Page 101 - GTBANK GAMNBIA 2021 ANNUAL REPORT

was recognized on treasury bills in 2021 and the to IFRS and The Central Bank of Gambia
closing balance as at 31 December 2021 is nil. guidelines. A total of D4, 787,000 was transferred
st
from the Credit Risk Reserve after comparing the
Credit risk reserve IFRS 9 provision to the CBG prudential provision.
The closing balance in the credit risk reserve is
The credit risk reserve represents the difference D42, 023,000.
between the allowance for impairment according
Credit risk reserve reconciliation

In thousands of Gambian Dalasi Dec.-2021 Dec.-2020
Provision per prudential guideline 53,740 68,936

Loan impairment per IFRS 58,527 73,037

Opening balance 46,810 50,911

CRR adjustment (4,787) (4,101)

Closing Balance 42,023 46,810

Retained earnings facilities are offset by corresponding obligations of
third parties. Contingent liabilities and
Retained earnings are the carried forward recognised commitments comprise acceptances,
income net of expenses plus current year profit endorsements, guarantees and letters of credit.
attributable to shareholders.

29. Contingents

Claims and litigation Nature of instruments

The Bank, in its ordinary course of business, is An acceptance is an undertaking by a bank to pay
presently involved in 3 cases as a plaintiff, 11 a bill of exchange drawn on a customer. The Bank
cases as defendant and 1 appeal case. The total expects most acceptances to be presented, but
amount claimed in the 3 cases instituted by the reimbursement by the customer is normally
Bank is D21, 445,000 whilst a refund of GMD8, immediate. Endorsements are residual liabilities of
171,252.00 is sought by the Bank in the matter the Bank in respect of bills of exchange, which
subject of an appeal. The amount claimed for in have been paid and subsequently rediscounted.
the 11 cases against the Bank is D33, 134,477.00. Guarantees and letters of credit are given as
security to support the performance of a customer
Based on the advice of the solicitors, the Directors to third parties. As the Bank will only be required to
are of the opinion that none of the aforementioned meet these obligations in the event of the
cases is likely to have a material adverse effect on customer’s default, the cash requirements of these
the Bank and they are not aware of any other instruments are expected to be considerably below
pending and or threatened claims or litigation their nominal amounts.
which may be material to the financial statements.
Other contingent liabilities include transaction
related customs and performances bond and are,
Contingent liabilities and commitments generally, commitments to third parties which are
not directly dependent on the customer’s
In common with other banks, the Bank conducts creditworthiness. Documentary credits commit the
Annual Report 2021
business involving acceptances, performance Bank to make payments to third parties, are on
bonds and indemnities. The majority of these production of documents, which usually

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