MCCU Annual Report - page 82

82
31. Financial Instruments and Financial Instruments Risk Management (cont'd):
a) Credit Risk- (Cont'd)
i)
Loans to members and guarantees - (cont'd)
ii)
Deposits and investment securities
iii) Non-Earning Asset
Liquid Assets
Others
Accordingly, management does not expect any counter-party to fail to meet its obligation.
Liquid assets on which the Credit Union faces credit risks comprise its current accounts held with financial
institutions. The Credit Union limits its exposure to credit risk by placing its liquid assets with counter-parties
that have high credit quality.
The Credit Union limits its exposure to credit risk by investing mainly in liquid assets. These investments are
held only with counterparties that have high credit quality and Government of Jamaica securities. The
management therefore does not expect any counterparty to fail to meet its obligations.
The Credit Union writes off loans and any related allowances for impairment losses when it is determined that
the loans are uncollectible. This determination is usually made after considering information such as changes in
the
borrower’s
financial position, or that proceeds from collateral will not be sufficient to pay back the entire
exposure.
YEAR ENDED 31ST DECEMBER 2013
MANCHESTER CO-OPERATIVE CREDIT UNION (1977) LIMITED
Write-off policy
Credit risks on other non-earning assets are managed by performing reconciliation of significant balances on a
daily basis and submission of settlement reports or returns at least monthly. Balances are normally settled within
a month, however, there is no specific settlement schedule for withholding taxes receivable.
There has been no change to the Credit
Union’s
exposure to credit risk or the manner in which it manages and
measures the risk.
NOTES TO THE FINANCIAL STATEMENTS - (CONT'D)
MANCHESTER CO-OPERATIVE CREDIT UNION
ANNUAL REPORT 2013
I...,72,73,74,75,76,77,78,79,80,81 83,84,85,86,87,88,89,90,91,92,...126
Powered by FlippingBook