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forecasts has been completed. In doing concentrations to provide insights into the
so, the Directors considered the increasing Bank’s financial stability. The stress testing
uncertainty of forecasts in the outer years analysis helps Management understand
of the planning period from developments the nature and extent of vulnerabilities to
in the economic environment, competition, which the Bank is exposed. As a result,
and regulatory developments. The the Directors remain confident that the
Directors confirm that they have carried Bank holds sufficient capital to withstand
out a robust assessment of the emerging severe contractions in both the number of
and principal risks facing the Bank, the transactions in the market, and a significant
procedures in place to identify emerging fall in capital values across both residential
risks, and how such risks are managed or and commercial property, as well as the
mitigated, and, cognisant of the capital and capacity to absorb a material increase in
funding resources, they have a reasonable impairment provision.
expectation that the Bank will be able In addition, the Directors have assessed
to continue in operation and meet its the key strategic risks that could threaten the
liabilities as they fall due in the period to Bank’s prospects and business model more
December 2026. broadly. Access to required talent remains a
In making this assessment, the Directors challenge, although during the year we have
has considered a wide range of information. been able to attract the services of specialist
Central to this assessment is the detailed skills in Risk, Compliance and Finance. The
2024 business plan within the Bank’s 3 Year Board continues to review its organisational
Strategic Plan. The Board have continued to structure and succession plans for both
conduct several internal capital adequacy non‑executive and executive posts and
and liquidity adequacy stress tests on the is confident that it has the skills and
operating model, most particularly those capabilities to support the business through
effecting the Bank’s property lending 2024 and beyond.