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58 Corporate Governance Statement 59
Contents
Contents
Environmental information and, cognisant of the capital and funding Statement of Directors’ Act 2006. They are responsible for such
resources, they have a reasonable expectation internal control as they determine is
The Bank is committed to being a that the Bank will be able to continue in responsibilities in respect necessary to enable the preparation
responsible user of resources and operation and meet its liabilities as they fall of financial statements that are free Strategic Report
continues to consider ways it can reduce its due in the period to December 2024. of the financial statements from material misstatement, whether
environmental impact.
due to fraud or error, and have general
In making this assessment, the Directors The directors are responsible for preparing responsibility for taking such steps as are
The Bank’s environmental and emissions have considered a wide range of information. the Annual Report and the financial reasonably open to them to safeguard
information is reported on page 17.
Central to this assessment is the detailed statements in accordance with applicable the assets of the Company and to prevent
2022 business plan within the Bank’s 3 Year law and regulations. and detect fraud and other irregularities.
Going concern
Strategic Plan. The Board have continued
The Directors recognise their responsibility to conduct a number of internal capital Company law requires the directors to Under applicable law and regulations,
to assess the Bank’s ability to continue as adequacy and liquidity adequacy stress tests prepare financial statements for each the directors are also responsible for
a going concern, for a period of at least on the operating model, most particularly financial year. Under that law they preparing a Strategic Report and a Corporate Governance Statement
12 months from the date the financial those effecting the Bank’s property lending have elected to prepare the financial Directors’ Report that complies with
statements are approved. The Directors’ concentrations to provide insights into the statements in accordance with UK-adopted that law and those regulations.
assessment of going concern is integrated Bank’s financial stability. The stress testing international accounting standards and
with the assessment of the viability of the analysis helps management understand applicable law. The directors are responsible for the
Bank. The Directors, having considered the nature and extent of vulnerabilities to maintenance and integrity of the corporate
the matters noted in Note 4, are satisfied which the Bank is exposed. As a result, Under company law the directors must not and financial information included on
that adequate funding, liquidity, and capital the Directors remain confident that the approve the financial statements unless they the Company’s website. Legislation in
resources will be in place to allow the Bank holds sufficient capital to withstand are satisfied that they give a true and fair the UK governing the preparation and
financial statements to continue to be severe contractions in both the number of view of the state of affairs of the Company dissemination of financial statements may
prepared on a going concern basis, and are transactions in the market, and a significant and of its profit or loss for that period. In differ from legislation in other jurisdictions.
not aware of any material uncertainties that fall in capital values across both residential preparing the financial statements, the
may cast doubt upon the Bank’s ability to and commercial property, as well as the directors are required to: Fair, balanced, and understandable
continue as a going concern. capacity to absorb a material increase in The Board has ultimate responsibility for
impairment provision. ∞ select suitable accounting policies and Independent Auditor’s Report
Viability statement then apply them consistently; reviewing and approving the annual report.
In voluntarily adopting the principles of the
In addition, the Directors have assessed the
As more fully explained in the corporate key strategic risks that could threaten the ∞ make judgements and estimates that are Code that are considered appropriate for
governance statement on pages 42 - 72, Bank’s prospects and business model more reasonable, relevant and reliable; the Bank, the directors confirm that they
the Bank has committed to voluntarily broadly. Access to required talent remains a consider that the annual report, taken as a
adopt the Code which includes provisions challenge, although during the year we have ∞ state whether they have been prepared whole, is fair, balanced, and understandable
that require the Directors to confirm been able to attract the services of specialist in accordance with UK-adopted and provides the information necessary for
that the Bank will be able to continue in skills in Risk, Compliance and Finance. The international accounting standards; the shareholders to assess the company’s
operation, and to meet its financial liabilities Board continues to review its organisational position, performance, business model and
as they fall due over a specified period structure and succession plans for both non- ∞ assess the Company’s ability to continue strategy. When arriving at this conclusion
taking account of the current position, executive and executive posts and is confident the Board was assisted by a number of
and principal risks of the Bank. as a going concern, disclosing, as processes including: Financial Statements
that it has the skills and capabilities to support applicable, matters related to going
the business through 2022 and beyond. concern; and
The Directors have assessed the Bank’s The annual report is drafted and
viability to December 2024. Key capital comprehensively reviewed by appropriate
and leverage ratios have been forecast, ∞ use the going concern basis of senior management with overall
and regulatory and internal stress testing accounting unless they either intend coordination by the CFO.
of the Bank’s profit, capital and funding The Bank is committed to liquidate the Company or to cease
forecasts has been completed. In doing operations, or have no realistic alternative A verification process is undertaken to
so, the Directors considered the increasing to being a responsible but to do so. ensure factual accuracy, with additional
uncertainty of forecasts in the outer years review of compliance with content and
of the planning period from developments user of resources and The directors are responsible for keeping disclosure requirements by the Bank’s
in the economic environment, competition, adequate accounting records that General Counsel; and
and regulatory developments. The Directors continues to consider are sufficient to show and explain the Notes to the Financial Statements
confirm that they have carried out a robust Company’s transactions and disclose The annual report is reviewed by the Bank
assessment of the emerging and principal ways it can reduce its with reasonable accuracy at any time the senior management including the CFO,
risks facing the Bank, the procedures in financial position of the Company and CRO, the Bank’s Executive Committee and
place to identify emerging risks, and how environmental impact. enable them to ensure that its financial the Audit Committee prior to approval by
statements comply with the Companies
such risks are managed or mitigated, the Board.