BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
CONSOLIDATED ANNUAL REPORT 2016
62
BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED
Notes to the Consolidated Financial Statements
For the year ended March 31, 2016
(Expressed in Barbados dollars)
50
25. Financial Risk Management,
continued
25.2 Credit risk,
continued
Exposure to credit risk before collateral held or other credit enhancements
Maximum exposure
Credit risk exposures relating to on-balance sheet assets are as follows:
2016
2015
Loans and advances to customers:
Consumer
$ 576,840,304 530,921,980
Mortgages
407,541,779 360,308,001
Business
9,392,178
9,390,964
Financial investments:
Held to maturity
29,074,183
25,838,462
Loans and receivables
3,550,855
3,112,780
Cash resources
128,343,666 108,772,406
Credit risk exposures relating to off-balance sheet items are as follows:
Loan commitments
75,659,531
82,768,484
Total maximum exposure
$ 1,230,402,496 1,121,113,077
The above table represents the maximum credit risk exposure of the Group as of March 31, 2016 and
March 31, 2015, 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 Group.
Financial investments
The Group has principally invested in government bonds issued by the Government of Barbados which
in the 2015 financial year was downgraded to a BB+ rating by Standard & Poors. During the year ended
March 31, 2016, this rating was further downgraded to BB-.
Cash and balances with Central Bank
The credit quality of financial institutions holding the Group’s cash resources is assessed according to
the level of their credit worthiness and by comparison to other financial institutions. The Group places its
cash resources with reputable financial institutions.
