Page 117 - 86395_CCB - 2024 Annual Report (web)

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The table below analyses the Bank’s contractual financial liabilities including any accrued interest up to the point of
maturity as at 31 December. The contractual date is the earliest repayment date of the deposits.

Contractual maturity analysis at Due within Due after more No contractual
31 December 2024 £’000 one year than one year maturity Total
Customer accounts 1,063,556 244,376 – 1,307,932
Central Bank facilities (TFSME) 57,483 – – 57,483
Subordinated debt liability 575 6,727 – 7,302

Lease liabilities 248 1,545 – 1,793
Other liabilities and accruals – – 7,046 7,046
Total liabilities 1,121,862 252,648 7,046 1,381,556

Contractual maturity analysis at Due within Due after more No contractual
31 December 2023 £’000 one year than one year maturity Total

Customer accounts 963,610 222,964 – 1,186,574
Central Bank facilities (TFSME) 913 67,492 – 68,405
Subordinated debt liability – 4,751 – 4,751
Lease liabilities 248 1,671 – 1,919

Derivatives financial liabilities 2 650 – 652
Other liabilities and accruals 689 – 7,709 8,398
Total liabilities 965,462 297,528 7,709 1,270,699

The following table sets outs the Bank’s liquid assets: – Market Risk

Market Risk is the risk that changes in market
£’000 2024 2023
rates negatively impact the earnings or market
Balances with Central banks 292,850 302,473 value of the Bank’s assets or liabilities. All the
Bank’s exposure to Market Risk relates to non‑
Loans and advances to banks 12,139 10,420 trading portfolios.

Debt securities 65,137 47,409 The principal risk to which non‑trading portfolios
Total 370,126 360,302 are exposed is the risk of loss from fluctuations
in the future cash flows or fair values of financial
instruments because of a change in market
– Asset encumbrance
interest rates.
The Bank’s assets can be used to support collateral – Interest Rate Risk
requirements for central bank operations, or third
party repurchase transactions. Assets that have Interest Rate Risk is the risk of loss arising from
been set aside for such purposes are classified adverse movements in market interest rates. Interest
as ‘encumbered assets’ and cannot be used for Rate Risk is the main Market Risk faced by the Bank,
other purposes. All other assets are defined as and primarily arises from loans and deposits to
‘unencumbered assets’. These assets are readily customers, liquidity holdings and debt securities.
available to secure funding or meet collateral Oversight of Interest Rate Risk is monitored by ALCO
requirements and are not subject to any restrictions. monthly and is managed using appropriate financial
instruments, including derivatives, with established
The Bank drew £78m of funding in cash under the risk limits, reporting lines, mandates and other
Bank of England’s TFSME Scheme (Term Funding control procedures in place.
Scheme with additional incentives for SME) in 2021,
the Bank has repaid £23m of these drawings. The Interest Rate Risk consists of Asset‑Liability Gap Risk
Bank has a total of £182m (2023: £217m) of loans and Basis Risk.
and debt securities which are available as collateral
– Asset‑Liability Gap Risk
to support drawings under the Bank of England’s
Sterling Monetary Framework (SMF) facilities. Where possible the Bank seeks to match the
interest rate structure of assets with liabilities,
creating a natural hedge. Where this is not
possible the Bank will enter into interest rate swap