93 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | SEPARATE FINANCIAL STATEMENTS 2022 BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED Notes to the Separate Financial Statements For the year ended March 31, 2022 (Expressed in Barbados dollars) 66 23. Financial Risk Management, continued Credit risk, continued The collateral value expressed as a percentage of the carrying value was 75.1 percent (2021: 68.3 percent). Assets obtained by taking possession of collateral Details of financial and non-financial assets obtained by the Credit Union during the year by taking possession of collateral held as security against loans and advances and held at the year-end are shown below. 2022 2021 Collateral repossessed during the year and held at year-end $ 1,121,427 9,435,521 $ 1,121,427 9,435,521 Financial investments The Credit Union limits its exposure to credit risk by investing only in entities that have high credit ratings and Government of Barbados securities. Government securities are invested over a longer period than term deposits with other financial institutions which typically mature within one year. The Credit Union also invested in FVOCI equity instruments which gives it an opportunity to monitor the performance of these companies over time and make economic decisions where warranted. The Credit Union has documented investment policies in place, which guide the management of credit risk on investments. Assessment of corporate investments (term deposits) Due to limited published market data for term deposits, the Credit Union's internally developed model using published credit rating scores for similar investees and/or Moody's published statistics was used to determine the Probability of Default (PD) rates and Loss Given Default (LGD) applied in the Estimated Credit Losses (ECL) on term deposits. The Credit Union currently has $43,645,290 (2021: $36,863,088) in corporate term deposits which were assessed on an entity level. Currently, these investments are held in entities which are either regulated by the Central Bank of Barbados or Financial Services Commission as per Section 34A of the Co-operative Societies Act.
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