Non-Consolidated Annual Report 2015

BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED NON-CONSOLIDATED ANNUAL REPORT 2015 54 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.