Page 135 - RB GRENADA ANNUAL REPORT 2025_ONLINE

• 135

Notes to the Financial Statements

For the year ended September 30, 2025. Expressed in Thousands of Eastern Caribbean dollars ($’000), except where otherwise stated.

18 Risk management (continued)
18.3 Liquidity risk (continued)

Three primary sources of funds are used to provide liquidity – retail deposits, wholesale deposits and the capital market.
A substantial portion of the Bank is funded with “core deposits”. The Bank maintains a core base of retail and wholesale
funds, which can be drawn on to meet ongoing liquidity needs. The capital markets are accessed for medium to long-
term funds as required, providing diverse funding sources to the Bank. Facilities are also established with correspondent
banks, which can provide additional liquidity as conditions demand.

The Asset/Liability Committee (ALCO) sets targets for daily float, allowable liquid assets and funding diversification in
line with system liquidity trends. While the primary asset used for short-term liquidity management is the Treasury Bill,
the Bank also holds investments in other Government securities, which can be used for liquidity support. The Bank
continually balances the need for short-term assets, which have lower yields, with the need for higher asset returns.

18.3.1 Analysis of financial liabilities by remaining contractual maturities
The table below summarises the maturity profile of the Bank’s financial liabilities at September 30, based on
contractual undiscounted repayment obligations, over the remaining life of those liabilities. These balances
include interest to be paid over the remaining life of the liabilities and will therefore be greater than the carrying
amounts on the Statement of financial position. See Note 22 for a maturity analysis of assets and liabilities.

Financial liabilities – on Statement of financial position

On Up to one 1 to 5
2025 demand year years Total

Customers’ current, savings and deposit accounts 1,755,430 62,758 4,453 1,822,641
Due to banks 4,732 – – 4,732
Due to related banks 6,990 – – 6,990
Due to related companies 269,732 – – 269,732
Lease liabilities – 89 869 958
Other liabilities 12,934 – – 12,934

Total undiscounted financial liabilities 2025 2,049,818 62,847 5,322 2,117,987

2024

Customers’ current, savings and deposit accounts 1,689,898 68,384 289 1,758,571
Due to banks 5,580 – – 5,580
Due to related banks 7,494 – – 7,494
Due to related companies 168,390 – – 168,390
Lease liabilities – 37 1,181 1,218
Other liabilities 14,169 – – 14,169

Total undiscounted financial liabilities 2024 1,885,531 68,421 1,470 1,955,422