Page 44 - GTBank Annual Report 2020 eBook
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S/N Stakeholders Task Responsibilities
5. Financial Control • Review • Review the Forward-Looking Information
(FLI) and macro-economic variables for
completeness and accuracy
• Disclosure • The Finance department will ensure that all
data fields required under the detailed
disclosure requirement as laid down by the
regulator are being captured and no manual
intervention takes place outside of the ECL
policy and procedures.
• Ensure all relevant information pertaining to
the ECL methodology and the results are
presented to investors and various
stakeholders.
6. Internal Audit Validate ECL • Conduct periodic review and validation of the
valuation approved Internal Ratings assigned to
respective Obligors by Internal Audit
Department
• Independent validation of the ECL valuation
semi-annually
7. External Auditors Validate ECL • Semi-annual review and validation of the
valuation Internal Ratings
• Semi-annual review and validation of ECL
valuation
3.7. Reclassifications A change in intention related to
particular financial assets (even in
Financial assets are not reclassified circumstances of significant changes
subsequent to their initial recognition, except in market conditions)
in the year after the Bank changes its A temporary disappearance of a
business model for managing financial assets. particular market for financial assets.
A change in the Bank’s business model will A transfer of financial assets between
occur only when the Bank either begins or parts of the bank with different
ceases to perform an activity that is significant business models.
to its operations such as:
When reclassification occurs, the Bank
Significant internal restructuring or reclassifies all affected financial assets in
business combinations; for example, accordance with the new business model.
an acquisition of a private asset Reclassification is applied prospectively from
management company that might the ‘reclassification date’. Reclassification
necessitate transfer and sale of loans date is ‘the first day of the first reporting year
to willing buyers, this action will following the change in business model. For
constitute changes in business model example, if the Bank decides to shut down the
and subsequent reclassification of the retail business segment on 31st January
Loan held from BM1 to BM2 Category 2018, the reclassification date will be 1 April,
Disposal of a business line i.e., 2018 (i.e., the first day of the entity’s next
disposal of a business segment reporting year), the Bank shall not engage in
Any other reason that might warrant a activities consistent with its former business
change in the Bank’s business model model after 31st January 2018. Gains, losses
as determined by management based or interest previously recognised are not be
on facts and circumstances. restated when reclassification occurs.
The following are not considered to be
changes in the business model: Annual Report 2020
Guaranty Trust Bank Gambia Limited www.gtbankgambia.com 42
