JPSCU AR 2018 finan web
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NOTES TO THE FINANCIAL STATEMENTS<br />
For the year ended 31st December <strong>2018</strong><br />
(Expressed in Jamaican Dollars unless otherwise indicated)<br />
4.<br />
Financial Instruments & Financial Instruments Risk Management (cont'd):<br />
c) Market Risk (cont'd)<br />
ii) Interest rate risk (cont'd)<br />
At the date ofthestatement of <strong>finan</strong>cial position, the Interest Profile oftheCreditUnion's interest-bearing<br />
<strong>finan</strong>cial instruments was:<br />
Interest Rate <strong>2018</strong> Interest Rate 2017<br />
% $ % $<br />
Financial Assets<br />
Liquid Assets<br />
Foreign Deposits 0.85 - 2.20 29,734,217 0.85 - 2.20 28,702,756<br />
Liquid Investments 2.00 - 5.75 916,168,305 2.00 - 5.75 851,375,153<br />
Loans to Members 2 - 30.00 2,651,747,116 1.992 - 30.00 2,655,578,278<br />
HTM Investments 2.50-11.00 434,768,226 2.50-11.00 347,310,756<br />
4,032,417,864 3,882,966,943<br />
Financial Liabilities<br />
Savings Deposits 1.00 - 5.60 1,941,126,986 1.00 - 5.00 1,964,165,917<br />
Voluntary Shares 0.50 1,262,521,161 3.50 1,247,133,471<br />
3,203,648,147 3,211,299,388<br />
828,769,717 671,667,555<br />
Sensitivity Analysis<br />
During the period January <strong>2018</strong> to December <strong>2018</strong>, interest rates have moved downwards, with the BOJ 3-<br />
6months deposit rates moving by approximately 33 basis points from 4.9% to 4.57%. This trend is expected<br />
to continue as the Government of Jamaica (GOJ) continues its policies of lowering of interest rates.<br />
It should be noted that traditionally,CreditUnions do not respond as rapidly in their interest rates adjustment<br />
as other <strong>finan</strong>cial institutions and for certain securities the interest payment rates are fixed at the beginning<br />
of each year.<br />
Assuming interest rate movements as set out below, surplus and equity would be affected as follows:<br />
Interest Rate <strong>2018</strong> Interest Rate 2017<br />
% $ %<br />
$<br />
Financial Assets<br />
Liquid Assets<br />
Foreign Deposits - - 0.00 -<br />
Liquid Investments 0.00 - 0.00 -<br />
Loans to Members -0.004 106,070 -0.004 106,223<br />
HTM Investments 0.00 - 0.00 -<br />
106,070 106,223<br />
Financial Liabilities<br />
Savings Deposits 1.05 20,381,833 1.05 20,623,742<br />
Voluntary Shares 0.25 (3,156,303) 0.25 (3,117,834)<br />
17,225,530 17,505,908<br />
(17,119,461) (17,399,685)<br />
(17,119,461) (17,399,685)<br />
JPS & Partners Co-operative Credit Union 38
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