Consolidated Annual Report 2019

BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | CONSOLIDATED ANNUAL REPORT 2019 80 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Notes to the Consolidated Financial Statements For the year ended March 31, 2019 (Expressed in Barbados dollars) 65 26. Financial Risk Management, continued 26.2 Credit risk, continued The table represents the maximum credit risk exposure of the Group as of March 31, 2019 and March 31, 2018, 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 consolidated 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 2019 financial year was downgraded to SD (Selective Default) rating by Standard & Poor’s. During the year ended March 31, 2019, this rating was B - . Cash resources 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. The tables below show the credit quality and aging analysis by class of financial assets. 2019 Neither past due Past due but Individually nor impaired not impaired impaired Total Cash resources $ 252,514,651 - - 252,514,651 Financial investments: Amortized cost 23,227,755 - - 23,227,755 Loans and advances: Consumer 565,629,572 131,040,076 47,934,852 744,604,500 Mortgages 338,357,236 109,054,907 28,774,354 476,186,497 Business 23,701,240 9,742,220 1,168,161 34,611,621 Total $ 1,203,430,454 249,837,203 77,877,367 1,531,145,024