BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
NON-CONSOLIDATED ANNUAL REPORT 2015
60
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)
49
24. Financial Risk Management…(continued)
Market 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 Credit
Union is mainly exposed to interest rate risk. The Credit Unionʼs exposure to currency risk is minimal
since it does not have any significant foreign currency denominated assets.
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.
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)
50
24. Financial Risk Management…(continued)
Market risk…(continued)
Interest rate risk
…(continued)
A summary of the Credit Unionʼs interest rate gap position is as follows:
2015
Up to
Within
Within
Over
Non-interest
3 months 3-12 months
1-5 years
5 years
bearing
Cash resources
$
48,134,476
29,615,243
16,023,003
-
-
93,
Financial investments – Held-to-maturity
2,082,500
5,646,952
7,109,000
11,000,000
-
25,
Loans and advances
14,231,946
25,200,556 190,162,891 516,901,546
-
746,
Due from related companies
-
-
-
-
17,425,274
17,
Other assets
-
-
-
- 3,937,049
3,
Total assets
$ 64,448,922 60,462,751 213,294,894 527,901,546 21,362,323 887,
Deposits
$ 431,817,993
55,072,201 256,421,519
31,804,572
-
775,
Loans payable
765,343
2,332,256
13,298,434
17,049,099
-
33,
Reimbursable shares
-
-
-
-
6,700,221
6,
Other liabilities
-
-
-
- 7,418,620
7,
Total liabilities
432,583,336 57,404,457 269,719,953 48,853,671 14,118,841 822,
Interest rate gap
$ (368,134,414) 3,058,294 (56,425,059) 479,047,875 7,243,482 64,
2015
Up to
Within
Within
Over Non-interest
3 months 3-12 months 1-5 years 5 years bearing Total
Cash resources
$ 48,134,476 29,615,243 16,023,003
-
-
93,772,722
Financial investments –
Held-to-maturity
2,082,500
5,646,952 7,109,000 11,000,000
-
25,838,462
Loans and advances
14,231,946 25,200,556 190,162,891 516,901,546
-
746,496,939
Due from related companies
-
-
-
-
17,425,274 17,425,274
Other a sets
-
-
-
-
3,937,049 3,937,049
Total a sets
$ 64,448,922 60,462,751 213,294,894 527,901,546 21,362,3 3 887,470,446
Deposit
$ 431,817,993 55,072,201 256,421,519 31,804,572
-
775,116 85
Loans payable
765,343 2,332,256 13,298,434 17,049,099
-
33 45 132
Reimbursable shares
-
-
-
-
6,700,221 6,700,221
Other liabiliti
-
-
-
-
7,418,620 7 4 620
Total liabilities
432,583,336 57,404,457 269,71 ,953 48,853,671 14,11 ,841 822,680,258
Interest rate gap
$ (368,134,414)
3,058,294 (56,425,059) 479,047,875 7,243,482 64,790,188
