Page 156 - RFHL ANNUAL REPORT 2024_ONLINE

154 Notes to the Consolidated Financial Statements
For the Year Ended September 30, 2024.
Expressed in millions of Trinidad and Tobago dollars, except where otherwise stated.

22. Risk management (continued)
22.2 Credit risk (continued)
22.2.1 Analysis of risk concentration (continued)

b Geographical sectors
The Group’s maximum credit exposure, after taking account of credit loss provisions established but before
taking into account any collateral held or other credit enhancements, can be analysed by the following
geographical regions based on the country of domicile of its counterparties:

2024 2023

Trinidad and Tobago 49,111 48,733
Barbados 10,348 10,252
Eastern Caribbean 13,774 12,300
Guyana 11,463 9,832
United States 8,751 9,212
Europe 6,562 2,962
Suriname 2,354 2,173
Ghana 51 3,322
Cayman Islands 9,741 8,563
Other countries 8,697 8,796

120,852 116,145

22.2.2 Impairment assessment
Financial asset provisions are reviewed quarterly in accordance with established guidelines and recommended
provisions arising out of this review are submitted to the Board for approval. Non-performing debts recommended
for write-off are also reviewed annually and action taken in accordance with prescribed guidelines. The Group’s
impairment assessment and measurement approach is set out below.

22.2.3 Default and recovery
The Group generally considers a financial instrument defaulted and therefore Stage 3 (credit-impaired) for ECL
calculations in cases when the borrower becomes 90 days past due on its contractual payments.

As a part of a qualitative assessment of whether a customer is in default, the Group also considers a variety
of instances that may indicate unlikeliness to pay. When such events occur, the Group carefully considers
whether the event should result in treating the customer as defaulted and therefore assessed as Stage 3 for ECL
calculations or whether Stage 2 is appropriate.

It is the Group’s policy to consider a financial instrument as ‘recovered’ and therefore re-classified out of Stage
3 when none of the default criteria have been present for at least six consecutive months. The decision whether
to classify an asset as Stage 2 or Stage 1 once recovered depends on the updated credit grade, at the time of
recovery.