sJU5 398im5WjrIJirbeG-Credit Union AGM Booklet 2024 - Flipbook - Page 14
14 Credit Union AGM Booklet 2024
10.
TESTIMONIAL – Ravyn Rankin-Grant
10.1
Shane Bothwell, Manager of Security and Operations, read the testimonial of Ravyn RankinGrant, a former recipient of the Rupert McCoy Education Grant.
11.
CREDIT COMMITTEE’S REPORT
11.1
In a pre-recorded message, Louise Christine Burke-Richardson, the Chairperson of the Credit
Committee, presented the Credit Committee’s Report for the Financial Year.
11.2
The Chairperson reported that by working closely with the Chief Credit Of昀椀cer, the Credit
Committee could ensure the effective and ef昀椀cient credit administration and management of the
Credit Union’s loan portfolio and implement the credit and delinquency policies, as approved by
the Board.
11.3
The Chairperson stated that between July 2022 and July 2023, the Cayman Islands’ prime rate
skipped from 5.5% to 8.5%, an increase of 375 basis points, based on the US Federal Reserve
benchmark interest rate. She explained that the banks added a markup of approximately 3%
above the prime rate on mortgages and up to 6% on consumer loans. In contrast, the
Chairperson listed the following bene昀椀ts provided by the Credit Union:
11.4
a)
The lowest interest rates in the market – the Credit Union’s interest rates for mortgages
only increased by 0.75% or 75 basis points in October 2022, from 5.75% to 6.5%.
b)
Favourable loan terms include 100% 昀椀nancing for land and new vehicles, up to 95%
昀椀nancing for 昀椀rst-time homeowners, interest rebates for timely loan payments, and low
lending fees.
The Chairperson advised that the high demand for loan products resulted in $99.7 million in outof-share loans being approved based on established limits as follows:
a)
$8.9 million by the Board of Directors,
b)
$52.8 million by the Committee; and
c)
$37.9 million by the Internal Credit Committee.
She explained that the 44% increase in out-of-share loans approved was mainly due to a 10%
increase in land and home purchases, a 194% increase in mortgages switched from commercial
banks and new home purchases, and an 86% increase in new vehicle loans.
11.5
Regarding within-share loans, the Chairperson reported an increase of 6% over the Prior
Financial Year. She explained that members used their shares as collateral to borrow, given the
bene昀椀ts, namely, the lowest interest rate available, 昀氀exible repayment terms, the ability to earn
dividends, and the interest rebate.
11.6
Regarding unsecured loans, the Chairperson reported an increase of 12% over the Prior
Financial Year, as members used these short-term loans to assist with the increased cost of living.
11.7
Looking to the 昀椀nancial year 2023/24, the Chairperson advised that competition for new lending
was expected to increase, and the banks were expected to match the Credit Union’s interest
rates in an effort to attract members who may want to switch.
