2018 Financial Stability Report

Figure 32: Credit Unions Institutional Capital

4.0

3.0

2.0

1.0

EC$Billions

0.0

2015

2016

2017

2018

Institutional Capital

Source: Single Regulatory Units and ECCB

The data indicated that levels of capital are sufficient to meet any shortfall of loan loss provisioning. However, credit risk, which pose the greatest threat to the sector, requires continued monitoring particularly in countries with increasing NPL levels. Additionally, as credit unions continue to expand their operations and are becoming more significant players in the financial system, several risks are becoming apparent. Risks associated with cybersecurity and fraud are likely to be of greater concern. It is therefore important that credit unions adopt strategies that will strengthen their technological infrastructure and thereby enhance their risk management framework.

Financial Stability Report 2018

30