Home' Trinidad and Tobago Guardian : March 30th 2016 Contents B28
24 © 2016 Citibank, N.A. All rights reser ved. Citi and Arc
Design is a registered service mark of Citigroup Inc.
The Audit Committee is responsible for monitoring compliance with the Bank's
risk management policies and procedures, and for reviewing the adequacy of
the risk management framework in relation to the risks faced by the Bank. The
Audit Committee is assisted in these functions by Audit and Risk Review and the
Business Risk and Review Committees.
(b) Credit risk
principally from the Bank's loans and advances to customers and other banks
and investment securities. For risk management reporting purposes, the Bank
considers and consolidates all elements of credit risk exposure (such as individual
obligor default risk, country and sector risk).
For risk management purposes, credit risk arising on trading securities is
managed independently, but reported as a component of market risk exposure.
Management of credit risk
The Board of Directors has delegated responsibility for the management of credit
risk to the Credit Policy Committee. A separate Credit department, reporting to
the Credit Policy Committee, is responsible for oversight of the Bank's credit risk,
• Formulating credit policies in consultation with business units, covering
collateral requirements, credit assessment, risk grading and reporting,
documentary and legal procedures, and compliance with regulatory and
• Establishing the authorisation structure for the approval and renewal of credit
Larger facilities require approval by Credit Policy Committee or Head of
Credit, as appropriate.
• Reviewing and assessing credit risk. Credit assesses all credit exposures in
excess of designated limits, prior to facilities being committed to customers
to the same review process.
• Limiting concentrations of exposure to counterparties, geographies and
industries (for loans and advances), and by issuer, credit rating band, market
liquidity and country (for investment securities).
• Developing and maintaining the Bank's risk gradings in order to categorise
management on the attendant risks. The risk grading system is used in
or other credit risk mitigation. The responsibility for setting risk grades lies
• Reviewing compliance of business units with agreed exposure limits, including
those for selected industries, country risk and product types. Regular reports
are provided to the Credit Policy Committee on the credit quality of local
portfolios and appropriate corrective action is taken.
• Providing advice, guidance and specialist skills to business units to promote
best s in the management of credit risk. Regular audits of business units and
credit processes are undertaken by Audit and Risk Review.
Exposure to credit risk Commercial State and Other
2015 2014 2015 2014
897,588 945,443 81,350 104,813 2,565,940 2,674,919
Past due but
Neither past due
864,139 715,997 81,350 104,813 2,565,940 2,674,919
864,139 945,443 81,350 104,813 2,565,940 2,674,919
Total carrying amount 897,588 945,443 81,350 104,813 2,565,919 2,674,919
Citibank (Trinidad & Tobago) Limited
Notes to the Financial Statements
December 31, 2015
13. Commitments and Contingent Liabilities
In the normal course of business, various commitments and contingent liabilities
commitments to extend credit, which, in the opinion of management, do not represent
unusual risk, and no material losses are anticipated as a result of these transactions.
(a) Customers' liability under guarantees,
indemnities and letters of credit
Guarantees and indemnities
(b) Customers' liability under advances
Unused committed facilities
(c) Commitment under operating leases
The Bank's minimum commitment under the terms of various leases used
Rental due within one year
(d) Capital commitments
As at December 31, 2015 there were legal proceedings outstanding against the
Bank. Based upon legal advice, the Directors do not expect the outcome of those
14. Financial Instruments
and cash equivalents, other assets, customer deposits and other liabilities are a
reasonable estimate of their fair values because of the short maturity of these
Fair value is determined by reference to the most current yield curve for
best estimate is used to determine the fair value at which the securities can be
The loan portfolio is valued at amortised cost in the absence of an active
15. Financial Risk Management
(a) Introduction and overview
• credit risk
• settlement risk
• liquidity risk
• market risks
• operational risks
This Note presents information about the Bank's exposure to each of the above
risk and the Bank's management of capital.
Risk management framework
The Board of Directors has overall responsibility for the establishment and
oversight of the Bank's risk management framework. The Board has established
the Asset and Liability (ALCO), Credit and Operational Risk committees, which
are responsible for developing and monitoring the Bank's risk management
The Bank's risk management policies are established to identify and analyse
the risks faced by the Bank, to set appropriate risk limits and controls, and to
monitor risks and adherence to limits. Risk management policies and systems
services offered. The Bank, through its training and management standards and
procedures, aims to develop a disciplined and constructive control environment
in which all employees understand their roles and obligations.
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