Page 149 - ACCESS ANNUAL REPORT 2019

NOTES (continued)
A a o nts are in tho sands o hana edis n ess otherwise stated
apita and reserves contin ed
Credit risk reserve
Credit ris reserve represents the excess o the total provisions or loans and advances provision determined in accordance with the Ban o Ghana prudential uidelines over the impairment loss or loans and advances reco nised in the income statement under the I RS ramewor . As at the reportin date, total provision or losses under the Ban o Ghana provisionin norms amount to G 309, 20,000 201 G 301,191,03 . his exceeds the impairment allowance or loans and advances and off alance sheet exposures reco nised under the I RS ramewor o G 152, ,0 9 201 G 1 , 1,91 , y G 15 ,1 1,911 201 G 11 ,5 9,11 .
Fair va e reserve
2019 2018
ain on he d to co ect and se investments
t 1 anuary
hanges in fair va ue gain of he d to co ect and se financia assets eferred ta ia i ity ote 21
, 548
11,797 (14,888) 3,722
t 1 ecem er
,
631
ontingencies
ai s and itigation
he Ban is de endin le al actions rou ht y various persons or claims amountin to G 5 ,3 , 201 G 1 , 9 , 5 . o provision in relation to these claims has een reco nised in the separate and consolidated financial statements as le al advice indicates that it is not pro a le that a si nificant lia ility will arise.
ontingent iabi ities and co it ents
In common with other an s, the Ban conducts usiness involvin acceptances, per ormance onds and indemnities. he ma ority o these acilities are offset y correspondin o li ations o third parties. Contin ent lia ilities and commitments comprise acceptances, uarantees and letters o credit.
Nature of instruments
An acceptance is an underta in y a an to pay a ill o exchan e drawn on a customer. he Ban expects most acceptances to e presented, ut reim ursement y the customer is normally immediate.
Guarantees and letters o credit are iven as security to support the per ormance o a customer to third parties. As the Ban will only e re uired to meet these o li ations in the event o the customer’s de ault, the cash re uirements o these instruments are expected to e considera ly elow their nominal amounts.
Other contin ent lia ilities include transaction related to per ormance onds and are, enerally, short term commitments to third parties which are not directly dependent on the customer’s creditworthiness.
Documentary credits commit the Ban to ma e payments to third parties, on production o documents, which are usually reim ursed immediately y customers.
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