Consolidated Annual Report 2016

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.