61 (Expressed in Trinidad and Tobago Dollars) NOTES TO THE SPECIAL PURPOSE FINANCIAL STATEMENTS 30th June 2017 24 Financial risk management (continued) Investment securities The amounts in relation to investment securities are neither past due nor impaired. As such, no provisions have been made against the amounts. NIBTT holds collateral to cover its credit risks associated with specific investment securities considered most at risk. The maximum exposure to credit risk for investment securities at the reporting date by sector was: 2017 2016 $’000 $’000 Concentration by location Trinidad and Tobago 10,787,390 11,425,903 North America 216,600 69,953 Caribbean Territories 68,529 – Emerging markets 28,280 25,786 Total geographic concentration 11,100,799 11,521,642 The maximum exposure to credit risk for investment securities at the reporting date by location was: Concentration by industry type Cash and cash equivalent 2,730,401 3,201,399 Bonds 8,367,763 8,314,314 Mortgage advances 2,635 5,929 Total credit risk exposure 11,100,799 11,521,642 The Board has established a credit quality review process involving regular analysis of the ability of borrowers and other counterparties to meet interest and capital repayment obligations. a. Bonds The Board limits its exposure to credit risk by investing in liquid securities and with counterparties that have high credit quality. As a consequence, management’s expectation of default is low. The Board has documented investment policies which facilitate the management of credit risk on investment securities and resale agreements. The Board’s exposure and the credit ratings of its counterparties are continually monitored. b. Cash and cash equivalents Cash and cash equivalents are held in financial institutions which management regards as strong and there is no significant concentration. The strength of these financial institutions is continually reviewed by the Mark to Market Committee. c. Receivables Exposure to credit risk on receivables is managed through regular analysis of the ability of continuing customers and new customers to meet repayment obligations.