Page 105 - CCB_Full-Annual-Report-2021

104 Notes to the Financial Statements 105

23 Central Bank Facilities 25 Capital and reserves £’000 2021 2020 26 Employee benefits
During the year, the Bank has utilised facilities Share capital FVOCI reserve as at 26 2 Defined contribution pension plans Contents
provided by the Bank of England through its Sterling 31 December The defined contribution plan is a post-employment
Monetary Framework. These facilities enable either £’000 No. of shares FVOCI financial assets – (411) 29 benefit plan under which the company pays fixed
Contents
funding or off-balance sheet liquidity to be provided (000) net change during the year contributions into a separate entity and will have
on the security of designated pools of the Bank’s 2021 2020 2021 2020 no legal or constructive obligation to pay further
customer loans and advances and debt securities Related tax (90) (5) amounts. Obligations for contributions to defined
with the amount available based on the value of Ordinary shares FVOCI reserve as at (475) 26 contribution pension plans are recognised as an
the security given, subject, where appropriate, to a of £1 each 31 December expense in the income statement in the periods Strategic Report
haircut. Drawings under the Term Funding Scheme authorised, during which services are rendered by employees.
for SMEs (‘TFSME’) have a maturity of four years and issued and Convertible loan note interest payments
bear interest at BBR. The remaining maturity of the fully paid
The Bank operates a defined contribution Personal
Bank’s drawings is 45 months. As these drawings 1 January 44,955 44,955 44,955 44,955 The following convertible loan note interest Pension Scheme, which is provided by Royal
were provided at rates below those available payments were recognised as distributions to London Mutual Insurance Society Limited and
commercially, by a government agency, they were Shares issued – – – – owners during the year ended 31 December: contributes to the personal pension plans of certain
accounted for under IAS 20. Of the £78m drawn, during the year
employees. The pension cost for the year represents
£2.4m relates to deferred government assistance. £’000 2021 2020
31 December 44,955 44,955 44,955 44,955 the contributions payable by the Bank under these
Convertible loan note 1,283 1,440 arrangements and amounted to £1,023k (2020:
Drawings under the Funding for Lending Scheme interest 5.602 pence per £992k). There was an outstanding contribution due
(‘FLS’) were used to provide off balance sheet Perpetual loan note of £2k (2020: £23k) at the end of the year. Corporate Governance Statement
liquidity and formed part of the Bank’s High Quality subordinated (2020: 6.288 pence per
Liquid Assets (‘HQLA’). Fees were charged under contingent loan note)
the FLS at 0.25% of the market value of the liquidity convertible
drawn. The £57m outstanding drawings at 31 loan notes Total 1,283 1,440
December 2020 were repaid in 2021.
1 January 22,900 22,900 22,900 22,900
Further loan assets of the Bank have been pre- Authorised – – – –
positioned with the Bank of England for future use notes issued
in Sterling Monetary Schemes (note 28). during the year
Fully paid 22,900 22,900 22,900 22,900
£’000 2021 2020 notes as at 31
On Off- On Off- December
balance balance balance balance Independent Auditor’s Report
sheet sheet sheet sheet
The holders of ordinary shares are entitled to
TFSME 78,000 – – – receive dividends as declared from time to time and
are entitled to one vote per share at meetings of
FLS – – – 57,000
the Bank. During the year there were no new shares
Total 78,000 – – 57,000 authorised or issued (2020: nil). There were no new
issues of any convertible loan notes (2020: nil).
24 Other liabilities
Dividends on ordinary shares are recognised in
£’000 2021 2020 equity in the period in which they are approved by
shareholders. No ordinary share dividends were
Accruals 4,284 3,407
paid in 2021 (2020: nil). Financial Statements
Lease liability 2,056 2,202
Cambridgeshire Local Government Pension
Other creditors 940 1,302
Scheme holds the perpetual subordinated
Total 7,280 6,911 contingent convertible loan notes. Interest on
these securities is due and payable only at the sole
See Note 29 for more details on the lease liability.
discretion of the Board.
Fair value through other comprehensive income
reserve (FVOCI reserve)
The FVOCI reserve includes the cumulative net
change in the fair value of financial assets until
the investment is derecognised or impaired. The Notes to the Financial Statements
decrease in 2021 reflects the impact of the maturity
of one security and the purchase of a new longer-
term instrument.