The Co-operative Credit Union League of Trinidad & Tobago

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PEARLS

The World Council of Credit Union’s PEARLS Monitoring System is one of the tools to combine a powerful relational database with an internationally proven methodology for improving operational efficiency in credit unions. PEARLS provides credit union managers with concise, easy-to-read reports that reveal institutional strengths, weaknesses and trends. It also offers a strategic business planning tool to help managers implement change. The PEARLS Monitoring System includes:

P.E.A.R.L.S

P rotection
E ffective Financial Structure
A sset Quality
R ates of Return & Costs
L iquidity
S igns of Growth

P = Protection.

Protection is measured by comparing the adequacy of the provisions for loan losses against the amount of delinquent loans.

E = Effective Financial Structure.

Measures credit unions’ assets, liabilities and capital. Credit Unions are encouraged to maximize earning assets as the means to achieve sufficient earnings.

A = Asset Quality.

PEARLS indicators are used to identify the impact of non-earning assets by analyzing delinquency ratios, percentages of non-earning assets and the financing of non-earning assets.

R = Rates of Return and Costs.

PEARLS system helps management calculate investment yields and evaluate financial costs and operating expenses.

L = Liquidity.

Liquidity is traditionally viewed in terms of cash available to lend. Liquidity now refers to cash needed for withdrawals.

S = Signs of Growth.

Growth is measured in seven key areas: total assets, loans, savings, deposits, external credit, shares, institutional capital and membership.