48
BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
ANNUAL REPORT 2013
25. FINANCIAL RISK MANAGEMENT (CONTINUED)
25.3Liquidity risk and funding management
(continued)
Liquidity Risk – Financial Liabilities
2013
Within
Within
Within
Over
3 months 3 -12 months
1-5 years
5 years
Total
Deposits
$ 484,641,716
83,533,054
220,471,268
50,616,346
839,262,384
Loans payable
1,929,909
5,705,827
30,172,129
67,940,810
105,748,675
Reimbursable shares
-
-
5,726,048
-
5,726,048
Other liabilities
6,712,026
4,695,194
-
-
11,407,220
$ 493,283,651
93,934,075
256,369,445
118,557,156
962,144,327
2012
Within
Within
Within
Over
3 months 3 -12 months
1-5 years
5 years
Total
Deposits
$ 449,589,730
118,311,730
181,188,233
48,288,895
797,378,588
Loans payable
1,930,215
5,764,217
30,846,419
77,844,602
116,385,453
Reimbursable shares
-
-
4,532,147
-
4,532,147
Other liabilities
4,128,889
5,726,159
-
-
9,855,048
$ 455,648,834
129,802,106
216,566,799
126,133,497
928,151,236
25.4Market risk
Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market
variables such as interest rates, foreign exchange rates and equity prices. The Group is mainly exposed to interest rate risk.
The Group’s exposure to currency risk is minimal as a result of the fixed rate of exchange between the Barbados and Eastern
Caribbean dollar.
Interest rate risk
Interest rate risk is the risk of loss from the fluctuations in the future cash flows or fair values of financial instruments because
of a change in market interest rates. It arises when there is a mismatch between interest-bearing assets and interest-bearing
liabilities, which are subject to interest rate adjustments, within a specified period. It can be reflected as a loss of future net
interest income and/or a loss of current market values.
A summary of the Group’s interest rate gap position is as follows:
2013
Up to
Within
Within
Over Non-interest
3 months 3-12 months
1-5 years
5 years
bearing
Total
Assets
Cash resources
$ 64,136,924
49,920,700
-
- 3,375,829 117,433,453
Financial investments
327,656
2,268,955
10,459,000
6,594,742
- 19,650,353
Loans and advances
14,075,514
21,067,420 209,831,569 529,639,996
- 774,614,499
Other assets
-
-
-
- 5,017,755
5,017,755
Total assets
78,540,094
73,257,075 220,290,569 536,234,738
8,393,584 916,716,060
Liabilities
Deposits
475,441,737
80,393,748 193,559,391
22,925,464
- 772,320,340
Loans payable
1,103,485
3,337,039
20,240,673
49,794,950
-
74,476,147
Reimbursable shares
-
-
-
- 5,726,048
5,726,048
Other liabilities
5,152,543
-
-
- 6,254,677
11,407,220
Total liabilities
481,697,765
83,730,787 213,800,064
72,720,414
11,980,725 863,929,755
Interest rate gap
$ (403,157,671) (10,473,712)
6,490,505 463,514,324
(3,587,141)
52,786,305
Notes to the Consolidated Financial Statements
For the year ended March 31, 2013, with comparative figures for 2012
(Expressed in Barbados dollars)
