Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698930220884.pdf (Trinidad and Tobago)
CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 1 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 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 2 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 (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.
Laws of Trinidad and Tobago Insurance Act Chap.

84:01 With effect from the commencement of the Insurance (Amendment) Act, 2004 [on May 25, 2004], the Central Bank shall be charged with the administration of [the Insurance] Act.

Financial Institutions Act Chap.

79:09 5.


(1) The Central Bank shall be responsible for the general administration of this Act, the supervision of licensees and the oversight of payment systems, and shall have the powers and duties conferred on it by this Act and the Central Bank Act.

(2) The primary objective of the Central Bank, in respect of licensees shall be to maintain confidence in, and promote the soundness and stability of, the financial system in Trinidad and Tobago.
(3) Other objectives of the Central Bank, in respect of licensees are to— (a) promote the existence of efficient and fair banking and financial services markets; (b) supervise licensees to determine whether they are in sound financial condition; and (c) maintain an appropriate level of protection for depositors of licensees.
3 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 The Honourable Colm Imbert Minister of Finance Eric Williams Finance Building Independence Square PORT OF SPAIN Dear Minister Imbert, December 30, 2016 REF: CB-G-193/2016 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, 2016, together with a copy of the Annual Audited Statement of Accounts certified by the Auditors.
Yours sincerely, ALVIN HILAIRE Governor 4 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 Table of Contents 5 Governor’s Foreword .............................................................................................................................. 6 Leadership and Organisational Structure ............................................................................................... 9 Strategic Planning ............................................................................................................................... 188 Review of Activities ............................................................................................................................... 19 Backdrop ............................................................................................................................................... 20 International and Domestic Economic Developments ..................................................................... 20 Monetary Policy ................................................................................................................................ 21 Monetary Operations ........................................................................................................................... 23 Banking Operations ........................................................................................................................... 23 Domestic Market Operations
 ............................................................................................................ 29 Foreign Reserves Management ........................................................................................................ 29 Financial Stability and Surveillance ....................................................................................................... 31 Overview ........................................................................................................................................... 31 Key Initiatives .................................................................................................................................... 32 Payment System Oversight ............................................................................................................... 36 Legislative Reform ............................................................................................................................. 37 Streamlining Operations ....................................................................................................................... 39 Governance and the Control Environment ....................................................................................... 39 Human Resources ............................................................................................................................. 40 Economic and Statistical Services
 ..................................................................................................... 41 Information Technology .................................................................................................................... 43 Community Engagement and Outreach ............................................................................................... 44 Financial Services .............................................................................................................................. 45 Consumer Protection and Financial Literacy .................................................................................... 46 Memorial Lectures ............................................................................................................................ 47 De La Rue Currency Scholarship Programme ................................................................................... 48 Vacation Internships ......................................................................................................................... 49 Money Museum ................................................................................................................................ 50 Sports and Cultural Club ................................................................................................................... 51 Charitable Work, Health and Wellness
 ............................................................................................. 51 Financial Statements and Appendices ................................................. Error!
Bookmark not defined.53 5 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 Governor’s Foreword The global economic environment in 2016 was marked by significant developments that had important immediate as well as likely persistent implications for the economy of Trinidad and Tobago.
The most obvious issue was the continued weakness in international commodity prices, particularly for energy products, which adversely affected the balance of payments and fiscal position with spillovers to nonenergy activities.
Instability in financial markets, the trajectory of the Federal Reserve’s interest rates, geopolitical tensions, waves of cyberattacks, the result of the United Kingdom’s referendum on leaving the European Union, de-risking of correspondent banking relationships, and continued economic weakness in many CARICOM territories were among the varied external concerns of the Central Bank of Trinidad and Tobago.
On the domestic front, most indicators pointed to low or negative growth in most sectors, led off by declines in energy output related to maintenance work or the maturation of oil and gas fields, while restrained capital spending in the context of fiscal adjustment led to a slowdown in construction.
Significant initial buffers in the form of relatively low public debt, 6 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 substantial international reserves and a Heritage and Stabilisation Fund have helped to potentially smooth the overall macroeconomic adjustment arising from the major terms of trade shock.

Nonetheless, pressure was evident in the foreign exchange market and there was some depreciation of the domestic currency.
At the same time, monetary policy adopted a holding pattern for most of the financial year, maintaining the repo rate unchanged while using open market operations more aggressively, and headline inflation stayed in the low single digits.

The domestic financial system remained very stable.

Cognisant of the potential adverse impact of the economic situation on borrowers’ ability to service their loans, the Central Bank stepped up its monitoring of credit quality.
Our Financial Institutions Supervision Department continued to work alongside other agencies to address important gaps that still remain in the legislative framework, in particular on insurance, international tax data exchange and anti-money laundering/counter-terrorism financing.

Meanwhile, a lot of progress was made in coordinating with other regulators, especially in the Caribbean, to improve consolidated supervision of cross-border financial institutions.
Important advances were also made with respect to implementation of the resolution strategy for Colonial Life Insurance Company (Trinidad and Tobago) Ltd (CLICO) and British American Insurance Company (Trinidad) Limited.

Internally, the Bank made meaningful strides in bolstering the framework for strengthening governance and controls and generally streamlining operations.
In April, the number of Departments was consolidated from 22 to 15 and clustered around the themes of Monetary Policy, Internal Operations and Financial Stability.

A new Board Committee on Information Technology was established as a component of the enhanced system of checks and balances established to deal with the Bank’s growing reliance on cyber interactions, and the attendant vulnerabilities.
A new Strategic Plan was approved by the Board on September 30th and for the first time was published on the Bank’s website; the Plan outlines 23 specific projects that will guide operations over the next 5 years.
7 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 Looking forward, 2017 is expected to be a challenging year on the economic front and the Bank will need to further sharpen its surveillance and analysis, coordinating as far as possible with local and international agencies in advancing meaningful solutions.

Effective communication will be key, especially in transmitting what may be difficult messages, and the Bank will be intensifying its financial literacy campaign.
The Bank will also be utilising its tremendous human capital in continuously modernising and streamlining its activities to international standards.

I would like to take this opportunity to pay special tribute to our colleague, Mr. Carl Hiralal, whose tenure with the Bank ended in December 2015 after nine exemplary years of service as the Inspector of Financial Institutions.
Let me conclude by thanking the Board, Management and staff for their committed efforts over the past year in the fulfillment of our mandate in the service of the people of Trinidad and Tobago.
8 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 Leadership and Organisational Structure 9 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 10 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 11 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 12 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 13 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 14 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 15 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 16 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 17 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 Strategic Planning Over the course of the second half of the financial year, the Bank developed its Strategic Plan for FY 2016/2017 to 2020/2021 taking into account input from internal and external stakeholders.
The goal of the exercise is to set a strong base and blueprint for strengthening our institutional capacity to deliver on our mandate in an evolving financial landscape.

The Plan consists of 3 strategic themes—Monetary Policy, Financial Stability and Internal Operations—10 strategic objectives, and 23 projects which are phased over the 5-year implementation period.

The Bank’s Strategic Plan is available on the Bank’s website: www.central-bank.org.tt.
It is summarised in Figure 1 below: 18 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 19 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 Backdrop International and Domestic Economic Developments Over the last year, the local economy continued its on-going adjustment.

A significant decline in global energy prices in tandem with reduced production by local energy companies resulted in declines in export earnings, and fiscal revenue with effects on the rest of the economy.
The anticipated reversal in 2016 in downtime by major energy companies for maintenance did not materialise, and remains an important factor in falling oil exploration and production.

As a result of these challenges, economic activity weakened.

Data published by the Ministry of Energy and Energy Industries point to lower output of most energy commodities during the year when compared to the preceding period.
On the non-energy side, several indicators tracked by the Central Bank also demonstrated reduced activity in FY2015/16.

The Central Statistical Office has indicated that the labour market deteriorated in the second quarter of 2016, as the unemployment rate increased to 4.4 per cent, from 3.8 per cent in the previous quarter, with the manufacturing, construction and agriculture sectors being most affected.
According to data from the Ministry of Labour and Small Enterprise Development, reports of job losses have increased while notices of job vacancies have declined over the six-month period from March to September 2016.

Lower global energy prices and depressed hydrocarbon output led to lower energy export revenues weakening the trade balance in 2016.
The negative impact on international reserves was however offset to some extent by the receipt of the proceeds of a US$1 billion Central Government bond, so that net international reserves amounted to US$9.8 billion at the end of September 2016, equivalent to around 11 months of prospective imports of goods and non-factor services.

Meanwhile, the TT dollar depreciated by 4.5 percent between January and September 2016.
In the first nine months of 2016, inflation remained well contained, due to weak impulses from food inflation, as well as a somewhat sedate economic environment.

On a 12 month basis, headline inflation measured 3 per cent in September 2016 while core inflation was 2.3 20 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 per cent.

The low inflation outturn was achieved despite increases to fuel prices, the widening of the Value Added Tax (VAT) base in April 2016 and the currency depreciation.
Revised estimates from the Ministry of Finance for FY 2015/16 show that the Central Government accounts registered a deficit of TT$7.3 billion (5.0 per cent of GDP), compared with an initially budgeted deficit of TT$2.8 billion and a FY 2014/15 deficit outturn of TT$2.7 billion.

Government revenue remained considerably constrained due to the persistent slump in the international energy market coupled with lower domestic energy production.
Similarly, Central Government streamlined its expenditure in FY 2015/16 in light of falling energy revenues.

Monetary Policy In light of the subdued economic conditions, low and stable inflation and a halt in the US Fed’s monetary policy normalisation process, the Central Bank maintained the ‘Repo’ rate at 4.75 per cent throughout 2016.

Simultaneously, the Bank focussed on careful management of liquidity to ensure that liquidity levels were appropriate for financial sector conditions at all times.
Consequently, commercial banks’ excess reserves averaged TT$3.2 billion in September 2016, little changed from the average of TT$3.1 billion at the close of the previous financial year.

Fiscal activity during the year added TT$7.8 billion to financial system liquidity, notwithstanding a withdrawal of TT$1.162 billion as a result of a government bond issue in May 2016.
A further TT$4.5 billion was added to the financial system when special deposits held at the Central Bank by the commercial banks matured during the year.

Additionally, less aggressive open market operations (OMO) by the Bank released a further TT$1.0 billion1 into the system.

The sale of foreign exchange by the Central Bank to the authorised dealers had the effect of withdrawing a total of TT$13.0 billion from the system.
1 This figure was adjusted to reflect the actual effect on liquidity in the banking system by the maturity of an extraordinary Treasury Bill related to a CLICO transaction.

21 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 Treasury bill rates continued to increase during the first half of FY2015/16 in response to tighter liquidity conditions.
The yield on the three-month open market Treasury bill increased from 0.84 per cent at the beginning of October 2015 to 1.20 per cent by the end of March 2016.

Similarly, the one-year treasury yield increased from 2.35 per cent to 2.80 per cent over the same period.

The ten-year Treasury bond began the year at a yield of 3.35 per cent and rose to 4.21 per cent by the end of March 2016.
Thereafter, yields on short- term government securities were unchanged through to the end of September 2016 while the ten-year treasury yield continued to increase to 4.40 per cent.

The commercial banks’ prime lending rates remained stable throughout 2016.

The commercial banks’ weighted average lending rate reached 8.12 per cent in September 2016 up from 7.44 per cent in September 2015, whereas the weighted average deposit rate increased to 0.60 per cent from 0.55 per cent in the same period.
As a result, the spread between weighted average lending and deposit rates increased slightly between September 2015 and September 2016.

Although monetary policy remained accommodative, economic conditions have led to a gradual deceleration in private sector credit.

On a year-on-year basis to September 2016, growth in private sector credit slowed to 3.5 per cent from 6.7 per cent in October 2015.
The slowdown was largely the result of slower commercial bank lending, although credit extended by the non-bank financial institutions also fell into decline (-2.0 per cent) by September 2016.

Lending to businesses moved from a growth of 4.4 per cent in October 2015 to a decline of 1.9 per cent by September 2016 while consumer lending slowed gradually over the year from 9.5 per cent in October 2015 to 7.6 per cent in September 2016.
22 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 Monetary Operations Banking Operations Currency in Circulation In accordance with the Central Bank Act Chapter 79:02, the Bank has the sole right to issue Trinidad and Tobago banknotes and coins.

Currency in circulation as a percentage of GDP was 5.4 per cent in FY 2015/2016, compared to 5.1 per cent in the previous financial year.
The average growth rate of currency in circulation for FY 2015/2016 was 1.8 per cent as compared to 14 per cent in the previous financial year.

The traditional seasonal pattern of higher demand by commercial banks for currency during the holiday season of November and December was also evident during the year.

(See Chart I).
(See Chart I).

Chart I - Currency in Circulation 9.5 9.0 8.5 8.0 7.5 7.0 6.5 6.0 5.5 5.0 4.5 s n o i l l i B $ T T 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 The amount of new banknotes issued by the Bank was 33.5 per cent less than the previous year.
The major factors that contributed to this decrease were an overall increase in the number of banknotes reissued into circulation, continued increase of electronic payments, a decrease in request for cash over the counter at commercial banks and slowing economic activity.
The TT$100 denomination continued to represent the largest value of all banknotes in circulation, representing about 89 per cent (See Chart II) while the TT$1 denomination accounted for the largest volume at 42 per cent of total notes in circulation.
23 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 Chart II - Value of Notes in Circulation by Denomination as at September 30, 2016 1%1%1% 5% 3% 89% $1 $5 $10 $20 $50 $100 The Central Bank introduced its first $50 polymer note in December 2014 to commemorate the Central Bank’s 50th anniversary.

In November 2015, a new and upgraded version of the polymer $50 note containing a tactile feature for the visually impaired was issued into circulation.
As at September 2016, a total of 5.5 million pieces of $50 polymer notes (2014 and 2015) valued $275 million had been issued.

With respect to currency coins, the 1 cent remained the most widely circulated, representing approximately 49 per cent of the total volume of coins in circulation, followed by the 25 cents coin at 19 per cent of total volume.

(See Chart III).
(See Chart III).

Chart III - Volume of Coins in Circulation by Denomination as at September 30, 2016 0.3% 19% 49% 16% 15% 1¢ 5¢ 10¢ 25¢ 50¢ Note: Chart does not contain data for the $1 coin 24 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 During the financial year, the Central Bank initiated a project to: (i) to change the country’s existing alloy-based coins to metallic-based coins and (ii) to eliminate the issuance of the one-cent piece.
This is prompted by the rising cost of alloys used to mint the coins currently in circulation, as well as the significant effect of negative seigniorage in producing each coin.

In fulfilling the Bank’s decision, the services of the Royal Canadian Mint were engaged to produce the more cost-effective metallic-based coins.

These coins are expected to be placed into circulation in 2017.

The Central Bank will also cease issuing one cent pieces in 2017.

Clearing and Settlement Systems i.


Real Time Gross Settlement (RTGS) System The RTGS is an electronic payment system which facilitates the clearance and settlement of large value (TT$500,000 and over) and time sensitive transactions among the Central Bank and the commercial banks in real time.

This payment system is the most significant within the domestic economy in terms of value, settling a monthly average value of TT$47 billion.
A total of 61,050 transactions were settled on the system during FY 2015/2016 (See Chart IV).

Chart IV - RTGS Annual Volumes 62 60 58 s d n a s u o h T 56 54 52 50 48 46 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 ii.

Cheque Clearing 25 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 As at September 2016, though the volume of cheques cleared by the Central Bank increased by 5 per cent, there was a decrease in value of approximately 18.8 per cent when compared to the previous year.
This suggests that there was an overall increase in the number of smaller value cheques cleared by the Central Bank.

In real terms, the value of cheques drawn on the Central Bank stood at TT$52 billion in FY 2015/16 compared to TT$64 billion in FY 2014/2015 while the volume was 1.9 million compared with 1.7 million for the respective periods.

(See Chart V).

Chart V - Volume of Cheques Cleared by the Central Bank as at September 2016 n i ( d e r a e l c s e u q e h C f o .
o N ) s d n a s u o h T 1,850 1,800 1,750 1,700 1,650 1,600 1,550 1,500 1,763 1,854 2014/2015 2015/2016 Financial Institutions Reserve Accounts The required statutory cash reserve ratios for commercial banks and non-bank financial institutions remained unchanged at 17 per cent and 9 per cent of their prescribed liabilities respectively.

The value of the average deposit liabilities for the commercial banks increased marginally by 0.89 per cent while non-banks increased by 7.29 per cent.
In addition to the statutory cash reserves, 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.

Additionally, as part of the Bank’s monetary policy strategies to manage liquidity in the domestic system, some of the commercial banks’ fixed deposits at the Central Bank were paid out at maturity.
At the end of the year, the commercial banks held TT$1.5 billion in deposits down from TT$6 billion at the beginning of the period of review.

26 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 Four one-year special fixed deposits held by commercial banks matured during the period under review.

Interest, which is paid upon maturity only, totaled TT$23.5 million.

Regional Arrangements i.


Bank of Guyana Consolidated Debt The Bank of Guyana’s debt to Trinidad and Tobago is a consolidation of sums owed to the Central Bank and the Government of Trinidad & Tobago from:- 1.

The Caricom Oil Facility (1981-1982) 2.

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$6.72 million was received during FY 2015/2016.

This was distributed as follows based on the proportions of the original loan: Government of the Republic of Trinidad & Tobago (GORTT) - US$1.36M Central Bank of Trinidad and Tobago - US$5.36M The principal balance outstanding as at September 30, 2016 was US$22.3 million.

ii.
ii.

Banco Latinamericano De Exportaciones S.A. (BLADEX) The Central Bank holds a total of 160,626.50 Class A shares in BLADEX.

During the financial year, dividends totaling approximately US$247,000 were received.

iii.

Corporación Andina de Formento (CAF) As at September 30, 2016 the Central Bank held 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.
27 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 Government Bonds 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 GORTT bonds that were dematerialised in prior years.

The Government issued one bond, during the period under review, on May 16th 2016, of value TT$1,162M at a fixed rate of 4.5 percent.
During the financial year 2015/16, total principal repayments and interest payments to bondholders of Central Government (inclusive of NIPDEC) securities amounted to TT$289 million and TT$1.47 billion respectively.

This is compared to the previous year’s interest paid of TT$1.45 billion, an increase of 1.0 per cent.

For the same period under review, principal repayments and interest payments made to State Agency bondholders amounted to TT$52 million and TT$287.4 million respectively.
On November 30, 2015, payments in respect of the fourth tranche of GORTT CLICO zero coupon bonds were made to bondholders in the amount of TT$476.6 million compared to TT$476.8 million in the third tranche.

On September 3, 2016, payments in respect of the second tranche of the GORTT HCU zero coupon bonds were made to bondholders in the amount of TT$18.5 million compared to TT$17.7 million in the first tranche.
The 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 the financial year under review, payments of TT$45,500 were made compared to TT$9,500 in the previous year.
For the Tax Free bonds which matured in December 2005, total principal and interest repayments were TT$4,509 this fiscal year compared to TT$110,400 in the prior period.

28 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 Domestic Market Operations Foreign Exchange Market Conditions in the domestic foreign exchange market were relatively tight as inflows from foreign exchange earners declined in FY2015/16.
Purchases from the public by authorised dealers declined 11.5 per cent from the previous year, reflecting a 17.3 per cent drop in energy sector conversions.

As a result of the lower inflows, sales of foreign currency to the public declined 15.6 per cent compared to the previous year.

The Central Bank maintained its support to the domestic foreign exchange market, selling US$1,997 million to completely offset the net sales gap between purchases from and sales to the public.
The level of support provided by the Bank in FY2015/16 was US$328 million less than in the previous year.

Within the tighter market conditions, the TTD/USD exchange rate depreciated over the course of the financial year.

In September 2016, the exchange rate stood at TT$6.7421/US$1.00 compared with TT$6.3625/ US$1.00 at the beginning of the financial year.
Foreign Reserves Management Consistent with declining energy sector revenues, foreign currency reserves fell to US$9.3 billion in July 2016 from US$10.3 billion in September 2015.
The main inflows to the reserves portfolio came from the receipt of proceeds from the issuance of the Republic of Trinidad and Tobago US$1 billion 4.50 per cent notes (due August 4, 2026), the energy sector, which added US$735.3 million, (significantly down from US$2.0 billion in the previous financial year), and the Heritage and Stabilisation Fund from which US$375.1 million was transferred.
The major outflows included foreign currency sales to the domestic market totaling US$2.0 billion and Central Government payments of approximately US$0.9 billion.

The changing dynamics for the foreign currency reserves along with financial market uncertainty have resulted in the Central Bank revisiting the way the Reserve portfolio is managed.
Over the 2015/2016 financial year, the Bank employed strategies to ensure the preservation of the capital value of the portfolio, the availability of adequate liquidity to 29 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 meet obligations, and an acceptable rate of return.

The portfolio’s currency risk was reduced and the assets remained invested primarily in short-dated US Treasury securities and US Fixed deposits.
Over the period, the Reserve portfolio earned 0.64 per cent compared with a return of 0.35 per cent in the previous year, mainly on account of higher coupon and deposit rates.

30 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 Financial Stability and Surveillance Overview The financial sector of Trinidad and Tobago accounted for approximately 14.5 per cent of GDP in 2016.

Total assets2 of the financial sector amounted to over TT$300 billion.
There has been no major shift in the composition of assets and the commercial banks continued to account for the largest portion of total assets (approximately TT$136 billion) (See Chart VI) with four banks accounting for over 90 per cent of commercial banking assets.

Chart VI - Composition of Assets in the Financial Sector September 2016 The Central Bank as the primary regulator of the financial system, maintained close oversight of the banking, insurance and pensions sectors.
Further, despite not yet having the requisite legislation in place, the Central Bank continued close monitoring of the deemed systemically important financial institutions: the Trinidad and Tobago Unit Trust Corporation, National Insurance Board, Home Mortgage Bank and the Trinidad and Tobago 2 Includes CLICO and BAT but excludes Central Bank assets.
31 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 Financial indicators suggest that challenges within the domestic macroeconomic environment stemming from the misfortunes of the energy sector have not to date translated into any material decline in the key financial soundness indicators of the banking and insurance sectors.
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 shared with the public during a televised press conference on March 27, 2015, and published in subsequent press releases.

The Plan involved phased payments to CLICO’s policyholders and creditors from the monetisation of CLICO’s assets.
In July 2016, following consultation between the Central Bank and the Minister of Finance, special directions with respect to CLICO and BAT were issued to the Central Bank pursuant to section 44F(5) of the Act regarding a strategy to facilitate an earlier settlement of liabilities to unconnected “third party” Short-Term Investment Product (STIP) holders and mutual fund holders including the Government, as assignee of the rights of mutual fund holders and STIP holders.
Pursuant to these directions, on July 13 2016, Government received two further payments totalling TT$2.6 billion which represented settlement of its Statutory Fund liabilities, as assignee of rights of Statutory Fund policyholders who accepted Government’s 2011 bailout offer.

In addition, all non-assenting third party resident and non-resident STIP holders and holders of mutual fund contracts were invited to apply for full payment of their policies and payments to this group commenced on July 25, 2016.
Key Initiatives The Bank’s risk-based approach to supervision and regulation of regulated entities, the payments system as well as the oversight of the financial system as a whole seeks to foster the resilience of the financial sector while promoting good governance within regulated 32 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 entities.
In this regard, the Central Bank either continued or embarked on several initiatives aimed at strengthening the resilience of the financial system during the year.

Stress Testing Since 2005, the Bank has used a top down stress testing methodology to assess certain vulnerabilities and risks in the commercial banking sector.

Conservative banking practices, strong profitability and adequate capita buffers make for a resilient banking system.
The results of the tests support the view that the capital held by individual banks is adequate to withstand plausible stresses such as interest rate, foreign exchange, credit, property and liquidity shocks although there is evidence of vulnerability in some institutions due to certain asset concentrations.
The Bank has embarked on an initiative to refine the technical aspects of the stress testing methodology, update the stress parameters and scenarios and to include other financial institutions and financial products to ensure that the tests continue to be relevant, reliable and capture the plausible risks facing the financial sector.

Important aspects to be considered are contagion and second round effects and a focus on systemically important financial institutions.
The first phase of this initiative took place during the year under review and involved technical assistance (TA) to the Bank from the IMF’s Caribbean Regional Technical Assistance Centre (CARTAC).
The TA mission was geared toward: (i) (ii) building in-house capacity for ongoing scenario development and modelling; engendering collaboration with the Securities and Exchange commission in the development of stress tests for the securities sector; and (iii) assessing any potential for contagion posed by the securities sector.
The Central Bank also co-hosted a Financial Stability and Stress Testing Seminar with the Association of Banking Supervisors of the Americas (ASBA), the Caribbean Group of Banking Supervisors (CGBS) and the Financial Stability Institute (FSI).

33 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 Basel II/III Implementation Key milestones of the ongoing project to implement the International Basel II/III regulatory capital standard were met.
The expected timeline for completion of the first phase of the Basel II/III Implementation project is June 2018.

Anti-money laundering and combatting the financing of terrorism (AML/CFT) The Caribbean Financial Action Task Force (CFATF) published the 4th Round Mutual Evaluation Report (‘Report’) on its website on June 3, 2016.

The Report noted that Trinidad and Tobago was placed in enhanced follow up largely due to deficiencies in the effectiveness of its AML/CFT regime.
The Report contained several recommendations to further improve the country’s AML/CFT framework, including strengthening Money Laundering/Terrorist Financing investigative and prosecutorial processes and implementation of targeted financial sanctions for terrorist financing, particularly with respect to Foreign Terrorist Fighters.
As a consequence, the National Anti-Money Laundering Committee (NAMLC), which includes a Central Bank representative, met during the year to formulate action plans and finalise the National Risk Assessment, in order to address the gaps identified in the Report.

De-risking The Central Bank participated in a number of regional and international fora hosted by the World Bank, the IMF, the Financial Stability Board (FSB) and the Financial Action Task Force (FATF) on the topic of ‘de-risking’.
The objectives of those meetings were to discuss the impact of de-risking and identify pragmatic solutions to treat with the issue.

De-risking refers to financial institutions exiting relationships with and closing the accounts of clients considered as ‘high risk’.

Drivers of de-risking include the fear of exorbitant regulatory fines and reputational risk due to observed or perceived noncompliance with international standards.
Globally, there has been a growing trend of de-risking of money service businesses, non- profit organisations and correspondent banking relationships (CBRs).

As the latter facilitates regional banks’ access to the international payments and settlement system, the loss of 34 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 CBRs has been a source of concern for regional Central Banks.

Notwithstanding, Trinidad and Tobago has not been significantly impacted by the loss of CBRs in 2016.
Consolidated Supervision Framework The financial sector is also characterised by intra-regional relationships which heighten systemic risks and the likelihood of contagion as the failure of one institution can have effects across the region.

These intra-regional relationships call for supervisory cooperation by among the region’s central banks.
In this regard, the Bank continued its collaboration with its regional counterparts and worked with the Caribbean Group of Banking Supervisors (CGBS), to develop and roll out a Regional Consolidated Supervision Framework which was approved in May 2016.

The document prescribes a framework for conducting risk assessments for financial groups and details procedures and reporting requirements to facilitate supervisory collaboration and information sharing.
Regional Harmonisation of Asset Classification and Provisioning Standards The Central Bank co-chaired (along with the Cayman Islands Monetary Authority) a CGBS working group to progress policy proposals for the Regional Harmonisation of Asset Classification and Provisioning Standards.

The main objective of this project was to examine the differences in regulatory loan classification and provisioning standards in regional jurisdictions given the existence of cross-border banking groups.
Differences in loan classification and provisioning standards could impact the comparability of information when assessing different entities in a financial group both on a solo and consolidated basis.

The document therefore proposes minimum standards for inter alia, effective management of credit portfolios, portfolio reviews, classification of assets, treatment of past due and nonperforming credit facilities, provisioning, treatment of interest, income recognition, disclosure and reporting requirements.
The document is expected to be adopted at the next meeting of the CGBS scheduled for early 2017.

35 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 Payment System Oversight In keeping with its policy3 on the adoption of the Principles for Financial Market Infrastructure4, the Central Bank continued its baseline assessment of particular aspects of the National Payments System.
The National Payments System comprises the Real Time Gross Settlement System (RTGS) and three Significant Retail Payment Systems (SRPS); the Automated Clearing House (ACH), the Cheque clearing system and the automated teller machine (ATM)/point of sale (POS) systems for credit and debit cards.
Pursuant to Section 51 of the Financial Institutions Act, 2008 (FIA), which requires the Inspector of Financial Institutions to be notified of new products being introduced by licensees, several such proposals related to new payments products were reviewed.

These pertained to the use of new technologies including mobile phone based systems and the introduction of new payment card based products to effect payments.
Also reviewed, were applications by entities not licensed under the FIA for registration as a Payment Service Provider and Bill Payment Service Provider.

The Central Bank continued to serve as the Secretariat to the Payments System Council and chaired several meetings in 2016.

The PSC reviewed its objectives under its 5 year strategic plan which entailed the creation of a ‘Statement of Needs’, both long and short term, for the future development and enhancement of the National Payments System.
This required information to be obtained from the public and the private sectors on their payments needs and includes the requisite upgrade of the legislative and technological frameworks in keeping with international best practices to facilitate enhancements to the National Payments System In April 2016, the Central Bank co-hosted a Regional Workshop on Retail Payments Systems in Latin America and the Caribbean with the Bank for International Settlement and CEMLA.
It was attended by several Caribbean and Latin American central banks.
There were 3 http://www.central-bank.org.tt/content/payments-system 4 Issued jointly by the Committee on Payment and Settlement Systems of the Bank for International Settlements and the Technical Committee of the International Organisation of Securities Commission 36 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 presentations by the BIS, World Bank, Bundesbank and CEMLA on topics ranging from correspondent banking, de-risking, payments aspects of financial inclusions and a presentation by the Central Bank of Trinidad and Tobago on the Retail Payments System in Trinidad and Tobago.
The Bank also participated in the Global Payments Week held in Turin, Italy in September 2016.

Legislative Reform During fiscal year 2015-2016, the Insurance Bill was tabled in the House of Representatives.

The Ministry of Finance has listed other areas of legislative reform in respect of the regulatory framework for financial institutions, which are scheduled for debate in Parliament in 2017.
The Central Bank continues to work with the Ministry and other agencies towards finalisation of the Foreign Account Tax Compliance Act, 2010 (FATCA) and legislation in respect of Anti-Money Laundering.

(i) The Insurance Bill, 2016 - On July 1, 2016 the Insurance Bill 2016 was laid in the House of Representatives; the debate on this Act is expected to be completed in 2017.
(ii) Foreign Account Tax Compliance Act, 2010 (FATCA)) - On August 21, 2016 the Minister of Finance and the United States Ambassador to Trinidad and Tobago signed the Model 1 Intergovernmental Agreement (IGA) which paved the way for the implementation of the Foreign Account Tax Compliance Act (FATCA) between Trinidad and Tobago and the United States.

The next step involves the passing of legislation by the Trinidad and Tobago government.
The Central Bank continues to collaborate with the Ministry of Finance, the Office of the Attorney General and all other relevant stakeholders, including commercial banks, insurance companies and other financial institutions under its regulatory purview, to ensure readiness.
(iii) Money Remitters - The Central Bank collaborated with the Financial Intelligence Unit of Trinidad and Tobago (FIU) to commence work on the establishment of an appropriate regulatory framework for money remitters in Trinidad and 37 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 Tobago.
To launch this initiative, the FIU and the Central Bank conducted a joint meeting with the money remitters registered with the FIU in September 2016 to advise the sector of the Bank’s plans to develop appropriate legislation to govern their operations.

It should be noted that establishment of an adequate regulatory framework for money remitters will address one of the noted deficiencies in the CFATF’s Mutual Evaluation Report of Trinidad and Tobago.
38 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 Streamlining Operations Governance and the Control Environment The Bank modified its High-Level Organisational Structure with effect from April 1, 2016 following discussions and endorsement of the Board of Directors.

The guiding principles underpinning the new structure are greater simplicity, efficiency, accountability, leveraging of employees’ strengths and capabilities and operational risk minimisation.
As a result of the restructuring, several departments were merged, with a resultant reduction in the number of departments from 22 to 15.

The merger of the departments will benefit the Bank through fewer cost centres; more efficient HR administration; consolidated budgets and training programmes and greater opportunities for staff intra-department mobility and exposure.

The modified structure includes a Senior Manager dedicated solely to Financial Technology and Information Security.
This position is considered critical at this time given the potential IT risks that the Bank is facing and the significant expenditure associated with IT.

An IT Committee of the Board of Directors with oversight responsibility for IT has also been established.
The Bank, mindful of the critical role it plays in the monetary and financial stability of Trinidad and Tobago has established a Risk Management Policy to ensure a systematic and comprehensive approach to risk management as well as to entrench a culture that emphasises careful analysis and control of risk.
For each of the three broad classes of risks, Strategic, Financial and Operational, the Bank has established formal governance structures that facilitate regular assessment of risks and adoption of appropriate risk mitigants.

They are designed to promote responsiveness to change and opportunity, and facilitate continuous improvement.

At the level of the Board, in addition to the IT Committee mentioned above, an Audit Committee and a Human Resources Committee provide oversight.
The Bank’s Enterprise Risk Management Framework includes: 39 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 i.

A Control Framework consisting of supervisory oversight, segregation of duties, approvals, authorisations, verifications, reconciliations, due diligence checks and reviews; ii.

A series of related policies and procedures which govern employee behaviors and mandate specific practices in sensitive areas.
In addition, the Bank’s Framework is based on the ‘Three Lines of Defense’ model which details the roles of Management, Risk Management and Internal Audit in the identification, assessment, treatment, reporting and oversight of risk.

The Bank has also established management systems for Business Continuity and Health and Safety.
With regard to Business Continuity, a financial sector continuity assessment was completed which indicates that the business continuity programmes of the reporting institutions are well established and functional.

The Bank’s Security department has been able to achieve an effective, efficient and professional discharge of its duties using Access Control and monitoring technology to enhance physical security.
It has also collaborated with the security units of other central banks across the region providing advice and guidance.

Human Resources A new high level organisation structure was implemented effective April 1, 2016 following an assessment of the enterprise-wide risks across the institution; imbalance in the span of control at the senior management level and the large number of departments in the structure.
The new structure saw a reduction in the number of departments from 22 to 15; re-balancing of responsibilities at the senior management level; a senior manager dedicated solely to Information Technology and the areas under the Deputy Inspectors in the Financial Institutions Department now partitioned principally along the lines of the characteristics of licensees.

As at September 30, 2016 the Bank’s complement numbered 613, which represented 572 permanent staff and 41 contract staff.
This represented a six per cent (6 per cent) decrease 40 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 over the staffing as at September 30, 2015.

During the period, forty-two (42) staff members separated from the Bank, largely due to attrition and contract expirations.

The Bank recognises staff as its key resource in accomplishing its objectives and is committed to ensuring that each member of staff has the opportunity to reach his/her potential both for individual and corporate benefit.
In this regard, staff members are exposed to targeted training and developmental opportunities to address certain competency gaps and/or develop competencies to build capacity.

Such interventions continued during FY 2015/2016 with over 50 per cent of staff participating in one or more in-house, local and overseas training interventions.

The Bank wide Staff Training and Development Plan was formalised, presented to and approved by the Board of Directors.
Its implementation will be measured semi-annually to assess effectiveness and to ensure that the Bank’s training objectives are being met.

The Bank continued its succession planning efforts with the promotion of 28 employees including one (1) senior employee to the managerial level.
As part of the Bank’s continued support for the development of its human capital, online access to a Leadership & Management Learning Center (LMLC) was made available to all staff as part of the Personal Performance Management System (PPMS).

LMLC provided supplemental training options to staff by offering easy, online access to training reference materials intended to bridge the gap between the identified training and development need and the desired outcome.
The materials include access to databases, e-books, journals and magazines, as well as a versatile discovery tool for searching across all library resources.

During this financial year, the Bank automated the entire Performance Management process, a major accomplishment as it simplified the assessment process for management and staff.

There is also the added bonus that this contributes to the Bank’s efforts at going green.
Economic and Statistical Services In FY 2015/2016, the Bank’s policy work came into sharper focus given the country’s economic circumstances.

The Bank was involved in several meetings with the International Monetary Fund, credit rating agencies as well as various Government ministries.

In July, the 41 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 Bank also assisted in the preparations for the Government’s road show for the US dollar 1 billion international bond.
The Bank also initiated the triennial review of the Mortgage Market Reference Rate (MMRR) as mandated by the MMRR guidelines.

The MMRR is a benchmark rate computed quarterly by the Bank and used by licensees to calculate their respective mortgage rates.

The research agenda for FY 2015-2016 was geared to identifying issues of importance to the Bank and the economy.
The topics of papers completed during the year included: the implications of the US as an oil exporter, measures of labour productivity, monetary policy and macro-prudential policy, and financial market indicators.

The Research Discussion series continued throughout the year with economists presenting their work and receiving feedback from management and peers.
Staff of the Bank also presented papers at regional research conferences including the Caribbean Centre for Money and Finance and the Barbados Research Review Seminar.

As part of its function of economic intelligence reporting, the Bank published the Annual Economic Survey, Economic Bulletin, Monetary Policy Report, Financial Stability Report and Balance of Payments.
The Bank also utilised the Financial Programming framework to conduct macroeconomic forecasting, which provided medium term (3 years) forecasts of key macro variables for the economy of Trinidad and Tobago.
In keeping with the thrust of enhancing collaboration and research networks with regional and global entities, the Bank benefitted from Technical Assistance Missions by the International Monetary Fund to facilitate the full migration of the External Sector Statistics (Balance of Payments and International Investment Position) to the latest international standard – the Balance of Payments Manual, 6th Edition.

The collaboration led to an improvement in the general coverage and quality of the data collected.
These revised data will be made available to the public in the coming fiscal year.

Further, the Bank published a rebased Quarterly Gross Domestic Product Index (Base Year 2010) in the July 2016 Economic Bulletin.

This rebasing, together with the inclusion of additional indicators, has improved the quality of the Bank’s index of growth within the economy.

42 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 Over the period, the Bank engaged in several joint initiatives.
The Bank worked closely with the Ministry of Finance to implement reporting of the country’s debt statistics using the recently implemented Commonwealth Secretariat Debt Recording and Management System.

Through collaboration among various departments, key milestones were achieved as the Bank moved towards Basel II compliance..

The successful upgrade of the Bank’s primary data storage environment, the Market Map Analytical Platform (formerly FAME), was also undertaken.
This upgrade made web-based data collection solutions possible, which will significantly improve the efficiency of the Bank’s operations.

Finally, the Bank continued to broaden the range and improve the presentation of data published on its website while strengthening the capacity of the Central Statistical Office (CSO) through the provision of computers and temporary staff.
Information Technology In April 2016, the Information Technology Department was repositioned with a clear mandate of keeping the Bank’s information safe and its operations efficient.

The department was renamed Financial Technology and Information Security (FTIS) and a sub- committee of the Board was appointed to oversee its effectiveness.

During the reporting period, availability of the Bank’s core applications was maintained at over 99 per cent.
In an effort to strengthen and enhance the IT infrastructure, work also commenced on a diagnostic of the safety and appropriateness of the Bank’s systems resulting in some quick-wins and immediate system upgrades.

Recognising the systemic nature of cyber risk and its potential impact on financial stability, the Bank increased its focus on cyber resilience of its own systems and those of its licensees.

To this end, an Information Security plan is being developed with two key components.
These are: a) Strengthening of the Bank’s defenses through education, awareness, enhanced monitoring and a general hardening of the infrastructure; this will provide an 43 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 integrated approach to efficiently identify, capture, store, manage, locate and retrieve all information throughout the organisation; b) Establishing minimum standards and frameworks to ensure the financial system’s resilience to cyber threats.
In this regard, in August 2016, a cybersecurity governance ‘health check’ was conducted on all commercial banks through self-assessments by their Boards and senior management teams.

This will be followed by a technical ‘health check’ of cyber risk management which will provide a baseline for ongoing risk assessments and examinations by the Bank’s Supervisory arm.
Given the interconnectivity of the financial system across the region and globally, and the growing reliance on information technology in almost every aspect of operations, the Bank is engaging regional central banks to establish an Information Sharing mechanism and protocols.

This will result in sharing of best practices leading to improved threat intelligence and collective responsiveness to technology led threats.
The Bank also completed the review and update of key policies and procedures governing the creation, capture and management of its records and information to ensure that the Bank meets its business, legal and regulatory requirements in this constantly changing environment.

Significant efforts were focused on the capture and management of the Bank’s vital records for business continuity and disaster recovery purposes.
Several new information databases were also introduced to provide relevant information required to meet the Bank’s strategic objectives.

The Bank will be embarking on the establishment of a comprehensive information management solution with the implementation of an Electronic Document and Records Management System in the new financial year.

This new solution will provide an integrated approach to efficiently identify, capture, store, manage, locate and retrieve all information throughout the organisation.
Community Engagement and Outreach The Bank places great emphasis on communication with the general public and with the regional and international community.

44 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 Consistent with the Bank’s annual calendar of events, Monetary Policy Reports were presented in November 2015 and May 2016 while the 2015 Financial Stability Report was launched in June 2016.

These presentations were made to the business sector and key stakeholders including the media.
Governor - Dr. Alvin Hilaire, Inspector of Financial Institutions (Ag.)
- Mrs. Michelle Chong Tai-Bell and Deputy Inspector, Banks, Non-Banks and Payment Systems Oversight - Mrs. Michelle Francis-Pantor (left to right) at the 2015 Financial Stability Report Media Conference in June 2016 Deputy Governor – Dr. Sandra Sookram and Senior Manager, Operations – Mr. Alister Noel (left to right) at the launch of the Monetary Policy Report in May 2016 The Bank is also committed to the support of the local performing arts and the Auditorium remains a highly sought after theatre space.
As part of our Corporate Social Responsibility (CSR), the Bank engages in a number of activities including the hosting of lectures and exhibitions, money museum outreach programmes and the provision of support to organisations and entities consistent with our CSR Policy.

Financial Services On April 1, 2016, the Central Bank of Trinidad and Tobago appointed Mr. Dominic Stoddard as Financial Services Ombudsman for a period of three (3) years.
Consistent with the provisions of the Terms of Reference (TORs) which governs the operations of the Financial Services Ombudsman Scheme, this appointment was done following consultation with the Bankers Association of Trinidad and Tobago (BATT) and the Association of Trinidad and Tobago Insurance Companies (ATTIC).
45 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 A decision was taken to expand the role of the Office of the Financial Services Ombudsman (OFSO) to include the functions of the National Financial Literacy Programme (NFLP).
The OFSO has formed several strategic alliances, partnering with various stakeholders including the Trinidad and Tobago Insurance Institute, the Geriatric Adolescent Partnership Programme, the Youth Training and Employment Partnership Programme as well as the Ministry of Labour and Small Enterprise Development, for the achievement of common objectives.

Consumer Protection and Financial Literacy The Bank compiled a schedule of the Fees and Charges of commercial banks.
The results of the survey, a “Comparative Schedule of Fees and Charges of Commercial Banks as at June 30, 2016” was posted on the Central Bank’s website in September 2016 and will be updated on an annual basis.

The publication of comparative information is expected to encourage greater transparency and allow members of the public to make more informed decisions.
The National Financial Literacy Programme (NFLP) was actively focused on Students and Young Adults, Community and Niche Groups, Small and Medium Enterprises (SMEs), participation in external events and supporting in-house activities.

Over 1000 post SEA students were recipients of financial literacy sessions.

For community and niche groups, the department spread financial literacy to over 1600 representatives and members of various organisations.
Not to be left out, SMEs were also covered, with a targeted partnership engaged with the Tourism Development Company Ltd. At external events, ranging from expositions and fairs to participation in cultural events, over 700 members of the public were made aware of the offerings of the department.

Internally as well, the NFLP in partnership with the External Relations Department, via the Money Museum, presented its message to in excess of 200 visitors to the Central Bank.
The NFLP’s the main areas of focus in FY2016/17 will be budgeting, managing debt and financial fraud.

46 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 Memorial Lectures The Dr. Rudranath Capildeo Lecture was introduced in 2014 to commemorate the outstanding contribution made by Dr. Capildeo in politics and law as Trinidad and Tobago’s first Opposition Leader and on the world stage as an acclaimed scientist and mathematician.

Noted scholar and historian, Fr.


Anthony De Verteuil C.S.Sp (also well-known as a past principal of St. Mary’s College, Port of Spain) delivered this Lecture on May 20, 2016.

His topic, the eye-opening “Decisions and Destiny – The Life of Pundit Capildeo Maharaj” was wholeheartedly appreciated by those in attendance.
Father Anthony de Verteuil - Dr. Rudranath Capildeo Lecture in May 2016 The Bank celebrated its 30th edition of its annual flagship event, the Dr. Eric Williams Memorial Lecture Series on July 23, 2016.

The distinguished lecture series was established to honour the life and work of Trinidad and Tobago’s first Prime Minister Dr. Eric Williams, and over the years has featured inspiring presentations from eminent scholars, statesmen and intellectuals.
Barbados-born Sir Hilary Beckles KA, historian and Vice-Chancellor of the University of the West Indies (UWI), was the feature speaker and delivered an exceptional lecture titled “The University Sector and Economic Development in the Caribbean” to an appreciative and enthusiastic audience.

47 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 Sir Hilary Beckles KA - 30th Dr. Eric Williams Memorial Lecture in July 2016 The Bank launched exhibitions at both lectures.
The Dr. Rudranath Capildeo exhibition highlighted the journey and life of Dr. Rudranath Capildeo’s father, Pundit Capildeo and the Dr. Eric Williams Memorial exhibition featured all of the past Lecturers of the series since its inception in 1983.
De La Rue Currency Scholarship Programme During FY 2015/2016, in keeping with the agreement with De La Rue Currency (DLR) to review the Memorandum of Understanding (MOU) every three (3) years, the Bank reviewed the MOU for the De La Rue Currency Scholarship Programme and proposed several key changes to ensure that the MOU and the scholarship meet the needs of all stakeholders.
Since its inception in 2003, the Bank’s partnership with DLR has resulted in the award of 16 scholarships to deserving Trinidad and Tobago students – currently seven (7) of these recipients are employed by the Bank.
De La Rue Scholarship Winner, Ms. Ashley Bobb with Governor Alvin Hilaire and De La Rue representative, Mr. Barnaby Dicks at the Awards Ceremony in January 2016 48 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 Vacation Internships The Bank's annual Vacation Internship Programme (VIP) continued with 33 interns who were exposed to on-the-job training and various training programmes to develop relevant skills and competencies to assist them with their transition from university to the workplace.
2016 Vacation Internship group with Mrs. Nicole Crooks and Governor Alvin Hilaire in August 2016 49 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 Money Museum The Central Bank Money Museum is an educational resource on the history and development of money and banking in Trinidad and Tobago.

The programmes create an environment of continuous engagement where people may enjoy educational experiences outside of the traditional settings.
Although the museum remains closed for renovations and upgrading, the Central Bank hosts visitors and schools in the Auditorium through bookings.

Members of the Research Department and National Financial Literacy Programme (NFLP), as well as the staff of the Money Museum deliver presentations to visitors and a temporary display of museum artefacts is mounted in the Auditorium Lounge for visitor viewing on these particular days.
For FY 2015/2016, 441 persons visited the museum, 43 adults and 398 students, ages 3 to 19 years old.

Schools and groups from locations all over the country have benefited from this programme, which makes the Bank more accessible to the public and offers a learning experience that is exciting and quite different from what students may experience in their classrooms.

The Money Museum held successful outreach programmes at the Divali Nagar during FY 2015/2016.
Exhibits included early forms of money, Trinidad and Tobago’s first $50 note and samples of destroyed currency.

Visitors learned about the history and development of currency in Trinidad and Tobago, as well as the role and functions of the Central Bank.

To celebrate Emancipation 2016, the Money Museum participated for the first time in the Lidj Yasu Omowale Emancipation Village at the Queen’s Park Savannah, Port of Spain.
The booth featured displays on the origins of money; the history of currency in Trinidad and Tobago and information on the role of the Central Bank and was set up during the Trans- Atlantic Expo, from July 28, ending on Emancipation Day, August 1, 2016.

50 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 Visitors to the Bank’s booth at the Emancipation Village in August 2016 Sports and Cultural Club The Sports and Cultural Club held elections in 2016 and a new Executive was selected.
The Club ensured the Bank’s participation in the Intra-Regional Games in Suriname where we placed third.

The Bank is also an enthusiastic supporter of the CariFin annual sports event and has continued to be a major contributor and sponsor of the Games since its inception.

The 2016 Games were launched with Governor Dr. Alvin Hilaire leading the Torch Run, accompanied by the heads of the participating financial institutions.
Charitable Work, Health and Wellness Staff continued to participate in our very own We Care charity programme.

A number of homes were invited to our Children’s Christmas party in December 2015 where the children were able to experience Christmas cheer and the Homes were beneficiaries of hampers.

A few schools with children needing support for school items were able to benefit from our Back to School Programme in August 2016.
The We Care Programme was reviewed and now operates with a governance structure aimed at improving transparency and accountability.

51 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 Guests at the Bank’s Children’s Christmas Party in December 2015 The Bank is also committed to deepening the engagement with staff and retirees.

During the year, we hosted a number of internal events aimed at enhancing employee communication and engagement where staff members attended and participated.
A Health and Wellness Seminar for the Bank’s retirees took place on October 31, 2015.

This year’s theme was ‘Live, Love & Laugh’ with an attendance of approximately 50 retirees.

As is customary, the North West Regional Health Authority (NWRHA) offered basic medical screening to all retirees.

In addition the Bank’s EAP provider, ‘Arts in Action’ facilitated an interactive session addressing the issue of transitioning from the workplace to retirement.
52 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 53 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 54 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 55 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 56 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 57 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 58 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 59 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 60 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 61 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 62 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 63 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 64 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 65 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 66 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 67 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 68 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 69 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 70 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 71 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 72 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 73 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 74 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 75 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 76 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 77 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 78 CENTRAL BANK OF TRINIDAD
 AND TOBAGO ANNUAL REPORT 2016 79 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 80 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 81 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 82 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 83 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 84 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 85 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 86 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 87 CENTRAL BANK OF
 TRINIDAD AND TOBAGO ANNUAL REPORT 2016 88 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 89 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 90 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 91 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 92 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 93 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 94 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 95 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 96 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 97 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 98 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 99 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 100 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 101 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 102 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 103 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 104 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 105 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 106 CENTRAL BANK OF TRINIDAD AND TOBAGO ANNUAL REPORT 2016 107