Capital resources review

Article 5.3 of the Agreement establishing the Bank specifies that "The Board of Governors shall at intervals of no more than five (5) years review the capital stock of the Bank".

The last review by the Board of Governors of the capital stock of the Bank took place in 2001. Therefore, the Board of Governors has the statutory duty to conduct the present Capital Resources Review (CRR3) in 2006 to cover the period 2006-2010.

To assess the Bank’s operational strategy and capital adequacy for the next five years, the Bank has carried out a thorough analysis of:

• operational and financial results and transition impact achieved during the period of the second capital resources review (CRR2) 2001-2005;
• expected economic outlook and risks;
• medium term strategic objectives for the Bank for the period 2006-2010;
• transition challenges ahead;
• indicative projections of the Bank’s activities in areas and sectors of operations;
• indicative projections of the Bank’s future resource framework and financial performance during the CRR3 period; and
• headroom, BIS2 ratios and economic capital.

The Annex to this document provides a comprehensive and well-founded analysis on which to base the strategic directions of the Bank over the period 2006 to 2010 in terms of transition objectives, operational activity, risk, financial performance and resource requirements.