Page 71 - Ecobank Gambia Annual Report 2020

revisiting the market risk management policies and issuance of foreign currency debt in order to raise funds
relative limits to from international markets, which is managed using
ensure that the Bank’s market risk management objective hedging strategies.
is met. Market interest rate risk may result in of loss from
The Bank does not hold any exposure which are traded fluctuations in the future cash flows or fair values of
in its portfolios. financial instruments. Interest rate risk is managed
Non-trading portfolio principally through monitoring interest rate gaps and
The main non-trading risk types are structural foreign basis risk and by having pre-approved limits for repricing
exchange, interest rates and credit spreads. bands.
Structural foreign exchange risk derives from the Group’s Credit spreads reflect the credit risk of the financial
net investments in foreign operations, as well as from instrument, i.e. risk that a customer or counterparty will
default on its contractual obligations resulting in financial
loss to the Bank.

The following table sets out the allocation of the carrying value of assets and liabilities subject to market risk between
trading and non-trading portfolios:

Carrying Trading Non-trading
amount portfolios portfolios
GMD’000 GMD’000 GMD’000

31-Dec-20

Assets subject to market risk

Cash and cash equivalents 2,465,197 - 2,465,197

Loans and advances to banks 3,390,783 - 3,390,783

Loans and advances to customers 1,095,995 - 1,095,995

Investment securities 3,738,449 - 3,738,449

10,690,424 - 10,690,424

Liabilities subject to market risk

Deposits from banks 165,404 - 165,404

Deposits from customers 8,987,134 - 8,987,134

Debt secrities issued - - -

9,152,538 - 9,152,538

• Investment securities is the addition of Treasury Bills and Government bonds

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