Credit Union Annual Report 2022 - Flipbook - Page 20
CREDIT COMMITTEE REPORT
Overview
This financial year was characterized by the continuation of low interest rates for the first 7 months, the
impact of aggressive increases in interest rates for
the last 5 months, predatory competition, and
escalating real estate values.
The low interest rate environment from August to
February, provided the commercial banks with an
opportunity to lure our members with lower interest
rates; however, the Credit Union was able to reduce
the outflow of loans to banks by being flexible and
competitive with interest rates on new loans to
members and by emphasizing our low borrowing
fees and interest rebate to our members.
Commercial banks commenced aggressively
increasing interest rates between March and July of
the financial year by a total of 2.25% which gave our
Credit Union a competitive advantage.
Members’ ability to qualify for loans was hampered
by the escalation in real estate values and the
increased costs of construction. However, lending
continued to be robust.
Our strong Credit Policy and Procedures aided in
keeping delinquency below 2%, at 1.07% (2021:1.90%)
and our strong liquidity facilitated the disbursement
of loans, resulting in an 12% growth in the loan book
from $323M to $362M.
The Credit Policy was reviewed and updated to
enhanced regulatory requirements and strengthen
controls during the financial year; the Credit
Committee provided valuable input during this
review.
The Credit Committee approved loans totalling
$99M (2021: $97M). All loans in excess of the limit for
the Committee as set out in the Credit Policy were
submitted to the Board of Directors for final review
and decision. All loans below the limit for the Credit
Committee were approved by the Internal Credit
Committee and the loan officers in accordance with
the Credit Policy.
Credit Union ANNUAL REPORT 2022
Matthew Tibbetts
Chairman
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