95 SEPARATE FINANCIAL STATEMENTS 2024 Barbados Public Workers’ Co-operative Credit Union Limited Notes to the Separate Financial Statements March 31, 2024 (expressed in Barbados dollars) 61 23 Financial risk management …continued Credit risk …continued Loans and advances …continued The table below sets out the carrying amount and the value of identifiable collateral (mainly residential property) held against loans and advances to members measured at amortised cost. Where the same collateral is held against two or more loans, the market value of the collateral is proportionally assigned across loans based on the original amount loaned. For each loan, the value of disclosed collateral is capped at the nominal amount of the loan that it is held against. 2024 2023 Carrying amount $ Collateral $ Carrying amount $ Collateral $ Stage 1 962,591,043 816,853,264 976,357,786 772,183,480 Stage 2 27,027,187 21,398,724 40,297,623 29,911,116 Stage 3 172,581,702 114,012,689 162,564,166 102,355,359 1,162,199,932 952,264,677 1,179,219,575 904,449,955 The collateral value expressed as a percentage of the carrying value was 81.9 percent (2023: 76.7 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. 2024 $ 2023 $ Collateral repossessed during the year and held at year-end 282,059 180,711 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 invests 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.
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