2018 Financial Stability Report

Figure 27: Credit Union Loan Growth by Type

Despite the evidence of continued growth in the sector, credit risk remains elevated as non-performing loans increased by 8.9 per cent to EC$195.9m in 2018, from EC$179.9m reported at the end of 2017 (Figure 29).

35.0

0.0 0.4 0.8 1.2 1.6 2.0 2.4 2.8

25.0

15.0

5.0

Per cent (%)

(5.0)

EC$Billions

Figure 29: Credit Unions Non-performing Loans (NPLs)

(15.0)

2015 2016 2017 2018

Mortgages Non-mortgage Loans Mortgage Growth Non-mortgage loan Growth

100.0 150.0 200.0 250.0 300.0

20.0 40.0 60.0 80.0

*Source: Single Regulatory Units in the ECCU

(40.0) (20.0) -

Total deposits for the sector stood at EC$3.3b for 2018 up from EC$3.1b at the end of 2017 (Figure 28). The rate of growth in deposits reported for 2018, however, is 4.0 percentage points lower than the pace (11.7 per cent) recorded at the end of 2017.

EC$Millions

Per cent (%)

0.0 50.0

2015 2016 2017 2018

NPL

Growth in NPLs

Source: Single Regulatory Units and Eastern Caribbean Central Bank (ECCB)

Non-performing loans rose in four of the seven reporting territories; namely Antigua and Barbuda, Dominica, Grenada and St Vincent and the Grenadines. Dominica recorded the greatest increase (EC$15.6m) in non-performing loans, followed by Grenada, with an increase of EC$7.1m (Figure 30). The passage of Hurricane Maria in Dominica in September 2017 and closure of Ross University are likely to have contributed to the rise in NPLs.

Figure 28: Credit Unions Total Deposits

4.0

20.0

3.0

15.0

2.0

10.0

1.0

5.0

Per cent (%)

EC$ Billions

0.0

-

2015 2016 2017 2018

Total Deposits

Deposit Growth Rate

Source: Single Regulatory Units and Eastern Caribbean Central Bank (ECCB)

Financial Stability Report 2018

28