89 SEPARATE FINANCIAL STATEMENTS 2023 Barbados Public Workers’ Co-operative Credit Union Limited Notes to the Separate Financial Statements March 31, 2023 (expressed in Barbados dollars) 61 23 Financial risk management …continued Credit risk …continued Key inputs and assumptions: …continued Changes in scenario design and the weights associated to each scenario All scenarios considered in our analysis include the impact of the economic conditions as at March 31, 2023; reflective of current economic conditions. In determining our IFRS 9 allowance for credit losses, we reassessed our scenario weights to more heavily weigh the downside scenarios contrast to that which was predicted. Loans and advances The Credit Union employs a range of policies and practices to mitigate credit risk relating to loans and advances. The most traditional of these is the taking of security for funds advanced. The principal collateral types for loans and advances within the Credit Union are: - Mortgages over residential properties - Charges over financial instruments such as debt securities and equities - Charges over business assets such as premises - Hypothecation of deposit balances It is the Credit Union’s policy to dispose of repossessed properties in an orderly fashion. The proceeds are used to reduce or repay the outstanding claims. The Credit Union does not occupy repossessed properties for business use. Generally, the Credit Union updates the valuation of property held against exposures to members on inception of the loan. However, a more formal valuation is performed, when: - loan is 90 days past due and is deemed to have experienced a significant increase in credit risk; and/or - the valuation is required to provide input into determining management’s credit risk actions.
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