NOTES TO THE FINANCIAL STATEMENTS AT 31ST DECEMBER, 2013
(continued)
19.
FINANCIAL RISK MANAGEMENT
i)
Members’ loans
Exposure to credit risk is managed through regular analysis of the ability of borrowers to settle outstanding balances
and meet repayment obligations, and by changing lending limits when appropriate.
Management of Credit Risk (continued)
ii) Other financial assets
With respect to credit risk arising from the other financial assets of the Credit Union, which comprise cash and cash equiv
alents and investments, the Credit Union’s exposure to credit risk arises from default of the counter-party. The Credit Union
seeks to hold its funds with financial institutions which management regards as strong. Also the market for investments is
monitored regularly to ensure that returns are guaranteed.
Exposure to credit risk
The Credit Union’s maximum exposure to credit risk before collateral held or other credit enhancement is as follows:
Maximum Exposure
2013
Members’ loans
Loans and receivables financial assets
Available-for-sale financial assets
Accounts receivables and prepayments
Cash and cash equivalents
2012
145,332,804
15,595,836
979,450
2,494,648
4,361,849
$186,546,792
76
165,618,297
14,101,362
941,090
1,496,052
4,389,991
$168,764,587