Page 69 - GTBank Annual Report 2020 eBook

Repossessed collaterals:

During the period, the Bank took possession of property amounting to GMD22.654million (2019:
D18.495million) held as collateral against certain loans. The Bank obtained judgement for these
properties and sold them.

Details of repossessed collaterals during the period are shown below:

Dec.-2020 Dec.-2019
Type D

D
Property 1 5,500,000 3,654,630
Property 2 11,000,000 4,409,992
Property 3 1,279,057 5,228,444
Property 4 4,875,000 3,323,743
Property 5 - 1,878,018
Total 22,654,057 18,494,827

Liquidity risk
a) Liquidity Risk Governance 4. Regular monitoring of non-earning
assets
The board of directors retains ultimate 5. Monitoring of deposit concentration
responsibility for the effective management of 6. Ensure diversification of funding sources
liquidity risk. Through the Enterprise Risk 7. Monitoring of level of undrawn
commitments
Management Group (ERM), the board has 8. Maintaining a contingency funding plan.
delegated its responsibility for the management
of liquidity risk to the Asset and Liability
Management Committee (ALMAC). c) Liquidity Risk Measurement
b) Liquidity Risk There are two measures used for managing
Management liquidity risk namely: liquidity ratio mechanism
which is a statutory requirement from most
A brief overview of the bank's liquidity Central Bank in order to protect third party
management processes during the year includes deposits, and funding gap analysis of assets and
the following: liabilities.

1. Maintenance of minimum levels of liquid i) Liquidity ratios
and marketable assets above the
regulatory requirement of 30%. The
Bank has also set for itself more The key measure used for managing liquidity
stringent in-house limits above this risk is the ratio of net liquid assets to deposits
regulatory requirement to which it from customers. For this purpose, net liquid
adheres. assets are considered as including cash and
2. Monitoring of its cash flow and balance cash equivalents and investment grade debt
sheet trends. The Bank also makes securities for which there is an active and liquid
forecasts of anticipated deposits and market less any deposits from banks, debt
withdrawals to determine their potential securities issued, other borrowings and
effect on the Bank. commitment maturing within one month.
3. Regular measurement & monitoring of
its liquidity position/ratios in line with The liquidity position of the Bank remained
regulatory requirements and in-house strong in the course of the period and materially
limits above the minimum liquidity ratio requirement of
30% prescribed by the Central Bank of The Annual Report 2020

Guaranty Trust Bank Gambia Limited www.gtbankgambia.com 67