Page 88 - MCCU

MANCHESTER CO-OPERATIVE CREDIT UNION (1977) LTD.

CREDIT COMMITTEE REPORT

Introduction

W ith the continuous reduction in interest rates, all financial
institutions were forced to increase the number and dollar value of loans
to maintain sustainability. This resulted in institutions, such as the
commercial banks, aggressively seeking to gain new borrowers at the
expense of other institutions inclusive of Credit Unions. This has added
to other challenges namely, the impending implementation of the Bank
of Jamaica regulations, the Banking Act and IFRS9 accounting
governance.
In an effort to satisfy our members needs while maintaining a competitive
edge, Manchester Co-operative Credit Union (1977) Limited reviewed our
policies and procedures. Our staff compliment was also increased in the
Credit department to improve our service delivery and efficiency. These
RAYMOND HARPER
Chairman measures allowed our members to have greater access to loans while
improving their personal development.

The Credit Union was able to achieve a growth in the loan portfolio of 10.86% while simultaneously
reducing the delinquency rate. This was made possible with the combined efforts of committed staff and
loyal members.

Profile of Loans Disbursed by Purpose

The following chart displays the top five categories of loans disbursed by purpose during the year in
review. Motor Vehicle purchases accounted for the largest category disbursed in 2017 at $301 million
and 24% of the dollar value disbursed for 2017. Home Improvement, Debt Consolidation, Educational
Expense and Business Investment complete the top 5 list of purposes for loans disbursed.

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88 ANNUAL REPORT 2017