BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
NON-CONSOLIDATED ANNUAL REPORT 2015
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BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED
Notes to the Non-consolidated Financial Statements
For the year ended March 31, 2015
(Expressed in Barbados dollars)
43
24. Financial Risk Management…(continued)
Credit risk…(continued)
Exposure to credit risk before collateral held or other credit enhancements
Credit risk exposures relating to on-balance sheet assets are as follows:
Maximum exposure
2015
2014
Loans and advances to customers:
Consumer
$ 505,612,835 461,624,260
Mortgages
234,895,063 217,097,920
Business
2,763,033 2,829,672
Financial investments:
Held-to-maturity
23,838,462
20,395,633
Cash resources
93,772,722 109,228,502
Credit risk exposures relating to off-balance sheet items are as follows:
Loan commitments
52,655,950 43,347,383
Total maximum exposure
$ 913,538,065 854,523,370
The above table represents the maximum credit risk exposure of the Credit Union as of
March 31, 2015 and March 31, 2014, without taking account of any collateral held or other credit
enhancements attached. For on-balance sheet assets, the exposures set out above are based on net
carrying amounts as reported in the statement of financial position.
Credit quality by class of financial assets
Loans and advances
The credit quality of the loans and advances is managed through the prudent underwriting principles
established by the Credit Union.
Financial investments
The Credit Union has principally invested in government bonds issued by the Government of Barbados
which in the 2014 financial year was downgraded to a BB+ rating by Standard & Poors. During the year
ended March 31, 2015, this rating was further downgraded to BB-.
Cash resources
The credit quality of financial institutions holding the Credit Unionʼs cash resources is assessed
according to the level of their credit worthiness and by comparison to other financial institutions. The
Credit Union places its cash resources with reputable financial institutions.
