NOTES TO THE FINANCIAL STATEMENTS AT 31ST DECEMBER, 2013
(continued)
19.
FINANCIAL RISK MANAGEMENT (continued)
Management of liquidity risk
The Credit Union’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity
to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Credit Union’s reputation. Liquidity management is primarily designed to ensure that funding requirement of
the Credit Union can be met or to satisfy the demands of customers for additional borrowings.
The primary source of funds for the Credit Union is from members’ deposits. Additional funds were sourced through credit
facilities at National Insurance Scheme (NIS) and RBTT Bank Grenada) Limited, the Credit Union has also procured funds via
the sale of mortgages to the Eastern Caribbean Home Mortgage Bank (ECHMB). These loans are sold with recourse and will
have to be repurchased by the Credit Union in the event of default.
Exposure to liquidity risk
The table below shows a maturity profile of the Credit Union’s financial liabilities.
On Demand
Up to 1 year
1 to 5 years
Over 5 years
Total
80,169,838
40,074,037
1,699,936
223,697
2,919,551
867,996
1,084,418
-
14,457,529
5,486,631
1,582,778
-
23,512,852
41,814
-
80,169,838
80,963,969
6,396,441
4,367,132
223,697
$122,167,508
$4,871,965
$21,526,938
$23,554,666
$172,121,077
Financial liabilities
Members’ deposits
Members’ regular shares
Borrowings
Non-interest bearing liabilities
Other liabilities
Balance at 31st December, 2013
79