BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED
Notes to the Non-consolidated Financial Statements
For the year ended March 31, 2013
(Expressed in Barbados dollars)
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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
2013
2012
Loans and advances to customers:
Consumer
$ 437,021,684 428,378,449
Mortgages
209,698,969 209,004,494
Business
3,048,163 3,391,587
Financial investments:
Held to maturity
16,377,955
11,317,370
Cash resources
110,240,420
90,691,178
Credit risk exposures relating to off-balance sheet items are as follows:
Loan commitments
38,630,226 36,242,258
Total maximum exposure
$ 815,017,417 779,025,336
The above table represents the maximum credit risk exposure of the Credit Union as of March 31,
2013 and March 31, 2012, 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 2012 financial year maintained a BBB rating by Standard & Poors. During the year ended
March 31, 2013, this rating was downgraded to BB+.
Cash resources
The credit quality of financial institutions holding the Credit Union’s 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.
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BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
ANNUAL REPORT 2013
