MCCU Annual Report - page 91

91
31. Financial Instruments and Financial Instruments Risk Management (cont'd):
c) Market Risk (cont'd.)
ii) Interest rate risk (cont'd)
Sensitivity Analysis
Interest Rate
Interest Rate
%
$
%
$
Financial Assets
Liquid Assets
Local Savings Accounts
0.08
119
0.08
113
Foreign Savings Accounts
0.2
45,314
0.2
39,300
Held-to-Maturity Investments
2.0
9,399,190
2.0
8,543,286
Loans to Members
0.2
3,580,417
0.2
3,142,872
Financial Investments
1.25
6,949,098
1.25
7,883,788
19,974,138
19,609,359
Financial Liabilities
0.05
667,563
0.05
620,403
Savings Deposits
0.1
1,132,538
0.1
1,003,448
1,800,101
1,623,851
18,174,038
17,985,508
This analysis assumes that all other variables, in particular exchange rates, remain constant.
Assuming interest rate movements as set out below these would affect surplus and equity as follows:
The downward movement in interest rates is expected to continue as a result of the National Debt Exchange
(NDX) agreement instituted by the Government of Jamaica in February 2013.
2013
Members' Voluntary Share Capital
NOTES TO THE FINANCIAL STATEMENTS - (CONT'D)
2012
YEAR ENDED 31ST DECEMBER 2013
MANCHESTER CO-OPERATIVE CREDIT UNION (1977) LIMITED
During the period December 2012 to February 2013, interest rates continued to trend downward, with the BOJ 3-
6 months deposit rates moving by approximately 140 basis points from 6.9% to 5.5% as a result of GOJ's
continuing its policies of lowering interest rates.
MANCHESTER CO-OPERATIVE CREDIT UNION
ANNUAL REPORT 2013
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