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Annual Report 2018 EASTERN CREDIT UNION

continuity, uniformity and consistency in the loan process. We propose to go on a drive to meet with the different
levels of credit with a view to achieve the following:

 Strengthening the relationship between the Credit Committee, Branch Managers and Loans Officers;

 Employing an interpersonal approach to the existing channel of communication and facilitating direct
communication between the staff and the Credit Committee;

 Facilitation of improved processes for loan applications, monitoring and review systems;

 Improvement to the loan portfolio; and activity of loan demands and member accounts; and

 Achievement of excellence in the quality and efficacy of service that is rendered to our membership.

The Credit Committee has noted that the loan activity in Tobago is alarmingly sluggish, especially as it pertains to
Mortgages. The discussions with the Branch Manager and Credit Officers there, would be tailored specifically to
address the issues which affect the business activity at the Branch and to devise strategies to catalyze their loan
activity.

Proactive/Reactive Measures
As aforementioned, in the past year our society was faced with several loan liquidation requests from some of
our members through third party financial institutions for our members’ loans at these institutions to be paid off.
The institution recognized the immediate need to develop strategies to combat the ever evolving, competitive
and hostile financial space in Trinidad & Tobago. It is no secret that there are those that are considered traditional
lenders— those that sell furniture, household articles, Auto Dealers, Jewelry Stores, Pawn Shops and formal and
informal money lenders, inter alia. Whilst we are unable to speak about their source, methods and regulations
that guide their lending, the ease with which one can access unsecured borrowing from these establishments is
in itself enough cause for concern for the Society.

The Credit Committee is grateful to the Marketing Team and the Sales and Marketing Committee (a sub-Committee
of the Board) which joined hands with us throughout 2018 towards the rolling out of several loan products.
These products, honourable members, contained very favourable lending criteria. These criteria saw the society
foregoing and have waived, among other things, the share requirement, repayment terms, lower interest rates,
higher Debt Service Ratio and higher exposure. This came at a cost to the society, as we knew that our expected
income would be reduced, our risks would be increased and this would directly affect our expected surplus.
These policy revisions allowed us to hold the interests and needs of our members, bearing in mind the economic
climate in Trinidad and Tobago. Our members responded favourably to these products and we were able to keep
borrowing at an acceptable level. We will therefore see the reward from these measures in the middle to long
term. We are able to keep our Society’s doors open and continue to serve you the membership as we grow from
strength to strength.

NAVIGATING THE FUTURE TOGETHER 49