Page 16 - CCB_Annual Report_2022

16 Strategic Report 17

Stakeholder Description Engagement • Operational Resilience including the Other non‑financial disclosures
impact of Supplier/Outsourcing Risks;
The Bank has a moral, legal, and regulatory
Regulators The Bank is The Bank’s senior management are committed to fostering • Geopolitical headwinds and post duty to prevent, detect and deter financial
regulated by the open and honest engagement with its Regulators in line with the Brexit financial services equivalence crime and maintains a financial crime
PRA (Prudential cornerstone principle of the UK regulatory environment. The CEO, arrangements, trade negotiations, and framework. This framework is supported
Regulation CFO and CRO meet regularly with the Bank’s PRA Supervisory team the effects on UK business confidence; and reinforced by the Bank’s systems and
Authority) and FCA through the framework of ‘proactive engagement and continuous and behaviours which put the customer at
(Financial Conduct assessment’ meetings and report on key themes discussed through the heart of every interaction. The Bank
Authority) committee and Board meetings as appropriate. The CRO reports • The increased focus on climate promotes an environment that protects its
to the Board Risk & Compliance Committee on material matters change risk. customers, employees, and communities
of regulatory liaison, and the Bank’s assessment of the quality of The number of newly launched niche from financial crime, and continues to
the relationship with each Regulator. In addition, the Chair, Senior specialist banks, together with an increase invest in its Anti-Money Laundering (AML)
Independent Director and Chair of Risk maintain a direct relationship in the non-banking participation in the asset and Know Your Customer (KYC) financial
with the Bank’s Regulators on key themes as appropriate. finance market, has over the past few years control system enhancements. The
also had a significant effect on lending Bank’s compliance with the requirements
Communities The geographic The Board support the Bank’s membership of several local trade margins. This has inevitably continued to of the financial crime framework is
locations in which bodies such as Chamber of Commerce and Business Networking put pressure on the Bank’s gross lending monitored through ongoing control
the Bank has groups in the regions in which it operates, including sponsoring an margins. We continue to ensure that our testing, assurance, internal audit, and the
offices, employees, Environmental Impact award. customers enjoy rates that compare well provision of management information
and customers with those that are currently on offer in the at senior governance committees. The
In consideration of the challenges on charities following the impact of
Covid-19 and the cost of living crisis, the Board has chosen to maintain market. Margin compression is expected Bank’s Modern Slavery Statement (which
the Bank’s current level of activity and support for local communities. to continue, although we remain confident is available on our website) sets out the
Further details of the Bank’s activities in local communities is set out that following the expansion of our policies we apply and actions we take to
on page 20 – Supporting our Local Communities. geographic footprint across the country, ensure that our employees and customers
and investing in our relationships with our are treated with dignity and respect. This
The Board receives regular updates on the Bank’s delivery of these broker introducers, we will meet our growth includes raising awareness of issues that
activities and how the Bank supports the local community. appetite at margins commensurate with the could put the people the Bank comes into
Board’s credit risk appetite. contact with at risks such as vulnerability
and exploitation. The statement also
explains how we ensure that the Bank’s
values are applied within our supply chain
Decisions made during the year The Bank’s future plans have been including the due diligence we carry out
influenced by the following trends
The Board reaffirmed the Bank’s current and risks: on our suppliers.
strategy, business structure, dividend
policy and capital structure during 2022. • Macroeconomic environment (bank
The Bank’s strategy has remained broadly base rate and property valuations) and
unchanged since it started trading in 2012 the impact of Covid-19 and the Ukraine
and has resulted in balance sheet assets conflict on the UK economy,
exceeding £1bn, delivering profit before • Credit cycle impacts closely aligned
tax in excess of £28.5m pa.
to the above and the risk of material
The Board has assessed the future property price erosion;
operating environment for the business • Changes in competition and
and expects continued growth in profits, market demand;
and ongoing investment in people and
systems. The Bank’s strategic objectives • Challenges with supply chains
remain unchanged. The Bank plans to and cross-border restrictions
continue to grow and bring its products and the consequential impact on Strong capital
and services to a wider geographical trading businesses;
footprint and expand its lending activities • Liquidity costs, greater commoditisation, base is a source of
into new asset classes where the existing and the continued rise in deposit brokers
capacity and capability of the Bank in both the retail and SME markets; competitive advantage
can be brought to bear, realising niche
opportunities in markets that offer • Long term trends in technology
earnings at a level accretive to those investment including IT data security
achieved in the core businesses. and cyber security threats;