Page 120 - CCB_Annual Report_2022

120 Notes to the Financial Statements 121

The Bank continues to pre-position eligible loan collateral with the Bank of England to enable it to access, The table below analyses the Bank’s contractual financial liabilities including any accrued interest up to the point
if required, the Bank of England’s Sterling Monetary Framework facilities, including the Discount Window of maturity as at 31 December. The contractual date is the earliest repayment date of the deposits.
Facility (DWF).
The Bank monitors its liquidity risk using several metrics including the liquidity coverage ratio (LCR), its loan Contractual maturity analysis at Due within Due after more No contractual
to deposits ratio (LDR) and an internal survival days metric. The Bank’s LCR at 31 December 2022 was 361% 31 December 2022 one year than one year maturity Total
(2021: 287%) and the LDR was 94% (2021: 95%).
Customer accounts 954,842 165,213 – 1,120,055
The table below analyses the Bank’s contractual financial assets and liabilities. Customer deposits include any Central Bank facilities (TFSME) – 85,508 – 85,508
accrued interest as at 31 December. The contractual date is the earliest repayment date of the deposits.
Lease liabilities – 1,995 – 1,995

Contractual maturity analysis at Derivatives financial liabilities – 1,010 – 1,010
31 December 2022 Due within Due after more No contractual Other liabilities 326 – 7,112 7,438
£’000 one year than one year maturity Total
Total liabilities 955,168 253,726 7,112 1,216,006
Assets
Cash and balances at central banks 286,680 – – 286,680
Loans and advances to banks 13,931 – – 13,931 Contractual maturity analysis at Due within Due after more No contractual
31 December 2021 one year than one year maturity Total
Debt Securities 19,699 10,713 – 30,412
Customer accounts 880,586 153,039 – 1,033,625
Loans and advances to customers 92,512 945,198 – 1,037,710
Central Bank facilities (TFSME) – 79,371 – 79,371
Other assets – – 7,812 7,812
Lease liabilities 104 1,952 – 2,056
Total Assets 412,822 955,911 7,812 1,376,545
Derivatives financial liabilities – 254 – 254
Liabilities
Other liabilities – – 5,224 5,224
Customers’ accounts 948,438 154,818 – 1,103,256
Total liabilities 880,690 234,616 5,224 1,120,530
Central Bank facilities (TFSME) – 78,000 – 78,000

Lease liabilities – 1,995 – 1,995
Derivative financial liabilities – 1,010 – 1,010
Other Liabilities 326 – 7,112 7,438
Total liabilities 948,764 235,823 7,112 1,191,699
The following table sets outs the Bank’s (2021: £188m) of loans and debt securities which
liquid assets: are available as collateral to support drawings under
the Bank of England’s Sterling Monetary Framework
Contractual maturity analysis at £’000 2022 2021 (SMF) facilities.
31 December 2021 Due within Due after more No contractual – Market risk
£’000 one year than one year maturity Total Balances with Central banks 286,680 240,158
Market risk is the risk that changes in market rates
Assets Loans and advances to banks 13,931 12,293
negatively impact the earnings or market value of
Cash and balances at central banks 240,158 – – 240,158 Debt securities 30,412 37,137 the Bank’s assets or liabilities. All the Bank’s exposure
to market risk relates to non-trading portfolios.
Loans and advances to banks 12,293 – – 12,293 Total 331,023 289,588
The principal risk to which non-trading portfolios
Debt Securities – 37,137 – 37,137
– Asset encumbrance are exposed is the risk of loss from fluctuations
Loans and advances to customers 100,830 877,004 – 977,834 in the future cash flows or fair values of financial
The Bank’s assets can be used to support instruments because of a change in market
Other assets – – 7,449 7,449
collateral requirements for central bank interest rates.
Total Assets 353,281 914,141 7,449 1,274,871 operations, or third party repurchase – Interest rate risk
transactions. Assets that have been set aside for
Liabilities
such purposes are classified as ‘encumbered Interest rate risk is the risk of loss arising from
Customers’ accounts 878,320 147,200 – 1,025,520 assets’ and cannot be used for other purposes. adverse movements in market interest rates.
All other assets are defined as ‘unencumbered Interest rate risk is the main market risk faced
Central Bank facilities (TFSME) – 78,000 – 78,000
assets’. These assets are readily available to by the Bank, and primarily arises from loans and
Lease liabilities – 2,056 – 2,056 secure funding or meet collateral requirements deposits to customers, liquidity holdings and
and are not subject to any restrictions. debt securities. Oversight of interest rate risk is
Derivative financial liabilities – 254 – 254 monitored by ALCO monthly and is managed
The Bank drew £78m of funding in cash under
Other Liabilities – – 5,224 5,224 through the use of appropriate financial instruments,
the Bank of England’s TFSME scheme (Term
including derivatives, with established risk limits,
Total liabilities 878,320 227,510 5,224 1,111,054 Funding Scheme with additional incentives for reporting lines, mandates and other control
SME) in 2021. The Bank has a total of £145m
procedures in place.