL).
A Third Distribution will be made to mutual fund holders and non-resident STIP holders, including the Government as assignee of the rights of mutual fund holders and non-resident STIP holders who accepted Government’s offer.

Payments will then be made from the realization of other assets to other creditors outside the statutory fund and to the Government as Preference Shareholder in subordination to the unsecured creditors but in priority to payment to Ordinary Shareholders.
2 Short term investment products (STIP) 10 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 PRODUCING RELEVANT RESEARCH AND TIMELY STATISTICS Policy-Oriented Research for the domestic economy.
Financial Year 2015, reintroduced the Research During Department the annual Trends, Analysis and Projections (TAP) report which provided medium-term forecasts of key macroeconomic variables The Department’s research programme was heavily focused on aligning research papers and technical policy advice to emerging risks in the economy.
The major research papers and executive briefings undertaken included the following: output gap, transmission mechanism, calculating monetary impact on the fiscal stimulus, diversification, falling oil prices on government revenues, household indebtedness, neutral policy rate, fiscal marksmanship, inflation and growth, LNG arbitrage and netback pricing and the impact of US shale oil and gas on petrochemical and oil prices.
The Department continued to provide analytical support primarily through background papers for the Monetary Policy Committee and the Financial Stability Committee, as well as for the Debt Management Advisory Committee.

The Department is also represented on the Liquidity Management Committee.

In addition, support was provided to the Ministry of Trade, Industry and Investment and the Ministry of Foreign Affairs.
In keeping with the thrust of developing the research capabilities of young economists, the Research Department once again hosted interns through the Caribbean Technical Assistance Centre (CARTAC) and De La Rue Scholarship Programme.

The Research Department supported the Central Statistical Office (CSO) in rebasing of the Retail Prices Index (RPI) and GDP.

The Department continues to support initiatives that strengthen the country’s statistical capacity.
The Research Discussion Series was restarted, providing a forum for economists to discuss and receive feedback from management and peers on research working papers before publication and/ or presentation at conferences.

The Department coordinated and participated in two IMF technical assistance missions on macro prudential policy (May 2015) and on monetary policy (August 2015).
As part of its function of providing economic intelligence, the Research Department continued the production of Central Bank’s official publications such as the Annual Economic Survey, the Economic Bulletin, the Monetary Policy Report, the Financial Stability Report and Balance of Payments.
11 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 MEETING THE BANK’S DATA NEEDS MANAGING FOREIGN RESERVES IN VOLATILE FINANCIAL MARKETS The Statistics Department continued to enhance its ability to meet the data needs of its clients.

In addition to publication of the Handbook of Economic and Financial Statistics, a wide range of additional statistical information was made available in the Data Centre on the Bank’s website.
The Index of Quarterly Real Gross Domestic Product was rebased to 2010 and the Balance of Payments methodology was revised to BPM6, the most recent standard for compilation of external sector statistics.

The Statistics Department also reinstituted the Bank Technicians Meeting which seeks to rationalize data reporting by licensed financial institutions, revise data collection procedures and expand the framework for ongoing dialogue.
The Survey Unit within the Statistics Department the Business Confidence Survey, conducted the Consumer Confidence Survey and a Labour Confidence Survey.

In addition, surveys were conducted for the Office of the Financial Services Ombudsman on Consumer Financial Protection, and for the newly created Financial Stability Department on Financial Stability Risks in Households.
The Survey Unit is assisting the Bank of Guyana, under the terms of a Memorandum of Understanding, in the conduct of a National Financial Literacy Survey.

The Department continued to provide support for the activities of the Payment Systems Unit, the Research Department and the Financial Institutions the Supervision Department, operation of data driven processes as they execute their respective mandates.
Most recently, the Statistics Department assumed full responsibility for all data related to the payments systems.

spearheading 12 Over Financial Year 2015, global financial markets continued to exhibit elevated levels of volatility mainly as a result of concerns surrounding Greece, the slowdown in China and uncertainty about the timing of the U.S. Federal Reserve’s first interest rate hike since June 2006.
These factors contributed increasing demand for safe-haven to longer-dated U.S. securities Treasuries performing relatively better than shorter maturities.
investors’ resulted that in Despite the volatile markets, the Central Bank’s investment strategy remained underpinned by the following core principles: • • • Safety: Preserving the capital value of the Reserve Portfolio; Liquidity: Ensuring the availability of obligations; and sufficient liquidity to cover all Return: Achieving an acceptable rate of return on investments within well-defined risk parameters.
The Reserve Portfolio, which is invested primarily in fixed deposits and short-dated U.S. Treasuries, earned a return of 0.35 per cent for the Financial Year 2015 compared with a return of 0.16 per cent in the previous year.

This relatively better performance reflected a combination of lower yields, higher deposit rates and tactical strategies.

Foreign exchange reserves grew to US$11.3 billion in December 2014 from US$10.1 billion in September 2014.
However, for 2015 the reserves have been on a downward trajectory declining to US$10.3 billion by September 2015.

Energy revenues continued to be the primary source of inflows, amounting to CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 US$2.0 billion.

Proceeds of approximately US$1.2 billion from the sale of certain assets were also a major inflow to the portfolio.
These amounts were sufficient to meet the major outflows from the portfolio which included foreign currency sales to the domestic market totalling US$2.3 billion and Central Government payments of approximately US$0.9 billion.

BANKER TO GOVERNMENT Currency in Circulation In accordance with the Central Bank Act Chapter 79:02, the Central Bank continued to perform the role of sole issuer of Trinidad and Tobago currency.
In December 2014, the Bank placed into circulation a redesigned $50 bank note made of polymer to commemorate the 50th anniversary of the Bank.

This redesign was significant as it not only allowed the Central Bank to introduce contemporary bank note design styles for the first time in half a century, but also to introduce polymer, the newest technology in bank note production.

Currency in circulation increased by 14.6 per cent to $8,489 million in Financial Year 2015 (Chart 1).
The traditional seasonal pattern of higher demand by commercial banks for currency during the holiday season of November and December continued to be evident.

New notes issued by the Central Bank amounted to 82 million, 3.8 per cent less than the 85 million issued in the previous year.

The $100 denomination represented the largest value at about 89 per cent of all notes in circulation while the $1 denomination accounted for the largest volume at 42 per cent of total notes in circulation (Chart II).
With respect to coins, the 1 cent remained the most widely circulated coin, representing approximately 49 per cent of the total volume of coins in circulation while the 25 cents coin accounted for 19 per cent of total volume (Chart III).
Chart I Currency in Circulation 13 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 Chart II Volume of Notes in Circulation by Denomination as at September 30, 2015 Percent of Total Chart III Volume of Coins in Circulation by Denomination as at September 30, 2015 Percent of Total Clearing and Settlement Systems The Central Bank continued to perform the role of operator for the Real Time Gross Settlement (RTGS) system, safe-tt and the Cheque Clearinghouse Facility for domestic currency cheques.
The volume of cheques cleared increased by 2.6 per cent to 1.7 million as at September 2015 (Chart IV) with a corresponding increase of 10.9 per cent to $64 billion in the value of cheques cleared.

A total of 41,000 transactions valued at $775 million was processed over the Automated Clearing House (ACH) in Financial Year 2015 compared to a volume of 36,000 transactions valued at $826 million in the previous year.
The RTGS electronic system facilitates the clearance and settlement of large value ($500,000 and over) and time-sensitive transactions among commercial banks and remains the most significant payment system in the domestic economy.

In Financial Year 2015, the RTGS settled 60,084 transactions with a total value of $603 billion (Chart V).
14 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 Chart IV Cheques Cleared by the Central Bank as at September 2015 1,870,000 1,777,500 1,685,000 1,592,500 1,500,000 70,000 52,500 35,000 17,500 - 1,718,350 1,762,530 2013/2014 2014/2015 Chart V RTGS Annual Volumes 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 15 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 Payment Systems In October 2014, Central Bank adopted the Principles for Financial Market Infrastructures which replaced the BIS Core Principles for Systemically Important Payments Systems as the standard for assessing risk management in financial market infrastructures.
In keeping with these developments, the Bank held several discussions with licensees and other key stakeholders to collaborate on the necessary revisions to the current assessment methodology and evaluation questionnaires.

The new assessment framework was subsequently finalized and rolled out to all operators.
The Central Bank continued to work with Government on its various e-payments initiatives as well as with the Payment System Council (PSC) towards the creation of a “Statement of Needs”, both long and short term, for the future development and enhancement of the National Payments System.

Financial Institutions Reserve Monitoring and non-bank The required statutory cash reserve ratios for commercial banks financial institutions remained unchanged at 17 percent and 9 percent of their prescribed liabilities.
Commercial banks continued to hold a secondary reserve of 2 percent of their prescribed liabilities.

A fixed rate of 0.25 per cent was paid on these holdings.

Additionally, as part of the Central Bank’s monetary policy strategy to withdraw excess liquidity from the domestic financial system, commercial banks placed special deposits at the Central Bank.
At the end of September 2015, there were four one-year deposits as follows: • • A deposit of $2.0 billion which matures on 30 October 2015; A deposit of $1.5 billion which matures on 29 December 2015; 16 • • A special fixed deposit of $1.5 billion which matures on 14 March 2016; A special fixed deposit of $1billion which matures on 2 May 2016.

Interest paid to commercial banks on fixed deposits totalled $13.1 million in Financial Year 2015.
Regional Arrangements Bank of Guyana Consolidated Debt Bank of Guyana’s debt to Trinidad and Tobago is a consolidation of sums owed to the Central Bank and the Government of Trinidad and Tobago from: 1.

2.

The Caricom Oil Facility (1981-1982) The Balance of Payments Support Facility (1974-1975) 3.

Bilateral Settlements Loan (1985) This consolidated debt was reduced under the IMF’s Enhanced Heavily Indebted Poor Countries (HIPC) Initiative to US$56 million in 2005.
This debt continues to be serviced on a semi-annual basis and an amount of US$6.15 million was received during Financial Year 2015.

This was distributed as follows based on the proportions of the original loan: • Government of the Republic of Trinidad & Tobago - US$1.24 million • Central Bank - US$4.91 million The principal balance outstanding as at September 30, 2015 was US$28.1 million.
Grenada Government 7½% Debentures – 82/83 In 1971 and 1973 the Central Bank purchased debentures issued by the Government of Grenada with a face value of EC$50,000 and EC$250,000, respectively.

The debt was not retired as arranged and the total due as at September 30, 2015 was CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 EC$2.91 million comprising principal of EC$1.046 million and interest of EC$1.866 million.
Banco Latinamericano De Exportaciones S.A. (BLADEX) The Central Bank holds a total of 160,626.50 Class A shares in BLADEX.

During Financial Year 2015, dividends totalling US$241,742.88 were received.

third tranche of CLICO zero coupon bonds were made to bondholders in the amount of $479.4 million compared to $477.4 million in the second tranche.

On September 3, 2015, payments in respect of the first tranche of the HCU zero coupon bonds were made to bondholders in the amount of $17.7 million.
Public Sector (Arrears of Emoluments) and Tax Free Bonds The Central Bank continued to encash small amounts of outstanding bonds issued under the Public Sector (Arrears of Emoluments) Act 1995, the Public Sector (Arrears of Emoluments) Amendment Act 1998 and Tax Free Bonds created under the Government Savings Bond Act Chap 71:41.

The final maturity date of the Public Sector bonds was January 31, 2001.

During Financial Year 2015, payments of $9,500 were made compared to $22,000 in the previous year.
For the Tax Free bonds which matured in December 2005, total principal and interest repayments were $110,400 in Financial Year 2015 compared to $48,000 in the previous year.

Corporacion Andina de Formento (CAF) In October 2014, the Central Bank subscribed to 7,590 Series “C” Shares of Common Capital Stock of CAF at a cost of US$107,778.000.

CAF is a development bank comprised of various countries and banks from Latin America, the Caribbean and Europe.
Paying Agent Functions The Central Bank continued to act as the Registrar and Paying Agent of Government and State Enterprise (Agency) bonds issued under the Government Securities Auction System and Depository as well as GOTT bonds dematerialized in previous years.

Centralised Securities System (CSS) GOTT Bonds During Financial Year 2015, principal repayments and interest payments to State Agency bondholders amounted to $231.3 million and $283.9 million, respectively.
Total principal and interest paid to Central Government and Government Guaranteed bondholders amounted to $9.10 million and $1.45 billion, respectively, compared to the corresponding period’s This interest paid of $1.55 billion.

represented a decrease of 6.0 per cent compared to the previous year.
On November 30, 2014, payments in respect of the 17 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 ENHANCING CONSUMER PROTECTION BUILDING HUMAN CAPITAL & KNOWLEDGE Financial Year 2015 was a year of many achievements for the Office of the Financial Services Ombudsman (OFSO), but it was also a year when the Bank experienced the sudden loss on September 21, 2015 of the Financial Services Ombudsman, Ms. Suzanne Roach.
Consistent with the Terms of Reference between the Central Bank and the Financial Institutions, the Bank appointed Mrs. Nicole Crooks Deputy Financial Services Ombudsman until a decision is taken on the appointment of a substantive Ombudsman.

The Bank, in consultation with the Bankers Association of Trinidad and Tobago and the Association of Insurance Companies of Trinidad and Tobago, will decide on a suitable candidate to fill the position.
While the OFSO continued its core work of mediating between consumers and their banking and insurance institutions, the staff also found new ways to enhance the outreach to communities, stakeholders and the general public.

The OFSO also commenced work on two major publications specifically pertaining to the elderly that are intended to further assist the public with their financial responsibilities.

Life after Death and Handbook of Services for Senior Citizens will be shared with the public on completion.
Human Resources The Central Bank continued to acquire talent with the requisite competencies to support its strategic objectives.

As at September 30, 2015, the Bank’s staff complement was 653, (579 permanent and 74 on contract), compared with 628 employees (582 permanent and 46 on contract) in 2014.

The increase in contract staff was largely due to two major short term projects – a digitization project and support for the Central Statistical Office (CSO).
in keeping with During Financial Year 2015, the Central Bank continued to promote a culture of high performance and productivity its strategic mandate.

In line with this objective, enhancements were made to the Bank’s Performance Management System.

Key enhancements included the shift from quarterly to half-yearly employee assessment and full automation of the performance management process.

The Central Bank also enhanced its Competency Management framework.
The Human Resource Department successfully rolled out the job-specific assessment component so that the three levels of employee competency assessment (core, job family and job specific) are now fully automated.

Additionally, training and development component was significantly upgraded with the inclusion of an online training and development tool allowing for greater support in the creation of employees’ Training and Development Plans.
the conferences Talent development remained a priority for the Bank through staff exposure to relevant training programmes, and workshops designed to enhance their competencies and close competency gaps.

More than half of the employees participated local and overseas training interventions.

Coaching and development in-house, in 18 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 leadership interventions aimed at enhancing capability and supporting succession plans were also undertaken.
The Central Bank’s Graduates in Development programme continued to assist with transitioning employees into the graduate stream.

The Vacation Internship Programme (VIP) celebrated ten (10) years in existence with twenty five (25) interns participating during Financial Year 2015.

The Central Bank and the Banking Insurance and General Workers Union (BIGWU) concluded new Collective Agreements for staff covered under Bargaining Units 1 and 3 for the period 2015 to 2017.
The parties agreed to a salary increase of 14 per cent for staff in both Bargaining Units.K KNOWLEDGE MANAGEMENT Information Management The Knowledge and Department (KIM) continued its project to implement the Electronic Document and Records Management System (EDRMS).

Significant progress was also made towards enhancing digital services with the purchase of new financial and business electronic publications.
The Librarians also worked with the Human Resource Department to provide staff with access to reading material (print and electronic) via an online database subscription service, as part of its talent management initiatives.
WORKING IN A SAFE ENVIRONMENT established for Operational During Financial Year 2015, the management Risk systems Management, Health and Safety, and Business Continuity, continued the practices which inculcated a risk-aware and safe working environment capable of effectively responding to disruptive events.

The second Bank-wide Operational Risk Assessment was completed.

Results indicated keen awareness of existing operational risks and confirm appropriate mitigation strategies are in place.
In the area of business continuity, emphasis was focused on the Bank’s readiness activities, response procedures and test programme.

A major development was the establishment of an annual Business Continuity Assessment for the financial sector.

This Assessment enables the financial sector to strengthen its response and recovery capability by identifying areas which require support.
The Security Department celebrated its 30th year of existence, hosting the 3rd Annual Conference of Regional Central Banks Security Chiefs.

The theme “Greater Efficiency through an Integrated Regional Central Bank Security Network — A Case for Greater Synchronization with Relevant CARICOM Agencies” encouraged tremendous discussions among Security Chiefs.

The Department also in other areas such as actively participated Business Continuity Planning and Health and Safety.
19 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 Eid-ul-Fitr 2015 The 2015 Eid-ul-Fitr programme took an evening format open to members of the public.

The programme which was themed “An Appreciation of the Holy Quran” featured a lecture, cultural performances and a mini exhibition.

EXTERNAL COMMUNICATIONS In Financial Year 2015, the Central Bank continued its relationship with the national to advance community communication, through greater education and openness.
Divali Nagar 2014 The Money Museum held a successful outreach programme at the Divali Nagar in October 2014.

Exhibits included early forms of money, Trinidad and Tobago’s first $50 note and samples of destroyed currency.

Attendees learned about the history and development of currency in Trinidad and Tobago as well as the role and functions of the Central Bank.
Indian Arrival Day Exhibition 2015 For Indian Arrival Day 2015, the Central Bank held an art exhibition to expose the work of young artists from across the country.

Thirty-one (31) artists participated in the successful exhibition which ran for approximately six (6) weeks from April 30 to June 12, 2015.

Emancipation Exhibition 2015 For Emancipation celebrations 2015, the Central Bank held an art exhibition featuring young artists.
Twenty-five (25) artists participated in the exhibition which ran for approximately five (5) weeks from July 24 to August 21, 2015.
20 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 Eid-ul-Fitr 2015 Indian Arrival Day Exhibition 2015 Emancipation Exhibition 2015 Children’s Christmas Party 21 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 22 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 FINANCIAL STATEMENTS 2014-2015 23 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 25 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 26 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 27 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) ASSETS Foreign currency assets Foreign currency cash and cash equivalents Foreign currency investment securities Foreign receivables Subscriptions to international financial institutions International Monetary Fund - Holdings of Special Drawing Rights Local currency assets Local currency cash and cash equivalents Local currency investment securities Retirement benefit asset Accounts receivable and prepaid expenses Other assets Property, plant and equipment Notes Sep-15 Sep-14 $’000 $’ TOTAL ASSETS 82,431,619 79,666,968 LIABILITIES Foreign currency
 liabilities Demand liabilities - foreign International Monetary Fund - Allocation of Special Drawing Rights Accounts Payable Local currency liabilities Demand liabilities - local Accounts payable Provision for transfer of surplus to government Provisions CAPITAL AND RESERVES Capital General Reserve Retained Earnings 13 14 13 14 15 22 433,325 227,630 2,866,201 3,093,995 3,894,425 7,193,951 6,729,766 10,051,391 28,387,479 40,328,131 809,011 4,111,876 73,636,497 34,861,131 28,206,128 177,364 4,660,504 67,905,127 800,000
 800,000 1,171 1,601,171 800,000 766,279 144,171 1,710,450 TOTAL LIABILITIES, CAPITAL AND RESERVES 82,431,619 79,666,968 Governor Deputy Governor 28 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) Income from foreign currency assets Investment income Investment expense Notes Sep-15 $’000 Sep-14 $’000 437,969 (24,871) 413,098 329,520 (25,750) 303,770 Loss from currency translations (121,090) (33,088) Net (loss) realised on disposal and amortisation of investments (84,261) (252,010) Income from local currency assets Interest income Rental income Other income Decrease in provisions Total income Operating expenses Printing of notes and minting of coins Salaries and related expenses Interest paid Directors’ fees Depreciation Other operating expenses Increase in provisions Total operating expenses 16 207,747 18,672 17 17 18 890,721 2,971 69,303 962,995 510,955 3,053 307,871 821,879 159,251 - 1,329,993 840,551 81,157 331,662 80,007 826 35,317 101,292 - 630,261 89,933 136,956 81,395 992 33,135 100,793 67,459 510,663 Net surplus for the period 699,732 329,888 Total comprehensive income for the period 699,732 329,888 29 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in
 Trinidad & Tobago Dollars) Issued and Fully Paid Up Capital $’000 General Reserves Fair Value Reserve Retained Earnings Total $’000 $’000 $’000 $’000 Balance as at 1 October 2013 800,000 746,572 126,000 11,354 1,683,926 Net surplus for the period Transfer of surplus to Consolidated Fund Tranfer to General Reserve - - - - - - 329,888 329,888 - (177,364) (177,364) 19,707 - (19,707) - Reclassification Adjustment (126,000) (126,000) Balance as at 30 September 2014 800,000 766,279 - 144,171 1,710,450 Balance as at 1
 October 2014 800,000 766,279 Net surplus for the period Transfer of surplus to Consolidated Fund Tranfer to General Reserve - - - - - 33,721 Balance as at 30 September 2015 800,000 800,000 - - 144,171 1,710,450 699,732 699,732 - (809,011) (809,011) - - (33,721) - 1,171 1,601,171 30 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) Cash flows from operating activities Net surplus for the year before taxation Adjustments for: Depreciation Net gain on disposal of fixed assets Interest income Interest expense Dividend income Provisions Revaluation of Artwork Cash flow before changes in operating assets and liabilities Changes in operating assets and liabilities Decrease/(Increase) in accounts receivable & prepaid expenses Decrease/(Increase) in other assets Decrease in pension asset Increase in accounts payable and other liabilities Net cash flow from operations Cash flows from investing activities Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Net proceeds/(purchase of investments) from sale of investments Net repayment of loans and advances Interest received Dividends received Interest paid Net (increase) in International Monetary Fund Holding of Special Drawing Rights and Allocation account Payment to Consolidated Fund Net cash flow from/(used in) investing activities
 Cash flows from financing activities Lease payment Net cash flow used in financing activities Sep-15 $’000 Sep-14 $’000 699,732 329,888 35,317 (622) (1,327,156) 80,007 (1,534) (159,251) - (673,507) 33,135 (126) (839,090) 81,395 (12,917) 67,459 (1,105) (341,361) 2,202,018 21,987 96,709 3,029,469 (1,265,505) (27,443) (80,973) 4,165,866 4,676,676 2,450,584 (32,700) 848 (3,157,158) 95,143 1,391,435 1,534 (90,771) (43,476) 869 (1,366,036) 71,402 810,653 12,917 (95,758) (32,352) (3,747) (177,364) (392,550)
 (2,001,385) (1,005,726) 11,913 11,913 11,680 11,680 Net increase in cash and cash equivalents Foreign currency differences in monetary assets & liabilities Cash and cash equivalents, beginning of period Cash and cash equivalents, end of period 2,687,204 312,849 35,707,614 1,456,538 (400,762) 34,651,838 38,707,667 35,707,614 31 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 1.
Incorporation & principal activities out below.

These policies have been applied to all of the years presented.

The Central Bank of Trinidad and Tobago (the Bank) was established as a corporate body in 1964 under the Central Bank Act (Chapter 79:02).

The principal office is located at Eric Williams Plaza, Independence Square, Port of Spain, Trinidad and Tobago.
The Central Bank Act entrusts the Bank with a range of responsibilities, among which is the promotion of monetary, credit and exchange conditions most favourable to the development of the economy of Trinidad and Tobago.
The Bank has the exclusive right to issue and redeem currency notes and coins in Trinidad and Tobago, and is empowered, inter alia, to act as banker for, and render economic, financial and monetary advice to the Government of the Republic of Trinidad and Tobago (GORTT) and open accounts for and accept deposits from the Central Government, Local Government, statutory bodies, commercial banks and other financial institutions.
It also has the authority to make advances, purchase and sell discounted bills of exchange and promissory notes on behalf of the above named institutions, and to purchase and sell foreign currencies and securities of other Governments and international financial institutions.

The Bank is also responsible for protecting the external value of the currency, managing the country’s external reserves and taking steps to preserve financial stability.

2.
2.

Significant accounting policies The principal accounting policies applied in the preparation of the Financial Statements are set 32 a.

Basis of preparation These Consolidated Financial Statements have been prepared on the historical cost basis except as modified by the revaluation of “artwork” and “available-for-sale” and “fair value through profit or loss” financial assets.

These Consolidated Financial Statements have been prepared in accordance with the Central Bank Act (Chapter 79:02).
The Bank has chosen to adopt the recognition and measurement requirements of the International Financial Reporting Standards (IFRS) together with the presentation and disclosure framework in the preparation of these Consolidated Financial Statements the Bank considers it appropriate to do so having regard to its functions.
insofar as These Consolidated Financial Statements depart from the IFRS because of the nature of the Bank, including its role in the development of the financial infrastructure of the country as well as the regulations by which it is governed.

The IFRS which have not been fully adopted are: o IAS 21 – The Effect of Changes in Foreign Exchange Rates, requires that all unrealised gains and losses be accounted for through the Income Statement.
The Central Bank Act requires that the profit for the year be transferred to the Consolidated Fund but does not distinguish between realised and unrealised profits.
As such the Bank accounts for all unrealised gains and losses on Changes in Exchange Rates through a CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) Provision for Foreign Currency Exchange Rate Reserves.

o IAS 37 – Provisions, Contingent Liabilities and Contingent Assets, defines Provisions as liabilities of uncertain timing or amount.
The Central Bank Act imposes specific limitations on the scope of the Bank to create reserves and so prepare for certain unforeseen events.

The Bank has therefore established Provisions for specific types of transactions and obligations, which would more typically be reflected as various types of reserves under the IFRS.
See Note 15. o IAS 39 – Financial Instruments: Recognition and Measurement, requires that where an asset is classified as available-for-sale, the unrealised gains or losses on fair value movements should be recognised directly in Capital and Reserves through the Statement of Changes in Equity.

The Central Bank Act imposes specific limitation on the scope of the Bank to create reserves.
Therefore the Bank recognises its unrealized gains or losses on the availa- ble-for-sale investments under “Provisions” rather than “Reserves”.

In this way, the financial statements reflect a more realistic picture of the performance of the Bank.
risk on o IFRS 7 – Financial Instruments Disclosures, requires that an entity discloses very detailed information on its investments information on concentration including of investments; geographical information on investments and sensitivity analysis for each type of market risk.

The Bank’s investment of the country’s reserves is managed under strict governance procedures and the Central Bank Act requires that the Bank maintain a prudential level of confidentiality.
The accounting treatment adopted for each of these departures is defined in the accounting policies and notes below.

The impact of this is reflected in the improved stability in the operations of the Bank.

Management considers that these Financial Statements fairly represent the Bank’s financial position, financial performance and cash flows.

b.

Changes in accounting policies and disclosures i.


New and amended standards adopted by the Bank o IAS 32 – Financial Instrument: Presentation (Offsetting Financial Assets and Financial Liabilities) assets The amendments to this standard clarify the meaning of certain terms with respect to the qualifying criteria for off-setting liabilities.
The and financial amendments clarify that rights to set-off must not only be legally enforceable in a normal course of business, but must also be enforceable in the event of default and the event of bankruptcy or insolvency of all of the counterparties to the contract, including the reporting entity itself.

The amendments also clarify the application of the IAS 32 offsetting criteria to settlement systems which apply gross settlement mechanisms that are not simultaneous.
o IAS 36 – Impairment of Assets (Recoverable amount disclosures for Non-Financial Assets) The amendments clarify the disclosure fair value requirements less cost of disposal.
The requirement to in respect of 33 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) disclose the recoverable amount for each cash generating unit for which the carrying amount of goodwill or intangible assets with definite useful lives allocated to that unit was significant in comparison with the entity’s total carrying amount of goodwill or intangible assets with indefinite useful lives has been deleted by the amendments.
However, two additional disclosures have been added by the amendments: • Additional disclosure regarding the fair impaired assets value measurement of when the recoverable amount is based on fair value less cost of disposal Information about the discount rates that have been used when the recoverable amount is based on fair value less cost of disposal using present value technique.

• ii.
• ii.

New standards and interpretations that are not yet effective and have not been early adopted by the Bank There are new standards and amendments to standards and interpretations that are not yet effective for accounting periods beginning on or after January 1 2014 and have not been early adopted by the Bank.

The Bank intends to adopt these standards and interpretations, if applicable, when they become effective.
these new is currently assessing the impact The Bank of adopting standards and interpretations.

Some of these by nature are not expected to have a significant effect on the Bank’s financial statement.

However, the impact of adoption depends on the assets held by the Bank at the date of adoption; therefore it is not practical to quantify the effect at this time.
These standards and amendments include: 34 o IFRS 9 – Financial Instruments: Classification and Measurement (effective January 1, 2018) IFRS 9 which introduces new requirements for classifying and measuring financial assets will eventually replace IAS 39 - Instruments: Recognition and Financial Measurements.

classification of financial assets will depend on the Bank’s business model for managing its financial instruments and the contractual cash flow characteristics of the instrument.
For financial liabilities, the standard retains most of the IAS 39 requirements.

The Bank is still in the process of assessing IFRS 9’s full impact.

The o IFRS 15 – Revenue and Contracts with Customers (effective January 1, 2017) The new standard applies to revenue from contracts with customers and will replace all of the revenue standards and interpretations in IFRS, including IAS 18 – Revenue.
This standard provides a single, principles based five-step model to be applied to all contracts with customers.
The five steps in the model are as follows: • • Identify the contract with the customer Identify the performance obligations in the contract • Determine the transaction price • Allocate the transaction price to the performance obligations in the contract • Recognize revenue when (or as) the entity satisfiesa performance obligation The Bank is in the process of assessing the impact of this Standard.
o IAS 16 – Property, Plant and Equipment (amendment effective January 1 2016) This amendment was issued on May CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) depreciation it serves to clarify that 12, 2014 and not revenue-based considered an appropriate manifestation of consumption, and thus is prohibited.
This amendment will have no impact on the Bank’s financial statements.
is o IFRS 11 – Joint Arrangements (amendment effective January 1 2016) This amendment requires an entity acquiring an interest in a joint operation in which the activity of the joint operation constitutes a business combination (as defined by IFRS 3 – Business Combinations) to: • Apply to the extent of its shares, all of the business combinations accounting principles in IFRS 3 and other IFRSs, except those that conflict with the requirements of IFRS 11 the required in IFRS 3 and other IFRS regarding business combination information • Disclose This amendment is not anticipated to have a significant impact on the Bank’s financial statements.
c. Consolidation The Consolidated Financial Statements comprise the financial statements of the Bank and its subsidiaries for the year ended 30 September 2015.

The financial statements of the Bank’s subsidiaries are prepared for the same reporting year as the Bank, using consistent accounting policies.

All intra-group balances, transactions, income and expenses are eliminated in full.

Subsidiaries are fully consolidated from the date on which control is transferred to the Bank.
Control is achieved where the Bank has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Non-controlling interests represent the portion of profit or loss and net assets of subsidiaries not owned, directly or indirectly, by the Bank.

Currently, there are no non-controlling interests as the subsidiaries being consolidated are owned 100% by the Bank.
Section 36(g) of the Central Bank Act empowers the Bank, with the approval of the Minister of Finance, to acquire, hold and sell shares or other securities of any statutory body or company registered under the Companies Act for the purpose of promoting the development of a money or securities market or for financing the economic development of Trinidad and Tobago.
The Bank has interests in a number of institutions – the Trinidad and Tobago Unit Trust Corporation, the Deposit Insurance Corporation, Caribbean Credit Rating and Information Agency, Inter-bank Payments System Limited, CB Services Limited, the Office of the Financial Services Ombudsman and the Financial Inclusion Development Agency (FIDA).
In all but the Deposit Insurance Corporation and CB Services Limited, the Bank has a minority financial interest, in fulfilment of the Bank’s role to help promote the development of the country’s financial infrastructure.

The Deposit Insurance Corporation was established for the protection of depositors in the domestic financial system.
While the share capital was paid up by the Bank, the Deposit Insurance Corporation was always conceived to be a separate and independent institution with its own mandate and operates as such.
The Financial Statements of these related enterprises, with the exception of CB Services 35 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) Limited and FIDA, have not been consolidated with those of the Bank.
Extracts of the Parent’s Financial Statements are included in Note 27. d. Foreign currency translation i. Functional and presentation currency The Financial Statements are presented in Trinidad and Tobago dollars, which is the Bank’s functional and presentation currency.

ii.
ii.

Transactions and balances Monetary assets and liabilities denominated into in foreign currencies are translated Trinidad and Tobago dollars at the rates of exchange prevailing at the close of business at the Statement of Financial Position date.

Translation gains or losses, at year-end exchange rates of these monetary and liabilities, are non-monetary assets and recognised in Provisions – Foreign Currency Exchange Rate Reserves.
Foreign currency transactions are translated at the exchange rates prevailing on the transaction dates.

Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in the Statement of Comprehensive Income.

iii.

Special Drawing Rights Transactions with the International Monetary Fund (IMF) are recorded at the local currency 36 equivalent of Special Drawing Rights (SDRs) using rates notified by the IMF.

SDRs are defined in terms of a basket of currencies.
To revalue the Bank’s holdings of SDRs, the value of the SDR was calculated as a weighted sum of the exchange rates of four major currencies (the US dollar, euro, Japanese yen and the pound sterling) against the Trinidad and Tobago dollar.

The TT:SDR rate as at 30 September 2015 was 0.112042. e. Critical accounting estimates and judgments The Bank makes estimates and assumptions that affect the reported amounts of the assets and liabilities within the financial year.
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events.

The resulting accounting estimates will seldom equal the related actual results.

The estimates and assumptions that have a significant risk of causing material adjustments to the carrying amounts of assets and liabilities within the next financial year are illustrated below: i.
Estimated pension and post employment medical plan of estimate the pension and The post-employment medical plan obligations, in relation to the defined benefit plans operated by the Bank on behalf of its employees, are primarily based on the estimation of independent qualified actuaries.

The value of the obligations is affected by the actuarial assumptions used in deriving the estimate.
CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) ii.

Provision for bad and doubtful debts f. Cash and cash equivalents Pursuant to Section 35(4) of the Act, provisions are made for bad and doubtful debts in the accounts.
In this regard, the relevant assets are shown in the Statement of Financial Position net of the amount which, in the opinion of the Bank, requires a specific provision.

For the purposes of the Statement of Cash Flows, cash and cash equivalents comprise balances with less than or equal to three months to maturity from the date of acquisition.

It consists of cash, balances with other banks, short term funds and highly liquid investments, including fixed deposits and reverse repurchases.

iii.
iii.

Fair value of financial instruments g. Investment securities Where the fair value of financial assets and financial liabilities recorded on the statement of financial position cannot be derived from active markets, they are determined using a variety of valuation techniques that include the use of mathematical models.

The inputs to these models are derived from observable market data where possible, but where observable market data are not available, judgment is required to establish fair values.
The judgments include considerations of liquidity and model inputs such as volatility for longer dated derivatives and discount rates, prepayment rates and default rate assumptions for asset backed securities.

iv.

Estimated market value of artwork The estimated replacement value of artwork was primarily based on the valuation of an independent art consultant.

The estimated market value was established based on the valuation report of the condition of the artwork.
The classification of financial instruments at initial recognition depends on the purpose intention for which the and management’s financial instruments were acquired and their characteristics.

All financial instruments are measured initially at their fair value plus transaction costs, except in the case of financial assets and financial liabilities which are recorded at fair value through profit or loss.
The Bank classifies its investment securities in the following four categories: “Held to maturity”, “Available-for-sale”, “Loans and advances” and “Fair value through profit or loss”.

i.

Held to maturity Investments classified as held to maturity are non-derivative financial assets with fixed or determinable payments and fixed maturity that the Bank’s management has the positive intention and ability to hold to maturity.
After initial measurement, held to maturity financial investments are subsequently measured at amortised cost using the effective interest rate method (EIR) less impairment.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees that are 37 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) an integral part of the effective interest rate.

Interest on these investments is recognised in the Statement of Comprehensive Income.

ii.
ii.

Available-for-sale These investments are intended to be held for an indefinite period of time, and may be sold in response to needs for liquidity or to meet the goals of the strategic asset allocation approved by the Board.

They are initially recognised at fair value, (which includes transaction costs), and are subsequently re-measured at fair market value.

Unrealised gains and losses on these investments are recognised in Provisions – Revaluation Reserve at Market Value.
Regular purchases and sales of financial assets are recognised on the trade date, which is the date on which the Bank commits to purchase or sell the asset.

When the securities are disposed of, the related accumulated fair value adjustments are included in the Statement of Comprehensive Income as realised gains and losses from investment securities.

The Bank has investments in several related companies which are accounted for as avail- able-for-sale investments (see Note 6).
None of these equity investments have a quoted market price in an active market and therefore their fair value cannot be reliably measured.

The cost of these equity investments is therefore considered a reasonable approximation of fair value.

38 iii.

Loans and advances less any provision for Loans and advances are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.
They arise when the Bank provides money or services directly to a counterparty, with no intention of trading the receivable and are carried at their expected realisable value, impairment.

Interest arrears are accrued and provided for in the current financial period.

Determination of allowances for losses is based on an annual appraisal of each loan or advance.

Specific provisions are made when, in the risk or opinion of management, credit other factors make full recovery doubtful.
Provisions created, including increases and decreases, are recognised in the Statement of Comprehensive Income.

iv.

Fair value through profit or loss Financial assets at fair value through profit or loss may only be made if the financial asset either contains an embedded derivative or will be managed on a fair value basis in accordance with a documented risk management strategy, or if designating it (and any financial liability) at fair value will reduce an accounting mismatch.
Derivatives are initially recognised in the Statement of Financial Position at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at their fair value.

Fair values are obtained from quoted market prices in active markets, including recent market transactions, or valuation techniques, as appropriate.
The CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) best evidence of the fair value of a derivative at initial recognition is the transaction price (i.e., the fair value of the consideration given or received).
A derivative is a financial instrument or other contract within the scope of IAS 39 with all three of the following characteristics: a. b. in a specified its value changes in response to the change interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract (sometimes called the ‘underlying’); it requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors; and c. it is settled at a future date.
h. Recognition and derecognition of financial instruments The Bank uses trade date accounting when recording financial asset transactions.

Financial assets are derecognised when the contractual right to receive the cashflows from these assets has ceased to exist or the assets have been transferred and substantially all the risks and rewards of ownership of the assets are also transferred.

Financial liabilities are derecognised when they have been redeemed or otherwise extinguished.
i. Impairment of financial assets The Bank assesses at each statement of financial position date whether there is any objective evidence that a financial asset or a group of financial assets is impaired.
A financial asset or a group of financial assets is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events that has occurred after the initial recognition of the asset (an incurred ‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated.
Evidence of impairment may include indications that the borrower or a group of borrowers is experiencing significant financial difficulty, the probability that they will enter bankruptcy or other financial reorganisation, default or delinquency in interest or principal payments and where observable data indicates that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.

i.
Financial assets carried at amortised cost is objective evidence loss has been that an If there incurred, the impairment is measured as the amount of the loss difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future expected 39 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) credit losses that have not yet been incurred).
The carrying amount of the asset is reduced through the use of an allowance account and the amount of the loss is recognised in the income statement.

Interest income continues to be accrued on the reduced carrying amount and is accrued using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss.

The interest income is recorded as part of ‘Interest income’.
Loans together with the associated allowance are written off when there is no realistic prospect of future recovery and all collateral has been realised or has been transferred to the Bank.

If, in a subsequent year, the amount of the estimated impairment loss increases or decreases because of an event occurring after the impairment was recognised, the previously recognised impairment loss is increased or reduced by adjusting the allowance account.
If a future write–off is later recovered, the recovery is credited to the Statement of Comprehensive Income.

The present value of the estimated future cash flows is discounted at the financial asset’s original effective interest rate (EIR).

If a loan has a variable interest rate, the discount rate for measuring any impairment loss is the current EIR.
If the Bank has reclassified trading assets to loans and advances, the discount rate for measuring any impairment loss is the new EIR determined at the reclassification date.

ii.

Available-for-sale financial investments For available-for-sale financial investments, the Bank assesses at each statement of financial position date whether there is objective evidence that an investment is impaired.
40 In the case of debt instruments classified the Bank assesses as available-for-sale, individually whether is objective there evidence of impairment based on the same criteria as financial assets carried at amortised cost.

However, the amount recorded for impairment is the cumulative loss measured as the difference between the amortised cost and the current fair value, less any impairment loss on that investment previously recognised in the income statement.
Future interest income is based on the reduced carrying amount and is accrued using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss.

The interest income is recorded as part of ‘Interest and other income’.
If, in a subsequent period, the fair value of a debt instrument increases and the increase can be objectively related to a credit event loss was occurring after the recognised in the income statement, the impairment is reversed through the income statement.

impairment loss include a ‘significant’ or In the case of equity investments classified as available-for-sale, objective evidence would also ‘prolonged’ decline in the fair value of the investment below its cost.
Where there is evidence of impairment, the cumulative loss measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that investment previously recognised in the is removed from equity and recognised in the income statement.

losses on equity investments are not reversed through the income statement; increases in the fair value after impairment are recognised in Provisions – Revaluation Reserve at Market Value.
income statement – Impairment CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) j.

Fair Value Measurement The Bank measures certain financial instruments at fair value at each reporting date.
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value measurement is based on the presumption that the orderly sale of asset or transfer of liability takes place in the principal market for the asset or liability.

In the absence of a principal market, the most advantageous market for the asset or liability is used as the basis for fair value measurement.
The fair value estimate of an asset or liability is based on the assumptions that market participants would use when pricing the asset or liability, assuming the market participants act in their best economic interest.

The fair value for financial instruments traded in active markets at the reporting date is based on their quoted price.
For all other financial instruments not traded in an active market, the fair value is determined by using valuation techniques considered to be appropriate in the circumstances for which sufficient data is available and for which the use of relevant observable inputs are maximised.

Valuation techniques include the market approach, the cost approach and the income approach.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the 3 levels of the fair value hierarchy based on the lowest level input that is significant to the entire fair value measurement.
The levels of the fair value hierarchy are: Level 1– Quoted (unadjusted) market prices in active markets for identical assets of liabilities Level 2– Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable Level 3– Valuation technique for which the lowest level input that is significant to the fair value measurement is unobservable Further details on fair value measurement are included in Note 7. k. Offsetting financial instruments Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously.
l. Employee benefits i.

Pension Benefits The Bank operates a Defined Benefit Plan (Plan) for all its eligible employees.

The assets of the Plan are held in a separate trustee administered plan.
A Defined Benefit Plan is a pension plan that defines the amount of pension benefit that an 41 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation.

The pension benefit is based on the final salary of the employee.
subsidy is provided for premium due for member only contribution.

The method of accounting, assumptions and the frequency of valuations are similar to those used for the defined benefit pension scheme.
liability recognised An asset or in the Statement of Financial Position in respect of the Plan is the present value of the defined benefit obligation at the Statement of Financial Position date less the fair value of the Plan’s assets, together with adjustments for any effect of limiting the net defined benefit to the asset ceiling.

The Plan’s accounting costs are assessed on the basis of the Projected Unit Credit Method.

A valuation is done every three years by independent actuaries.
The last triennial valuation was performed as at 30 September, 2014 and this was completed in June 2015.

In accordance with the advice of the actuaries, the Plan’s costs of providing pensions are charged to the Statement of Comprehensive Income in order to spread the regular cost over the service lives of employees.

The Bank has adopted the amendments to IAS 19; therefore actuarial gains and losses would no longer be deferred but recognised immediately in the period in which they occur.
is funded by payments The Plan from employees and the Bank, taking into account the independent qualified actuaries.

recommendations of ii.

Post-employment medical benefits The Bank operates a post-employment medical its retirees, whereby a benefit scheme for 42 m. Notes and coins The stock of notes and coins is stated at original cost.

Issues are accounted for using the First In First Out Method.

All associated costs such as shipping, handling and insurance are expensed immediately.
Printing and minting costs are expensed when the units of currency are issued and put into circulation.

n. Leases i.

Operating leases (as lessee) The leases entered into by the Bank are primarily operating leases.

The total payments made under operating leases are charged to the Statement of Comprehensive Income on a straight line basis over the period of the lease.
When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognised as an expense in the period in which termination takes place.

ii.

Finance leases (as lessor) Where the Bank grants long-term leases on property, the land and the building are treated as a finance lease.
These finance leases are valued at the lower of the gross investment less principal payments and any provisions in the lease, and the present value of the minimum lease payments CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) receivable at the Statement of Financial Position date and are shown as receivable.
Lease income is recognised over the term of the lease using the net investment method, which reflects a constant periodic rate of return.

o.

Computer software Bank acquires computer The software programmes to assist in the performance of its normal activities.

These amounts are capitalised on the basis of the cost incurred to acquire and bring to use the specific software.

These costs are amortised using the straight line method on the basis of the expected useful life of five years.
Costs associated with maintaining computer software programmes are recognised as an expense as incurred.

p. Property, plant & equipment Property, plant and equipment are recorded at cost less accumulated depreciation.

Cost includes the purchase price of the assets plus any further cost incurred in bringing the asset to its present condition and location.

Capital works-in-pro- gress are recorded at cost but are not depreciated until the asset is available for its intended use.
Any additions or improvements to assets during the year, which significantly add to the value of, or extend the useful life of such assets, are capitalised as part of the cost.

All other repairs and maintenance are expensed in the Statement of Comprehensive Income during the financial period in which they were incurred.

When an asset is retired or sold, any gain or loss on disposal is recognised in the Statement of Comprehensive Income.
Artwork, which is classified under Fixtures and is Fittings, is initially carried at cost.

The Bank’s independently and professionally Artwork valuated every three years and is carried at its revalued amount, being its fair value at the date of revaluation.
Any increase in the carrying amount as a result of the revaluation is recognised in equity as a provision for revaluation of artwork except to the extent that the increase reverses a revaluation deficit of the Artwork previously recognised in the Statement of Comprehensive Income.

The last revaluation was carried out in September 2013.

Depreciation is charged on a straight-line basis and is applied over the estimated useful lives of the assets, as shown below.

Land is not depreciated.


Building Building improvements Leasehold properties Motor vehicles Machinery and equipment Computer hardware Furniture Fixtures and fittings - - - - - - - - 40 years 10 years over the period of the lease 3 years 1.5 to 5 years 3 years 10 years 10 years q.

Taxation Section 55(1) of the Central Bank Act exempts the Bank from the provisions of any Act relating to income taxation, company taxation and from the payment of stamp duty.
Its subsidiary, CB Services Limited, is subject to corporation tax at a rate of 25% on chargeable income in accordance with the Corporation Tax Act.
43 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) taxation arises Deferred temporary differences between the tax base of assets and liabilities, and their carrying amounts in the Financial Statements.

from an active market and the fair value cannot be reliably determined.
For those that are quoted in an active market, the instrument is carried at fair value based on the closing price at year end.

CB Services Limited currently does not have any temporary difference and as such no adjustment for deferred taxation is required.

u.

Capital r. Provisions The Bank has a policy of providing for all known and foreseeable losses in the accounts and has adopted a prudent approach to provisioning.
Provisions shown on the Statement of Financial Position include the Foreign Currency Translation Reserves, Gold Revaluation Reserves and Market Value Revaluation Reserves.

The entire capital of the Bank is held by the GORTT.
Provision is made in Section 34(5) of the Central Bank Act for the Paid-up portion of the authorised capital of the Bank to be increased each year by an amount of not less than 15 percent of the amount to be paid into the Consolidated Fund, until the Paid-up portion of the Authorised Capital is equal to the Authorised Capital.

Currently the Paid up portion of the Authorised Capital of the Bank is equal to the Authorised Capital (see Note 22).
s. Gold Reserve v. Reserves Gold is valued at the market price prevailing at the year end.

No distinction is made between the price and currency revaluation differences for gold.

Instead, a single gold valuation is accounted for on the basis of the price in Trinidad and Tobago dollars per troy ounce of gold.

t. Subscriptions to International Financial Institutions institutions international financial The Bank acts as financial agent for the GORTT with (See Note 10).
In order to provide a more appropriate presentation, these amounts include the portion of the GORTT’s contributions issued to these organisations in the form of Promissory Notes where applicable.
These balances are stated at cost once there is no quoted market price in Provision is made in Sections 35(3) and 35(6) of the Central Bank Act for the Bank to place in the General Reserve Fund or the Special Reserve Funds, or in both, an amount not exceeding ten percent (10%) of the net surplus of the Bank for each financial year, until the General Reserve Fund is equal to the Authorised Capital.
At 30 September 2015, the General Reserve Fund increased by $33.7 million equalling to the amount of the Authorised capital of $800 million.

This amount represents 4% of the net surplus of the Bank.

The remaining 96% shall be transferred to the Consolidated Fund.
w. Transfer of Surplus The Central Bank Act states under section 35(5) that at the end of each financial year, after allowing for the amount referred to in section 44 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 35(3), the net profit of the Bank shall be paid into the Consolidated Fund.

x.

Revenue Recognition i.


Interest income and interest expense Interest income and expense are recognised in the Statement of Comprehensive Income for all interest-bearing instruments on an accruals basis.

Interest income includes coupons earned on fixed income investments and accrued discount and premium on treasury bills and other discount instruments.

ii.

Dividend income Dividend income is recognised when the right to receive payment is established.

iii.
iii.

Other income and expenses standard of conduct required of staff and specific internal control systems designed around the particular characteristics of various Bank activities.

In addition to operational risk, the Bank is exposed to various risks arising from its responsibility for the management of the official foreign currency reserves of the country.
These risks and the measures taken to mitigate them in the portfolio are as follows: Credit risk The Bank takes on exposure to credit risk which is the risk that a counterparty will be unable to pay amounts in full when due.

Credit risk is mitigated by the establishment of counterparty concentration limits and by the establishment of minimum rating standards that each counterparty must attain.

All other significant income and expenditure are accounted for on the accruals basis.
items of Currency risk y. Comparatives Where necessary comparative figures have been adjusted to take into account changes in presentation in the current year.

3.

Financial risk management Operational risk is the risk of loss in both financial and non-financial terms resulting from human error and the failure of internal processes and systems.
Operational risk management includes bank-wide corporate policies which describe the The Bank takes on exposure to fluctuations in the prevailing foreign currency exchange rates on its foreign currency portfolios.

Management seeks to mitigate currency risk by aligning the currency composition of the foreign portfolio to the settlement of trade and external debt.

Interest rate risk The Bank invests in securities and maintains demand deposit accounts as a part of its normal course of business.
Interest rate risk is the risk of loss arising from changes in prevailing interest rates.

The Bank manages this risk by establishing duration limits for the portfolio.

45 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 Liquidity risk The Bank is exposed to daily calls on its available cash resources from overnight deposits, current accounts and maturing deposits.
Liquidity risk is managed by the grouping of reserves into several tranches according to liquidity requirements, and defining specific asset classes and duration limits for each tranche, consistent with its defined liquidity objectives.

46 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 4.
Cash and cash equivalents Currency on hand Balances held with banks Repurchase agreements Fixed deposits Short-term investments Represented by: Foreign currency - cash and cash equivalents Currency on hand Balances held with banks Repurchase agreements Fixed deposits Short-term investments Local currency - cash and cash equivalents Cash on hand Balances held with banks Sep-15 $’000 Sep-14 $’ Local currency - balances with banks This balance is comprised mostly of cheque deposits made by the GORTT which are sent for clearance at the commercial banks.
These are settled against commercial banks’ reserve balances on the next working day.

47 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 5.
Investment securities Foreign currency investment securities Available for sale Loans and advances Local currency investment securities Available for sale - Local securities Loans and advances Sep-15 $’000 Sep-14 $’000 26,232,196 142,534 26,374,730 28,577,388 168,762 28,746,150 4,329,430 160,218 4,489,648 29,588 159,133 188,721 Total investment securities 30,864,378 28,934,871 Available for sale investments Foreign currency Amortised Cost Appreciation in Market Value Appreciation in Foreign Currency Local currency Bonds ( Note 24) Investments in related enterprises (Note 6) 26,141,556 (145,502) 236,142 26,232,196 28,597,889 (267,219) 246,718 28,577,388 4,325,008 4,422 4,329,430 25,166 4,422 29,588 Total available for sale investments 30,561,626 28,606,976 Loans and advances Foreign currency Cost Local currency Loans and advances Provision for doubtful debts 142,534 142,534 168,762 168,762 160,260 (42) 160,218 229,173 (70,040) 159,133 Total loans and advances 302,752 327,895 Total investment securities 30,864,378 28,934,871 48 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 6.
Investment in related enterprises Cost Sep-15 $’000 Sep-14 $’000 4,422 4,422 The Bank has an interest in the following related enterprises to help promote the development of the country’s financial infrastructure: Trinidad and Tobago Unit Trust Corporation Deposit Insurance Corporation Trinidad and Tobago Interbank Payments System Sep-15 $’000 Sep-14 $’000 2,500 1,000 922 2,500 1,000 922 4,422 4,422 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 businesses, and to facilitate the settlement of these complaints.

The Ombudsman is provided with a secretariat drawn from or approved by the Central Bank.

The remuneration of the Financial Services Ombudsman and the costs of establishing the Ombudsman scheme are borne by the Bank, while recurrent operational costs of the Office are funded by the financial institutions.
49 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 7.

Fair value of assets and liabilities a.
Fair Value Hierarchy The fair value of the Bank’s assets and liabilities are analysed by the fair valuation hierarchy below: Recurring fair value measurement of assets and liabilities Quantitative disclosures fair value measurement hierarchy for assets as at 30 September 2015 Financial Assets Asset-backed Securities: Auto Loan Receivable Credit Card Receivable Other Asset-backed Securities Corporate Bonds Mortgage-backed Securities: Federal Home Loan Mortgage Corporation (FHLMC) Federal National Mortgage Association (FNMA) Government National Mortgage Association (GNMA) 1 Collateralized Mortgage backed Securities (CMO) Government Issues Gold Investments in related enterprises Municipals Artwork Total Level 1 $’000 Level 2 $’000 Level 3 $’000 Total $’ CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 7.
Fair value of assets and liabilities cont’d Quantitative disclosures fair value measurement hierarchy for assets as at 30 September 2014 Assets Asset-backed Securities: Auto Loan Receivable Credit Card Receivable Corporate Bonds Mortgage-backed Securities: Mortgage-backed Securities: Federal Home Loan Mortgage Corporation (FHLMC) Federal National Mortgage Association (FNMA) Government National Mortgage Association (GNMA) 1 Collateralized Mortgage backed Securities (CMO) Other Mortgages Government Issues Gold Investment in related enterprises Municipals Artwork Total Level 1 Level 2 Level 3 $’000 $’000 $’000 Total $’ CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 7.
Fair value of assets and liabilities cont’d The Bank had no traded financial liabilities at the reporting date.

Assessing the significance of a particular input to the entire measurement requires judgement, taking into account factors specific to the asset or liability.
Furthermore, the estimated fair values of certain financial instruments have been determined usingavailable market information or other appropriate valuation methodologies that require judgement in interpreting market data and developing estimates.

Consequently, the estimates made do not necessarily reflect the amounts that the Bank could realise in a current market exchange.

b.
b.

Transfers between Fair Value Hierarchy Levels There were no transfers between the hierarchy levels during the financial year (2014-2015) c. Level 1 fair values Assets and liabilities categorized as Level 1 are those whose values are based on quoted market prices in active markets.

No adjustments are made to the quoted price when determining the fair value of these assets.
d. Level 2 fair values Assets and liabilities categorized as Level 2 are valued based on a compilation of primarily observable market information.

This includes broker quotes in a non-active market, alternative pricing sources supported by observable inputs and investments in securities with fair values obtained via fund managers.

e. Level 3 fair values The Bank investments in several related companies are accounted for as available-for-sale investments (see Note 6).
However, none of these equity investments have a quoted market price in an active market and therefore their fair value cannot be reliably measured.

The cost of these equity investments is therefore considered a reasonable approximation of fair value.

52 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 8.
Retirement benefit asset Consolidated statement of financial position obligations for: - Pension plan - Post-retirement medical plan a) Pension plan Defined benefit obligation Fair value of assets IAS 19 net defined asset Reconciliation of opening and closing defined benefit assets Defined benefit asset at prior year end Increase/(Decrease) in pension asset Net pension cost Re-measurements of net define benefit asset/liability Bank contribution paid Sep-15 $’000 Sep-14 $’000 202,256 (22,716) 179,540 297,799 (21,550) 276,249 Sep-15 $’000 Sep-14 $’000 (645,023) 847,279 202,256 (541,319) 839,118 297,799 (297,799) (219,666) 5,446 95,996 (5,899) 95,543 13,637 (86,407) (5,363) (78,133) Closing defined benefit asset (202,256) (297,799) Amounts recognised in the earnings statement Current service cost Net Interest on Net Defined Benefit Liability/(Asset) Expense Allowance Net pension cost 22,369 (18,180) 1,257 5,446 23,790 (11,222) 1,069 13,637 Re-measurements of net defined benefit asset/liability Experience losses/(gains) 95,996 (86,407) Actuarial assumptions Discount rate Expected return on plan assets Projected future rate of salary increase Value of Pension Scheme Assset 6.00% n/a 5.18% 6.00% n/a 5.16% Based on Estimated Fair Value at Balance Sheet Date 53 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 8.
Retirement benefit asset–cont’d b) Post-Employment Medical Plan Sep-15 $’000 Sep-14 $’000 IAS 19 net defined obligation (22,716) (21,550) Reconciliation of opening and closing defined benefit liability Defined benefit liability (Decrease)/Increase in plan Net benefit cost Re-measurements of net define benefit asset/liability Bank contribution paid (21,550) (24,390) (2,537) 1,031 340 (1,166) (2,633) 5,023 450 2,840 Closing defined benefit liability (22,716) (21,550) Amounts recognised in the earnings statement Current service cost Interest on defined benefit obligation Net benefit cost Return on plan assets: The plan holds no assets Actuarial assumptions Medical cost increases (1,255) (1,282) (2,537) (1,422) (1,211) (2,633) 5.00% 5.00% 54 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 9.
Accounts receivable and prepaid expenses Foreign receivables Trade receivables - investments sold Foreign interest receivable Other receivables Accounts receivable and prepaid expenses Interest receivable on domestic investments Amounts recoverable from CLF/GORTT (Note 24) Other receivables Prepayments Suspense accounts Value added tax 10.
Subscriptions to International Financial Institutions Banco Latino Americano De Exportaciones Caribbean Development Bank Caribbean Information and Credit Rating Services Ltd Corporacion Andina de Formento Inter-American Development Bank International Bank for Reconstruction and Develop- ment International Development Association International Finance Corporation International Monetary Fund Sep-15 $’000 Sep-14 $’000 3,664,721 87,904 6,930 3,759,555 263 2,142,070 24,201 8,449 (11) 897 5,901,435 94,952 3,611 5,999,998 57,494 2,123,625 18,381 9,596 31 53 2,175,869 2,209,180 Sep-15 $’000 23,595 8,194 1,665 683,895 6,694 Sep-14 $’000 31,334 8,194 1,668 - 6,694 111,909 6,343 333 2,995,305 3,837,933 113,054 5,558 333 3,233,359 3,400,194 In October 2014, the Bank subscribed to Series C shares of Common Capital Stock of Corporacion Andina de Formento (CAF) at a cost of $684.3 million.
CAF is a development Bank comprised of various countries and Banks from Latin America, Caribbean andEurope.

The holdings in Banco Latino Americano De Exportaciones (Bladex) are based on a quoted market price off the New York Stock Exchange of US$23.15/share as at 30 September 2015.

55 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 11.
Other Assets Leased asset (a) Stock of notes and coins (b) Consumables Sep-15 $’000 Sep-14 $’000 118,534 107,519 1,926 227,979 130,447 129,889 1,543 261,879 a.

Leased asset In 1995 the Bank entered into a thirty-year finance lease agreement with the GORTT for the purchase of the Ministry of Finance Building with a rate of interest of 2%.
Sep-15 $’000 Sep-14 $’000 Gross receivable due Present value of minimum lease payments Total unearned finance income 130,700 118,534 12,166 145,222 130,447 14,775 Gross receivables due Not later than one year Later than one year but within five years Later than five years Less: unearned finance income Net investment in finance leases 14,522 58,089 58,089 130,700 (12,166) 118,534 14,522 58,089 72,611 145,222 (14,775) 130,447 The net investment in finance leases is analysed as follows: Not later than one year Later than one year but within five years Later than five years Sep-15 $’000 Sep-14 $’000 14,237 54,213 50,084 118,534 14,237 54,213 61,997 130,447 56 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 11.
Other assets cont’d b.
Stock of notes and coins Notes Coins Inventory of notes Opening Balance Cost of Notes issued Purchase of Notes Write-off (Destruction) Closing Balance Inventory of coins Opening Balance Cost of coins issued Purchase of coins Closing Balance Sep-15 $’000 Sep-14 $’000 73,734 33,785 107,519 94,381 35,508 129,889 Sep-15 $’000 Sep-14 $’000 94,381 (42,540) 21,893 - 73,734 81,156 (41,192) 68,174 (13,757) 94,381 Sep-15 $’000 Sep-14 $’000 35,508 (36,722) 34,999 33,785 21,428 (33,986) 48,066 35,508 57 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 12.
Property, plant and equipment Land & Building Leasehold Property Machinery & Equipment Computer Equipment Furniture, Fixture & Fittings Capital work in progress Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 As at 30 September 2015 Net book value Balance b/fwd 01 Oct 2014 Transfer Additions Disposals 140,154 562 340 - 10,679 - - - 19,943 15,886 8,601 2,725 (213) 1,188 5,629 (8) 31,255 - 1,342 (5) Depreciation for the year (14,517) (7) (10,153) (7,124) (3,516) 2,254 220,171 (10,351) - 22,664 32,700 - - (226) (35,317) Balance c/fwd 126,539 10,672 20,903 15,571 29,076 14,567 217,328 Represented by: Cost 437,522 10,923 109,708 92,144 57,018 14,567 721,882 Accumulated depreciation (310,983) (251) (88,805) (76,573) (27,942) - (504,554) 126,539 10,672 20,903 15,571 29,076 14,567 217,328 Land & Building Leasehold Property Machinery & Equipment Computer Equipment Furniture, Fixture & Fittings Capital work in progress Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 As at 30 September 2014 Net book value Balance b/fwd 01 Oct 2013 Transfer Additions Disposals Revaluation adjustment 133,028 21,504 173 - - 7,898 2,789 - - - 17,850 2,072 8,928 (520) - 11,724 3,588 7,424 (197) 27,118 1,202 5,392 (26) - 1,105 Depreciation for the year (14,551) (8) (8,387) (6,653) (3,536) 11,850 209,468 (31,155) - 21,559 43,476 - - - (743) 1,105 (33,135) Balance c/fwd 140,154 10,679 19,943 15,886 31,255 2,254 220,171 Represented by: Cost 436,620 10,923 116,068 89,792 59,265 2,254 714,922 Accumulated depreciation (296,466) (244) (96,125)
 (73,906) (28,010) - (494,751) 140,154 10,679 19,943 15,886 31,255 2,254 220,171 58 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 12.
Property, plant and equipment cont'd Land & Building Leasehold Property Machinery & Equipment Computer Equipment Furniture, Fixture & Fittings Capital work in progress Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 As at 30 September 2013 Cost 414,942 Accumulated depreciation (281,914) 133,028 8,134 (236) 7,898 106,756 79,179 52,248 11,850 673,109 (88,906) (67,455) (25,130) - (463,641) 17,850 11,724 27,118 11,850 209,468 The Bank’s artwork is stated at revalued amounts determined by an independent, qualified art consultant.
An evaluation of artwork was carried out in September 2013 and was based primarily on similar artwork sold in both the local and international art market over the past five years (see Note 2 (o)).

The carrying amount of artwork if it was stated at cost would be as follows: Cost Sep-15 Sep-14 $’000 $’000 2,649 2,649 There was no movement in the revaluation surplus for artwork from September 2014 to September 2015.
Compensation of $113,341 was received from insurance claims for a motor vehicle that was written off during the reporting period.

This amount is included in the Statement of Comprehensive Income.

59 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 13.
Demand liabilities Demand liabilities - foreign Foreign deposits Government special accounts Demand liabilities - local Notes in circulation Coins in circulation Deposits by commercial banks Deposits by non-banking financial institutions Statutory deposits - insurance companies Deposits by government and government agencies Deposits by other current accounts Deposits by regional and international institutions Sep-15 $’000 Sep-14 $’000 3,713 429,612 433,325 5,396 222,234 227,630 Sep-15 $’000 Sep-14 $’000 8,270,823 218,251 22,758,976 394,589 42,074 (5,526,344) 2,019,006 210,104 28,387,479 7,211,972 206,632 26,159,804 393,373 49,417 (2,585,589) 3,388,782 36,740 34,861,131 Deposits by financial institutions The statutory cash reserves for commercial banks and non-bank financial institutions remained unchanged at 17 per cent and 9 per cent of their prescribed liabilities, respectively.
The required reserve balances held by commercial banks increased by 18 per cent as at September 2015 while requirements for non-banks also increased by 15.5 per cent.

This was as a result of their higher prescribed liabilities during the period under review.

In addition to the statutory cash reserve, the commercial banks continued to hold a secondary reserve of 2 per cent of their prescribed liabilities.

A fixed rate of 0.25 per cent was paid on these holdings.
60 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 13.

Demand liabilities cont’d As part of the Central Bank’s monetary policy to withdraw excess liquidity, commercial banks continued to hold special deposits at the Central Bank.
As at 30 September, 2015, there were four one-year deposits as follows:- • • • • A deposit of $2.0 billion which matures on 30 October 2015; A deposit of $1.5 billion which matures on 29 December 2015; A special fixed deposit of $1.5 million which matures on 14 March 2016; A special fixed deposit of $1 billion which matures on 2 May 2016.

Interest paid to commercial banks on these fixed deposits during the fiscal year amounted to $13.2 million.

14.
Accounts payable Accounts payable - Foreign Bilateral accounts Pending Trades - Investments Purchased Other Payables Accounts payable - Local Trade payables and accrued charges Interest payable Unclaimed monies Government special accounts Blocked accounts Promissory Notes due to First Citizens Bank Ltd. (Note 24) Other payables Sep-15 $’000 Sep-14 $’000 2,728 3,884,106 7,591 25 6,713,673 16,068 3,894,425 6,729,766 Sep-15 $’000 Sep-14 $’000 68,119 15,847 15,847 141,801 38,417,025 1,647,132 22,360 59,941 26,611 13,993 145,152 26,054,652 1,873,867 31,912 40,328,131 28,206,128 61 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 15.
Provisions The Bank has adopted a prudent approach for provisioning in order to maintain adequate capacity to fulfil its functions.

This accounting treatment reflects the limitations on the creation of reserves set out in Section 35 of the Central Bank Act.
The Act specifies the terms and conditions governing General and Special Reserve funds and the creation of provisions for bad and doubtful debts, depreciation in assets, contributions to staff pension benefits and other contingencies, before payment of the net surplus for the financial year to the GORTT.

This is a departure from the definition outlined in IAS 37 Provisions, Contingent Liabilities and Contingent Assets.
The provisions shown on the Statement of Financial Position comprise: Provisions Gold reserve Foreign currency exchange rate reserves Pension reserve Revaluation reserve on investments 16.
Income from foreign currency assets Investment Income Interest on United States Dollar balances & securities Interest on Sterling balances & securities Interest on other foreign balances & securities Dividends from Bladex Investment expenses Sep-15 $’000 Sep-14 $’000 238,673 3,808,005 179,540 (114,342) 4,111,876 276,189 4,155,413 276,249 (47,347) 4,660,504 Sep-15 $’000 Sep-14 $’000 433,947 1,457 1,031 1,534 437,969 324,540 1,373 2,222 1,385 329,520 (24,871) (25,750) Loss from currency translations (121,090) (33,088) Net loss realised on disposal and amoritisation of investment Gains realised on disposal of investments Losses realised on disposal of investments 132,671 (216,932) (84,261) 17,239 (269,249) (252,010) Total Income from foreign assets 207,747 18,672 62 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 17.
Income from local currency assets Interest Income Loans Other investments Other Income General earnings Income from International Monetary Fund Dividends Fees charged to financial institutions Profit on sale of assets Sep-15 $’000 Sep-14 $’000 841,648 49,073 890,721 501,279 9,676 510,955 142 390 - 55,938 691 1,604 1,010 11,532 48,235 143 Heritage and Stabilisation Fund management fees 10,894 10,448 Profit on sale of investments in related entities Other 18.
Other Operating expenses Other operating expenses include: 50th Anniversary expenses Advertising and public relations CL Financial expenses (Note 24) Computer expenses Conferences and Meetings Contribution to other Organizations Electricity Insurance Library Expenses Loss on disposal of assets Loss on sale of investment in related parties Maintenance cost Printing and stationery Professional fees Rent Telephone Other Expenses - 233,600 1,248 69,303 1,299 307,871 Sep-15 $’000 Sep-14 $’000 3,265 5,207 6,334 16,466 6,542 2,346 4,216 2,401 2,860 69 - 27,699 2,813 8,115 3,700 5,527 3,732 101,292 9,280 4,683 981 13,301 4,582 2,673 4,158 2,614 2,915 17 7,600 29,253 3,282 6,654 3,475 5,038 287 100,793 63 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 19.
Taxation Net surplus before taxation Corporation tax @ 25% Income/expenses not subject to tax Business levy Tax charge Sep-15 $’000 Sep-14 $’000 699,732 174,933 (174,933) - - 329,888 82,472 (82,472) - - 20.

Capital Commitments There was a $2.5 million in outstanding commitments for capital expenditure as at 30 September 2015 (30 September 2014 -$3.3 million).

21.

Leasehold obligations – operating leases a.


Operating leases where the Bank is the lessor The Bank currently has two lease arrangements for offices located in the Bank’s building.

The tenants are charged a monthly rental and service fees based on the square footage occupied.

b.

Operating leases where the Bank is the lessee The Bank also leases equipment and premises under operating lease arrangements.

The leases have varying terms, escalation clauses and renewal rights.

22.
22.

Capital Authorised capital Paid-up capital 64 Sep-15 $’000 Sep-14 $’000 800,000 800,000 800,000 800,000 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 23.

Related Party Transactions a.


Government of the Republic of Trinidad and Tobago The Bank as part of its regular operations enters into various transactions with the GORTT, state owned entities, state agencies and local government bodies.

It shouldbe noted that all transactions are done at arms’ length and in accordance with normal business practices.
Transactions and balances with the Bank and these entities are listed below: Sep-15 $’000 Sep-14 $’000 Interest income from local currency assets 882,860 501,943 Interest expense 53,786 50,630 Assets Local currency investment securities Liabilities Demand liabilities - foreign Demand liabilities - local Accounts payable 4,325,008 25,165 429,612 222,234 (4,276,754) (1,316,111) 38,452,799 26,093,442 65 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) b.
Related Enterprises These Financial Statements include the following transactions with related enterprises (see Note 6) during the year: Income Dividend Income Rental Income Other Income Expenditure Salaries and related expenditure Ending period balances Investments in related enterprises Receivables from related enterprises Payables to related enterprises c. Key Management Compensation Sep-15 $’000 Sep-14 $’000 - 944 148 1,092 4,572 944 148 5,664 1,716 1,573 4,422 3,516 57,060 4,422 486 2,388 Key management personnel are those persons having authority and responsibility for planning, directing, and controlling the key activities of the Bank, directly or indirectly, including all executives, senior, middle and junior managers.
Short-term employee benefits Directors’ Fees 24.

CL Financial Group Matter Sep-15 $’000 Sep-14 $’000 65,793 828 61,787 997 During January 2009, representatives of CL Financial Limited (CLF) met with the Bank and the Ministry of Finance requesting urgent liquidity support for CLICO Investment Bank Limited (CIB), CLICO (Trinidad) Limited (CLICO) and British American Insurance Co (Trinidad) Limited (BAT).
On 66 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 30 January 2009, in an effort to protect the interest of depositors and policyholders, the Minister of Finance entered into a Memorandum of Understanding with CLF for the provision of liquidity support for CIB, CLICO and BAT under certain conditions.
On 31 January 2009 the Bank assumed control of CIB, under Section 44D of the Central Bank Act (the Act) and consequent to an amendment to the Act, it also assumed control of CLICO and BAT on 13 February 2009.
As a result of these actions the Bank currently has in its Financial Statements the following assets and liabilities: Assets Amounts recoverable from CLF/GORTT Sep-15 $’000 Sep-14 $’000 2,142,070 2,123,625 Liabilities Promissory Notes due to First Citizens Bank Limited 1,647,132 1,873,867 During the current year, with the approval of the Minister of Finance and Economy, the Bank began to repay the US$ Promissory Note due to First Citizens.
Arrangements have been made to repay both the US$ Promissory Note and the TT$ Promissory Note by April 1, 2016.

The Bank has been named as a party to the ongoing Commission of Enquiry into CLF and its related financial institutions.

The Bank has incurred significant legal and professional fees associated with this matter.

In addition, the Bank together with CLICO has initiated civil proceedings against former executives of CLICO.
In the context of delays with criminal action, this suit was filed with the dual objective of bringing those responsible to justice and recovering monies spent by the GORTT.

The outcome of this matter cannot reliably be estimated at this time.

Legal, consultancy and other costs incurred in relation to all CLF matters have been disclosed in Note 18.

In October 2014, the Bank working with the GORTT facilitated the sale of certain assets held by the CLF Group.
As a result of this transaction, the Bank received funds of approximately $7.5 billion and issued liabilities of an equivalent amount.

In April 2015, the Bank facilitated a transfer of $4.2 billion to Government; this resulted in an investment in a Treasury Bill of an equivalent amount in the Bank’s books (see Note 5).

25.

Contingent Liabilities The Bank is currently involved in claims and counterclaims arising from the conduct of its business.
Based on the facts currently available to the Bank, it can be concluded that the outcome of these matters would not have a material adverse effect on the position of the Bank.

67 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 26.
Statement of Financial Position-Current/Non-Current distinction ASSETS Foreign currency assets Foreign currency cash and cash equivalents Foreign currency investment securities Foreign receivables Subscriptions to international financial institutions International Monetary Fund - Holdings of Special Drawing Rights Local currency assets Local currency cash and cash equivalents Local currency investment securities Retirement benefit asset Accounts receivable and prepaid expenses Other assets Property, plant and equipment TOTAL ASSETS LIABILITIES Foreign currency liabilities Demand liabilities - foreign International Monetary Fund - Allocation of Special Drawing Rights Accounts Payable Local currency liabilities Demand liabilities - local Accounts payable Provision for transfer of surplus to government Provisions CAPITAL AND RESERVES Capital General Reserve Retained Earnings Sep-15 Current Non-Current $’000 $’000 Total $’000 36,998,052 13,695,461 - 12,679,269 36,998,052 26,374,730 3,759,555 - - 54,453,068 - 3,837,933 2,461,370 18,978,572 3,759,555 3,837,933 2,461,370 73,431,640 1,709,615 4,393,188 - 60,320 108,459 - 6,271,582 - 96,460 179,540 2,115,549 119,520 217,328 2,728,397 1,709,615 4,489,648 179,540 2,175,869 227,979 217,328 8,999,979 60,724,650 21,706,969 82,431,619 426,753 - 3,894,425 4,321,178 6,572 2,866,201 - 2,872,773 433,325 2,866,201 3,894,425 7,193,951 28,360,334 131,750 809,011 - 29,301,095 27,145 40,196,381 - 4,111,876 44,335,402 28,387,479 40,328,131 809,011 4,111,876 73,636,497 - - - - 800,000
 800,000 1,171 1,601,171 800,000 800,000 1,171 1,601,171 TOTAL LIABILITIES, CAPITAL AND RESERVES 33,622,273 48,809,346 82,431,619 68 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 26.
Statement of Financial Position-Current/Non-Current distinction cont’d ASSETS Foreign currency assets Foreign currency cash and cash equivalents Foreign currency investment securities Foreign receivables Subscriptions to international financial institutions International Monetary Fund - Holdings of Special Drawing Rights Local currency assets Local currency cash and cash equivalents Local currency investment securities Retirement benefit asset Accounts receivable and prepaid expenses Other assets Property, plant and equipment TOTAL ASSETS LIABILITIES Foreign currency liabilities Demand liabilities - foreign International Monetary Fund - Allocation of Special Drawing Rights Accounts Payable Local currency liabilities Demand liabilities - local Accounts payable Provision for transfer of surplus to government Provisions CAPITAL AND RESERVES Capital General Reserve Retained Earnings Sep-14 Current Non-Current $’000 $’000 Total $’000 33,916,422 14,345,437 5,999,998 - - 54,261,857 - 33,916,422 14,400,713 - 3,400,194 2,656,812 20,457,719 28,746,150 5,999,998 3,400,194 2,656,812 74,719,576 1,791,192 6,731 - 39,903 1,543 - 1,839,369 - 181,990 276,249 2,169,277 260,336 220,171 3,108,023 1,791,192 188,721 276,249 2,209,180 261,879 220,171 4,947,392 56,101,226 23,565,742 79,666,968 227,630 - 6,729,766 6,957,396 - 3,093,995 - 3,093,995 227,630 3,093,995 6,729,766 10,051,391 34,861,131 1,986,155 177,364 - 37,024,650 - 26,219,973 - 4,660,504 30,880,477 34,861,131 28,206,128 177,364 4,660,504 67,905,127 - - - - 800,000 766,279
 144,171 1,710,450 800,000 766,279 144,171 1,710,450 TOTAL LIABILITIES, CAPITAL AND RESERVES 43,982,046 35,684,922 79,666,968 69 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 27.
Parent The Financial Statements of the Central Bank of Trinidad and Tobago are presented below: Statement of Financial Position As at 30 September 2015 ASSETS Foreign currency assets Foreign currency cash and cash equivalents Foreign currency investment securities Foreign receivables Subscriptions to international financial institutions International Monetary Fund - Holdings of Special Drawing Rights Local currency assets Local currency cash and cash equivalents Local currency investment securities Retirement benefit asset Accounts receivable and prepaid expenses Other assets Property, plant and equipment Sep-15 $’000 Sep-14 $’000 36,998,052 26,374,730 3,759,555 3,837,933 2,461,370 73,431,640 33,916,422 28,746,150 5,999,998 3,400,194 2,656,812 74,719,576 1,709,615 4,489,648 179,540 2,176,118 227,979 217,328 9,000,228 1,791,192 188,721 276,249 2,209,429 261,879 220,171 4,947,641 TOTAL ASSETS 82,431,868 79,667,217 70 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 27.
Parent cont’d Statement of Financial Position As at 30 September 2015 LIABILITIES Foreign currency liabilities Demand liabilities - foreign International Monetary Fund - Allocation of Special Drawing Rights Accounts Payable Local currency liabilities Demand liabilities - local Accounts payable Provision for transfer of surplus to government Provisions CAPITAL AND RESERVES Capital General Reserve Sep-15 $’000 Sep-14 $’000 433,325 2,866,201 3,894,425 7,193,951 28,387,479 40,329,551 809,011 4,111,876 73,637,917 227,630 3,093,995 6,729,766 10,051,391 34,861,131 28,350,548 177,364 4,660,504 68,049,547 800,000 800,000 1,600,000 800,000 766,279 1,566,279 TOTAL LIABILITIES, CAPITAL AND RESERVES 82,431,868 79,667,217 71 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 27.
Parent cont’d Statement of Comprehensive Income For the year ended 30 September 2015 Income from foreign currency assets Investment income Investment expense Loss from currency translations Net (loss)/gains realised on disposal and amortisation of investments Income from local currency assets Interest income Rental income Other income Decrease in provisions Total income Operating expenses Printing of notes and minting of coins Salaries and related expenses Interest paid Directors’ fees Depreciation Other operating expenses Increase in provisions Total operating expenses Net surplus for the period Sep-15 $’000 Sep-14 $’000 437,969 (24,871) 413,098 329,520 (25,750) 303,770 (121,090) (33,088) (84,261) 207,747 (252,010) 18,672 890,721 2,971 212,303 1,105,995 510,955 3,053 174,911 688,919 159,251 - 1,472,993 707,591 81,157 329,050 80,007 826 35,317 103,904 - 630,261 89,933 136,956 81,395 992 33,135 100,650 67,459 510,520 842,732 197,071 Total comprehensive income for the period 842,732 197,071 72 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 27.
Parent cont’d Statement of Changes in Equity For the year ended 30 September 2015 Issued and Fully Paid Up Capital $’000 General Reserves Retained Earnings Total $’000 $’000 $’000 Balance as at 1 October 2013 800,000 746,572 - 1,546,572 Net surplus for the period Transfer of surplus to Consolidated Fund Transfer to General Reserve - - - - 197,071 197,071 - (177,364) (177,364) 19,707 (19,707) - Balance as at 30th September 2014 800,000 766,279 - 1,566,279 Balance as at 1 October 2014 800,000 766,279 - 1,566,279 Net surplus for the period Transfer of surplus to Consolidated Fund Transfer to General Reserve - - - - 842,732 842,732 - (809,011) (809,011) 33,721 (33,721) - Balance as at 30 September 2015 800,000 800,000 - 1,600,000 73 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 CENTRAL BANK OF TRINIDAD AND TOBAGO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 (Expressed in Trinidad & Tobago Dollars) 27.
Parent cont’d Statement of Cash Flows For the year ended 30 September 2015 Cash flows from operating activities Net surplus for the year before taxation Adjustments for: Depreciation Net gain on disposal of fixed assets Interest income Interest expense Dividend income Provisions Revaluation of Artwork Cash outflow before changes in operating assets and liabilities Changes in operating assets and liabilities (Increase)/Decrease in accounts receivable & prepaid expenses (Increase)/Decrease in other assets (Increase)/Decrease in pension asset Increase in accounts payable and other liabilities Net cash flow from operations Cash flows from investing activities Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Net purchase of investments Net repayment of loans and advances Interest received Dividends received Interest paid Net (increase) in International Monetary Fund Holding of Special Drawing Drawing Rights and Allocation account Payment to Consolidated Fund Net cash flow used in investing activities Cash flows from financing activities Lease payment Net cash flow from financing activities Net increase in cash and cash equivalents Foreign currency differences in monetary assets & liabilities Cash and cash equivalents, beginning of period Cash and cash equivalents, end of period 74 Sep-15 Sep-14 $’000 $’000 842,732 197,071 35,317 33,135 (622) (126) (1,327,156) (839,090) 80,007 81,395 (144,534) (159,251) (5,957) 67,459 - (1,105) (673,507) (467,218) 2,202,018 (1,265,647)
 21,987 (27,443) 96,709 (80,973) 2,886,469 4,304,826 4,533,676 2,463,545 (32,700) (43,476) 848 869 (3,157,158) (1,372,037) 95,143 71,402 1,391,435 810,653 144,534 5,957 (90,771) (95,758) (32,352) (3,747) (177,364) (392,550) (1,858,385) (1,018,687) 11,913 11,680 11,913 11,680 2,687,204 1,456,538 312,849 (400,762) 35,707,614 34,651,838 38,707,667 35,707,614 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 APPENDICES 2014-2015 75 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 TABLE A.1 CURRENCY IN
 CIRCULATION 2010 - 2015 (Dollars Thousand) End of Month Notes (Old TT) Notes (Republic) Total Notes in Circulation Coins Total Currency in Circulation Sep-10 19,044 4,543,137 4,562,181 166,862 4,729,043 Sep-11 19,043 4,998,895 5,017,938 175,127 5,193,065 Sep-12 19,044 5,622,561 5,641,605 184,517 5,826,122 Sep-13 19,044 6,347,514 6,366,558 195,715 6,562,273 Sep-14 19,044 7,184,466 7,203,510 206,619 7,410,129 Oct-14 19,044 7,262,105 7,281,149 207,624 7,488,773 Nov-14 19,044 7,374,676 7,393,720 208,826 7,602,546 Dec-14 19,044 8,140,852 8,159,896 210,090 8,369,986 Jan-15 19,044 7,471,811 7,490,855 210,435 7,701,290 Feb-15 19,044 7,615,036 7,634,080 211,112 7,845,192 Mar-15 19,044 7,892,947 7,911,991 212,156 8,124,147 Apr-15 19,044 7,802,366 7,821,410 213,001 8,034,411 May-15 19,044 7,868,336 7,887,380 213,985 8,101,365 Jun-15 19,044 7,913,658 7,932,702 215,158 8,147,860 Jul-15 19,044 7,961,375 7,980,419 216,181 8,196,600 Aug-15 19,044 8,087,983 8,107,027 217,015 8,324,042 Sep-15 19,044 8,258,336 8,277,380 218,238 8,495,618 Source: Central Bank of Trinidad and Tobago 77 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 ’ o
& & t n e m n r e v o G k n a B - n o N , 0 6 0 1 6 9 3 7 , , 4 8 1 7 8 7 7 , , 3 0 5 6 8 1 2 7 , , 5 2 3 0 8 9 6 , , 8 3 3 9 0 4 7 7 , , 2 1 6 2 1 8 6 , , 8 1 2 1 7 3 7 7 , , 0 6 9 9 7 7 7 , 2 6 1 , 1 1 3 3 4 4 , 1 1 3 7 1 9 , 1 1 3 , 1 1 8 6 1 3 , 5 3 7 5 7 6 2 , , 9 8 0 4 1 7 2 , , 9 8 0 4 1 7 2 , , 9 8 0 4 1 7 2 , 1 8 1 , 6 5 5
 , 7 7 9 2 7 , 1 9 9 , 7 7 5 1 , 8 2 3 , 4 8 4 4 5 9 0 8 , , 9 9 8 1 3 6 9 , 3 7 4 , 1 1 3 , 0 3 2 4 1 7 2 , , 0 3 2 4 1 7 2 , 0 8 7 , 7 3 3 , 9 7 0 0 3 , 6 3 1 , 8 6 6 6 , 4 0 3 , 2 3 8 9 4 7 2 , , 9 7 4 4 9 3 8 7 , , 4 2 7 2 4 8 8 , , 0 7 6 6 8 6 8 7 , , 1 5 2 7 4 2 8 , 7 6 4 5 9 1 , 7 1 0 , 0 5 7 , 2 2 1 6 6 9 1 , 7 1 0 , 0 5 7 , 2 9 9 5 , 6 6 3 , 7 7 3 2 2 , 8 8 4 , 8 3 2 6 , 7 9 1 , 7 1 0 0 5 7 2 , , 4 0 8 5 7 8 5 7 , , 2 9 5 0 1 9 8 , 4 8 0 8 9 1 , 2 1 8 , 6 5 6 , 2 , 7 1 2 7 6 6 9 7 7 1 9 , , 8 5 7 , 0 1 1 2 7 , 8 8 1 3 5 6 , 8 9 8 , 3 8 9 4 3 , 9 3 9 , 8 7 3 4 , 0 9 1 1 4 6 , 1 0 9 , 2 8 3 1 1 , 1 8 8 , 1 1 8 9 9 , 5 9 1 , 2 1 8 6 5 6 2 , , 2 1 8 6 5 6 2 , , 3 8 8 6 5 6 2 , , 5 8 0 9 7 4 3 8 , , 6 8 5 4 1 6 7 , 6 3 7 1 9 1 , 3 8 8 , 6 5 6 , 2 1 7 7 , 0 9 8 , 0 8 6 8 4 , 7 6 5 , 6 8 7 0 , 2 9 1 , 3 8 8 6 5 6 2 , , 2 8 8 9 0 4 9 7 , , 9 0 1 6 9 9 6 , 2 7 4 0 3 2 , 0 5 9 , 6 5 6 , 2 3 9 5 , 2 9 2 , 5 8 7 9 9 , 7 1 9 , 7 6 0 4 , 8 0 3 , 6 8 8 6 3 , 1 7 8 , 8 7 3 2 , 1 2 1 , 3 8 3 6 8 , 0 7 8 , 6 , 2 6 0 1 1 9 2 8 , 1 6 4 , 8 8 9 , 6 0 3 3 , 4 3 5 , 4 8 6 8 4 , 5 7 4 , 9 4 9 6 , 4 9 6 , 0 8 8 6 1 , 6 2 0 , 6 8 6 8 , 1 3 4 , 2 8 5 3 1 , 0 7 2 , 8 , 8 9 7 1 5 4 4 , , 2 1 4 2 1 5 4 , , 7 2 7 7 2 6 4 , 3 2 5 , 7 9 3 , 2 5 8 2 , 1 6 4 , 2 3 3 3 , 1 6 4 , 2 , 0 3 5 7 6 5 4 , , 5 6 7 4 1 5 4 , , 4 1 2 6 2 5 4 , , 8 4 6 9 8 4 4 , 3 3 3 , 1 6 4 , 2 8 8 6 1 5 8 , 3 3 3 , 1 6 4 , 2 0 7 3 , 1 6 4 , 2 0 7 3 , 1 6 4 , 2 4 6 4 4 4 8 , 3 8 4 2 4 8 , 8 2 6 2 4 8 , 9 4 7 , 2 6
 1 5 5 1 , 3 6 1 5 5 6 , 4 6 1 3 6 7 , 1 6 1 5 5 9 , 1 6 1 5 7 9 , 2 6 1 8 6 3 , 2 6 1 6 8 2 3 6 1 , 4 6 9 5 6 1 , 6 3 8 , 5 6 1 1 3 1 8 6 1 , 5 3 8 , 6 6 1 1 9 9 , 3 5 8 5 5 6 , 2 5 8 1 5 5 1 5 8 , 2 7 5 , 6 4 8 6 6 7 8 4 8 , 2 4 9 2 5 8 , 7 1 6 2 5 8 , 3 3 9 7 4 8 , , 7 5 2 , 3 4 6 2 , 9 7 9 , 6 2 5 1 9 , 7 8 7 , 2 3 0
 6 0 , 1 6 9 , 3 7 2 7 5 , 6 4 5 , 1 0 7 7 , 1 4 2 , 8 3 5 6 6 , 6 1 1 , 3 ) 8 5 9 , 6 5 6 , 2 ( 5 5 0 4 4 3 , 5 0 6 , 3 0 3 , 3 0 3 2 , 4 0 3 , 7 2 6 5 6 , 9 0 4 , 1 3 3 0 5 , 6 8 1 , 2 7 2 7 5 , 6 4 5 , 1 4 3 6 , 3 3 8 , 6 3 3 1 2 , 1 6 1 , 3 ) 6 6 0 , 5 7 0 , 3 ( 2 2 2 9 4 3 , 5 0 6 , 3 0 3 , 3 6 3 0 , 8 7 3 , 8 2 4 2 4 , 4 2 7 , 5 3 8 3 3 , 9 0 4 , 7 7 2 7 5 , 6 4 5 , 1 6 4 6 , 2 1 6 , 7 3 3 1 2 , 1 6 1 , 3 5 0 6 , 3 0 3 , 3 0 2 8 , 7 9 2 , 8 2 0 7 1 , 7 9 7 , 4 3 8 1 2 , 1 7 3 , 7 7 2 7 5 , 6 4 5 , 1 3 5 6 , 9 5 7 , 7 3 3 1 2 , 1 6 1 , 3 5 0 6 , 3 0 3 , 3 5 7 3 , 3 5 6 , 8 2 0 3 1 , 3 0 4 , 4 3 1 8 1 , 6 5 5 , 7 7 2 7 5 , 6 4 5 , 1 0 4 6 , 1 8 2 , 8 3 3 1 2 , 1 6 1 , 3 5 0 6 , 3 0 3 , 3 1 9 2 , 0 7 0 , 8 2 1 1 0 , 0 6 7 , 6 3 4 8 4 , 4 5 9 , 0 8 2 7 5 , 6 4 5 , 1 0 5 3 , 5 8 5 , 0 4 3 1 2 , 1 6 1 , 3 6 3 2 , 1 2 2 , 1 1 7 8 , 4 0 8 , 1 1 4 2 , 7 3 8 9 4 3 , 3 2 9 3 6 9 , 6 4 3 , 3 7 4 4 , 6 1 0 , 8 2 4 0 2 , 1 2 6 , 6 3 0 8 7 , 7 3 3 , 9 7 2 7 5 , 6 4 5 , 1 8 8 7 , 9 5 7 , 9 3 2 0 7 , 2 0 2 , 3 ) 7 6 8 , 0 4 4 ( 3 4 2 4 4 3 , 5 9 0 7 4 3 , 6 5 0 7 4 3 , 0 0 2 3 4 3 , 7 3 8 6 4 3 , , 6 9 1 4 1 7 6 2 , , 0 6 7 4 5 6 6 , , 7 8 5 6 4 5 6 2 , , 1 4 3 4 2 8 6 , , 1 5 7 4 9 0 6 2 , , 7 7 6 8 2 4 7 , , 4 6 5 8 5 9 5 2 , , 0 5 2 3 9 7 6 , , 7 2 7 6 3 2 6 2 , , 2 3 7 5 4 1 7 , , 5 4 9 6 5 3 7 2 , , 5 5 8 7 3 0 7 , , 1 6 4 8 2 8 7 2 , , 7 8 2 4 9 0 7 , , 3 6 9 6 4 3 3 , 1 4 7 , 6 3 2 , 7 2 1 8 2 , 9 5 8 , 5 3 9 7 4 , 4 9 3 , 8 7 2 7 5 , 6 4 5 , 1 2 7 0 , 6 9 6 , 9 3 2
 0 7 , 2 0 2 , 3 ) 2 8 7 , 0 2 6 , 1 ( 2 5 2 4 5 3 , , 6 1 0 2 1 1 8 2 , , 7 4 6 3 0 1 7 , , 3 6 9 6 4 3 3 , 2 0 0 , 3 3 1 , 7 2 1 6 8 , 6 4 8 , 6 3 0 7 6 , 6 8 6 , 8 7 2 7 5 , 6 4 5 , 1 4 2 3 , 3 7 7 , 9 3 2 0 7 , 2 0 2 , 3 3 6 9 , 6 4 3 , 3 0 9 7 , 3 3 4 , 6 2 7 4 1 , 4 8 9 , 5 3 9 9 5 , 6 6 3 , 7 7 2 7 5 , 6 4 5 , 1 7 6 2 , 9 6 9 , 8 3 2 0 7 , 2 0 2 , 3 1 0 7 , 5 8 3 4 2 , 4 4 9 1 5 0 2 6 3 , 9 3 8 9 7 3 , , 8 5 1 9 6 5 6 2 , , 2 6 1 7 4 1 7 , , 9 3 0 1 0 0 5 2 , , 7 3 9 2 2 3 7 , , 9 5 3 3 3 2 3 , 0 5 6
 , 2 4 1 , 6 2 6 7 1 , 6 6 5 , 4 3 4 0 8 , 5 7 8 , 5 7 2 7 5 , 6 4 5 , 1 2 2 3 , 4 6 6 , 8 3 5 9 9 , 3 9 0 , 3 ) 2 0 3 , 5 0 2 , 1 ( 3 4 4 3 9 3 , , 0 0 9 5 0 1 6 2 , , 4 7 8 6 7 2 7 , 9 5 3 , 3 3 2 , 3 0 5 1 , 6 4 7 , 8 2 3 2 4 , 6 1 9 , 3 3 7 1 2 , 7 6 6 , 9 7 9 7 2 , 6 6 5 , 1 9 2 2 , 5 9 1 , 0 4 5 9 9 , 3 9 0 , 3 3 3 9 , 9 3 8 2 7 3 3 9 3 , 9 5 3 , 3 3 2 , 3 5 7 4 , 4 7 9 , 8 2 0 3 2 , 0 5 0 , 9 3 3 5 6 , 8 9 8 , 3 8 9 7 2 , 6 6 5 , 1 5 8 3 , 1 7 1 , 7 4 5 9 9 , 3 9 0 , 3 ) 1 6 5 , 3 4 7 , 3 ( 8 2 2 5 8 3 , 9 5 3 , 3 3 2 , 3 2 1 5 , 6 0 3 , 4 2 1 2 1 , 5 7 7 , 9 3 1 4 6 , 1 0 9 , 2 8 9 7 2 , 6 6 5 , 1 6 0 5 , 9 3 6 , 6 4 5 9 9 , 3 9 0 , 3 ) 3 5 5 , 2 7 7 , 4 ( 7 3 6 1 9 3 , , 4 0 8 9 5 1 6 2 , , 5 0 6 8 1 4 7 , , 7 6 8 6 4 9 7 2 , , 0 6 4 8 7 4 7 , , 9 3 2 3 9 3 8 2 , , 8 3 5 9 8 5 7 , , 9 5 3 3 3 2 3 , 6 1 4 , 6 8 3 , 8 2 4 5 5 , 4 4 5 , 0 4 5 8 0 , 9 7 4 , 3 8 9 7 2 , 6 6 5 , 1 5 9 9 , 0 0 4 , 6 4 5 9 9 , 3 9 0 , 3 ) 9 0 0 , 2 6 1 , 3 ( 9 7 2 7 8 3 , , 1 6 9 1 3 8 6 2 , , 5 8 5 0 6 3 8 , 9 5 3 , 3 3 2 , 3 1 7 5 , 6 3 2 , 9 2 2 2 8 , 7 5 1 , 8 3 1 7 7 , 0 9 8 , 0 8 9 7 2 , 6 6 5 , 1 2 3 2 , 4 6 9 , 5 4 5 9 9 , 3 9 0 , 3 ) 0 1 5 , 1 6 5 , 3 ( 8 0 4 7 8 3 , , 5 8 7 0 5 7 5 2 , , 2 8 5 9 8 6 7 , , 9 5 3 3 3 2 3 , , 2 5 6 7 1 9 2 , , 5 0 3 5 9 9 2 , , 5 0 3 5 9 9 2 , , 5 0 3 5 9 9 2 , , 5 0 3 5 9 9 2 , , 5 0 3 5 9 9 2 , , 5 0 3 5 9 9 2 , 3 1 9 , 3 4 7 , 8 2 3 1 3 , 0 0 7 , 6 3 2 8 8 , 9 0 4 , 9 7 9 7 2 , 6 6 5 , 1 1 2 2 , 4 7 1 , 7 4 5 9 9 , 3 9 0 , 3 ) 9 8 9 ,
 1 5 8 , 4 ( 3 3 6 8 8 3 , 1 8 3 , 8 8 6 , 8 2 0 0 3 , 6 6 0 , 8 3 3 9 5 , 2 9 2 , 5 8 9 7 2 , 6 6 5 , 1 0 9 6 , 6 1 0 , 9 4 5 9 8 , 1 9 7 , 2 0 7 4 , 3 3 6 2 9 9 , 4 2 9 , 8 2 7 2 4 , 0 9 6 , 7 3 6 0 4 , 8 0 3 , 6 8 9 7 2 , 6 6 5 , 1 7 9 7 , 4 9 8 , 8 4 1 0 2 , 6 6 8 , 2 ) 4 9 3 , 6 5 3 ( 5 9 0 8 8 3 , 8 6 8 3 9 3 , 4 8 3 , 0 5 6 , 8 2 2 9 6 , 7 6 6 , 6 3 7 3 2 , 1 2 1 , 3 8 9 7 2 , 6 6 5 , 1 4 7 6 , 9 0 4 , 8 4 1 0 2 , 6 6 8 , 2 ) 1 8 0 , 4 1 5 , 2 ( 3 0 8 6 8 3 , 1 1 7 , 2 8 6 , 6 2 4 3 0 , 4 6 3 , 8 3 2
 6 0 , 1 1 9 , 2 8 9 7 2 , 6 6 5 , 1 2 2 9 , 1 5 8 , 8 4 1 0 2 , 6 6 8 , 2 ) 8 4 8 , 0 5 0 , 3 ( 8 5 6 4 8 3 , 4 7 9 , 3 0 5 , 6 2 3 0 0 , 9 3 7 , 7 3 0 3 3 , 4 3 5 , 4 8 9 7 2 , 6 6 5 , 1 7 6 3 , 7 2 9 , 9 4 1 0 2 , 6 6 8 , 2 ) 2 2 7 , 7 9 7 , 3 ( 9 0 1 7 7 3 , 8 3 9 , 8 7 2 , 6 2 6 1 2 , 4 6 5 , 7 3 4 9 6 , 4 9 6 , 0 8 9 7 2 , 6 6 5 , 1 2 7 6 , 6 9 9 , 7 4 1 0 2 , 6 6 8 , 2 ) 9 0 5 , 3 2 5 , 3 ( 2 9 0 3 8 3 , 0 3 7 , 4 7 3 , 6 2 2 5 0 , 8 9 9 , 6 3 8 6 8 , 1 3 4 , 2 8 0 0 0 , 0 0 6 , 1 2 6 2 , 0 2 6 , 9 4 1 0 2 , 6 6 8 , 2 ) 4 3 2 , 7 9 2 , 3 ( 9 8 5 4 9 3 , , 3 3 1 4 0 2 4 2 , , 0 1 6 4 3 8 7 , , 8 2 7 3 8 7 2 2 , , 6 3 4 2 1 1 8 , , 9 4 4 0 2 9 4 2 , , 6 0 2 3 2 0 8 , , 7 9 8 5 1 3 4 2 , , 4 6 4 0 9 0 8 , , 7 3 7 5 5 1 4 2 , , 3 1 1 7 3 1 8 , , 4 9 8 8 0 4 5 2 , , 2 0 2 6 8 1 8 , , 4 5 4 1 9 0 3 2 , , 5 0 5 4 1 3 8 , , 5 7 9 8 5 7 2 2 , , 5 7 0 9 8 4 8 , / / 78 , , r e u q e h c x E s e d u c n I l 1 o g a
u r T , : CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 TABLE A.3 COMMERCIAL BANKS: AVERAGE DEPOSIT LIABILITIES, REQUIRED CASH RESERVES AND ACTUAL CASH RESERVES for Period Ending September 2015 Reserve Period Ending 01-Oct-14 08-Oct-14 15-Oct-14 22-Oct-14 29-Oct-14 05-Nov-14 12-Nov-14 19-Nov-14 26-Nov-14 03-Dec-14 10-Dec-14 17-Dec-14 24-Dec-14 31-Dec-14 07-Jan-15 14-Jan-15
 21-Jan-15 28-Jan-15 04-Feb-15 11-Feb-15 18-Feb-15 25-Feb-15 04-Mar-15 11-Mar-15 18-Mar-15 25-Mar-15 01-Apr-15 08-Apr-15 15-Apr-15 22-Apr-15 29-Apr-15 06-May-15 13-May-15 20-May-15 27-May-15 03-Jun-15 10-Jun-15 17-Jun-15 24-Jun-15 01-Jul-15 08-Jul-15 15-Jul-15 22-Jul-15 29-Jul-15 05-Aug-15 12-Aug-15 19-Aug-15 26-Aug-15 02-Sep-15 09-Sep-15 16-Sep-15 23-Sep-15 30-Sep-15 Average Deposit Liabilities ($000) Required Cash Reserves ($000) Average Cash Reserves ($000) 13,184,581
16,287,536
16,560,636 16,586,651 16,411,362 16,287,536 16,642,798 16,414,704 16,526,997 16,457,934 16,143,969 16,610,871 16,574,558 16,502,557 16,305,466 16,323,739 16,696,596 17,362,114 17,643,377 16,507,085 14,990,775 16,148,781 16,603,751 16,933,353 17,315,545 15,183,878 79 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015 TABLE A.4 NON-BANK FINANCIAL INSTITUTIONS: AVERAGE DEPOSIT LIABILITIES, REQUIRED CASH RESERVES AND ACTUAL CASH RESERVES for Period Ending September 2015 Reserve Period Ending Average Deposit Liabilities ($000) Required Cash Reserves ($000) Average Cash Reserves ($000) 01-Oct-14 08-Oct-14 15-Oct-14 22-Oct-14 29-Oct-14 05-Nov-14 12-Nov-14 19-Nov-14 26-Nov-14 03-Dec-14 10-Dec-14 17-Dec-14 24-Dec-14 31-Dec-14 07-Jan-15 14-Jan-15 21-Jan-15 28-Jan-15 04-Feb-15 11-Feb-15 18-Feb-15 25-Feb-15 04-Mar-15 11-Mar-15 18-Mar-15 25-Mar-15 01-Apr-15 08-Apr-15 15-Apr-15 22-Apr-15 29-Apr-15 06-May-15 13-May-15 20-May-15 27-May-15 03-Jun-15 10-Jun-15 17-Jun-15 24-Jun-15 01-Jul-15 08-Jul-15 15-Jul-15 22-Jul-15 29-Jul-15 05-Aug-15 12-Aug-15 19-Aug-15 26-Aug-15 02-Sep-15 09-Sep-15 16-Sep-15 23-Sep-15 30-Sep- 2,026,144
181,503
CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2015