MCCU Annual Report - page 88

88
31. Financial Instruments and Financial Instruments Risk Management (cont'd):
c) Market Risk (cont'd.)
ii) Interest rate risk
Interest Rate
Interest Rate
%
$
%
$
Financial Assets
Liquid Assets
Local Savings Accounts
1.0
149,131
1.0
140,849
Foreign Savings Accounts
0.2 - 1.0
22,657,148
0.2 - 1.0
19,649,884
Foreign Currency Investments
3.2 - 7.00
30,937,276
2.25 - 7.25
37,118,137
Held-to-Maturity Investments
6.7 - 7.5
469,959,492
7.34 - 12.5
427,164,277
Loans to Members
4.0 - 30.0
1,790,208,729
4.0 - 30.0
1,571,436,133
Financial Investments
6.7 - 7.5
555,927,800
5.5 - 6.75
618,203,058
2,869,839,576
2,673,712,338
Financial Liabilities
Members' Voluntary Share Capital
2.0 - 3
1,335,126,053
2.0 - 2.5
1,240,806,081
Savings Deposits
1.0 - 6
1,132,537,532
1.0 - 5.1
1,003,447,538
2,467,663,585
2,244,253,619
402,175,991
429,458,719
Interest rate risk is the risk of loss from fluctuations in the future cash flows or fair values of financial
instruments due to a change in market interest rates. It arises when there is a mismatch between interest-earning
assets and interest-bearing liabilities which are subject to interest rate adjustments within a specified period. It
can be reflected as a loss of future net interest income and/or a loss of current market values. Interest rate risk is
managed principally through monitoring interest rate gaps and by setting pre-approved gap ratios. The General
Manager has oversight responsibility for the daily management and monitoring of interest rate risk and reports
monthly to the Board of Directors on its strategies and position.
2012
NOTES TO THE FINANCIAL STATEMENTS - (CONT'D)
MANCHESTER CO-OPERATIVE CREDIT UNION (1977) LIMITED
2013
YEAR ENDED 31ST DECEMBER 2013
At the date of the statement of financial position the Interest Profile of the Credit Union's interest bearing
financial instruments was:
MANCHESTER CO-OPERATIVE CREDIT UNION
ANNUAL REPORT 2013
I...,78,79,80,81,82,83,84,85,86,87 89,90,91,92,93,94,95,96,97,98,...126
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