Home' Trinidad and Tobago Guardian : June 26th 2014 Contents Thursday, June 26, 2014 www.guardian.co.tt Guardian
14. Stated Capital
An unlimited number of shares of no par value
Issued and fully paid
15,000,000 ordinary shares of no par value
15. Interest Income
Interest on loans and advances
Interest from investments
16. Interest Expense
Interest on customer deposits
17. Operating Expenses
Operating lease rentals
Advertising and marketing
Administrative and other expenses
(i) Provision for taxation
- Green Fund levy
- Corporation tax
Deferred tax expense relating to the origination
and reversal of temporary di erence
(ii) Tax reconciliation
The following is a reconciliation between the tax expense and the product of
income before taxation multiplied by the applicable tax rate:
Income before taxation
Expected tax calculated at statutory tax rate -- 25%
Net (expenses) income not assessable for tax
19. Contingent Liabilities
As at March 31, 2014, there were no legal proceedings outstanding against ITMBL, as such no
provisions were required (2013: $NIL).
20. Credit Commitments
As at March 31, 2014, the Bank has no commitments of a credit nature (2013: $NIL).
21. Capital Commitments
As at March 31, 2014 there were no capital commitments (2013: $NIL).
22. Financial Risk Management
Introduction and overview
ITMBL has exposure to the following risks from its use of nancial instruments:
This note presents information about ITMBL's exposure to each of the above risks, ITMBL's
objectives, policies and processes for measuring and managing risk, and ITMBL's management of
Introduction and overview (cont'd)
Risk management framework
The Board of Directors (the Board) has overall responsibility for the establishment and oversight of
ITMBL's risk management framework. The Board has established the Group Credit & Investment,
Audit and Risk Committees. These Board Committees currently employ an integrated Risk
Management Framework supported by four Management Committees in order to maximise
shareholders value within the group's risk appetite; Management Credit Committee, Portfolio
Planning, Asset and Liability (ALCO), and Operational Risk Committees, which are responsible
for developing and monitoring Risk Management Policies in their speci ed areas. All Board
Committees have non-executive members and report regularly to the Board on their activities.
ITMBL's Risk Management Policies are established to identify and analyse the risks faced by
ITMBL, to set appropriate risk limits and controls, and to monitor risks and adherence to limits.
Risk Management Policies and systems are reviewed regularly to re ect changes in market
conditions, products and services o ered. ITMBL, 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.
The Group Audit and Risk Committees are responsible for monitoring compliance with the Risk
Management Policies and procedures and for reviewing the adequacy of the Risk Management
Framework in relation to the risks faced by ITMBL. The Group Audit and Risk Committees are
assisted in these functions by Internal Audit. Internal Audit undertakes both regular and ad-hoc
reviews of Risk Management Controls and Procedures, the results of which are reported to the
(a) Credit risk
Credit risk is the risk of nancial loss to ITMBL if a customer or counter party to a nancial
instrument fails to meet its contractual obligations, and arises principally from ITMBL's
loans and advances to customers and other banks and investment securities. For Risk
Management reporting purposes, ITMBL considers and consolidates all elements of credit
risk exposure (such as individual obligor default risk, country and sector risk), and manages
credit risk arising on trading activities.
Management of credit risk
The Board has delegated responsibility for the management of credit risk to its Board Credit
Committee, Management Credit Committee Credit and Investment Committee. A separate
Credit Risk Department is responsible for oversight of ITMBL's credit risk, including:
Formulating credit policies in consultation with business units, covering collateral
requirements, credit assessment, risk grading and reporting, documentary and legal
procedures, and compliance, regulatory and statutory requirements.
Establishing the authorisation structure for the approval and renewal of credit facilities.
Authorisation limits are allocated on an individual basis and/or committee basis --
which includes: Management Credit Committee, and the Board Credit and Investment
Committee. Approval under each committee is based on delegated authority level as
approved by the Board.
Reviewing and assessing credit risk. Group Credit Risk assesses all credit exposures prior
to facilities being committed to customers by the business unit concerned. Renewals
and reviews of facilities are subject 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 ITMBL's risk rating system and guidelines is an integral
part of the Credit Appraisal process. Each borrower under the Corporate and
Commercial Credit categories has to be risk rated in accordance with the model
approved by the Group o ce. The risk rating assigned is reviewed annually or earlier
as appropriate. The accountability for the setting of the risk rating of the obligor
lies with the nal approving authority. The risk rating model takes into account risk
relating to management, to the business, collateral security, nancial performance
and transactional data. In the case of credit facilities to consumers, a scoring model is
used in the appraisal process. The risk rating or the credit score of the obligor re ects
the level risk associated with the exposure and is the main driver in pricing.
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 Group Credit Risk Unit on the credit quality of local portfolios and appropriate
corrective action is taken, where necessary.
Providing advice, guidance and specialist skills to business units to promote best
practice throughout ITMBL in the management of credit risk.
Notes to Financial Statements (cont'd)
March 31, 2014
Notes to Financial Statements (cont'd)
March 31, 2014
22. Financial Risk Management (cont'd)
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