Komplett Bank annual report 2019

Services from external service providers were used extensively in the Bank’s operations. These services are monitored in line with established guidelines for outsourcing. The Bank strives for a high degree of automated, effective and scalable processes that safeguard the needs of customers and the Bank in a satisfactory and reliable manner. Liquidity risk The Board has adopted a financial policy, which includes guide- lines for liquidity management, risk limits, monitoring and reporting within this area. The guidelines are discussed by the Board at least annually. The Board receives regular reports on developments in the Bank’s liquidity risk. The Bank’s objective is to have a low liquidity risk. Liquidity risk is regularly monitored, and the Bank’s investments are made in such a manner that the liquidity risk is kept at a low level. The Bank’s investments principally consist of deposits in other financial institutions and interest-bearing securities with good liquidity and low counterparty risk. The liquidity risk was considered low during 2019. Loans to cus- tomers have been financed using paid-in equity, retained earnings, subordinated bonds and deposits from the Bank’s customers. The Bank issued a senior unsecured bond in 2017 which was fully repaid to the bond holders as the bond matured in July 2019. The liquidity coverage ratio (LCR) requirement that entered into force on 31 December 2015 has been complied with. The Bank had an LCR of 716% as of 31 December 2019. Market risk The Board-approved finance policy also covers guidelines for market risk (including interest rate and currency risk), risk limits, monitoring and reporting in the area. The guidelines are discussed by the Board at least annually. The Board receives regular reports on developments in the Bank’s market risk. The Bank’s objective is to have low market risk. Market risk is regularly monitored, and the Bank’s investments made in such a manner that the market risk is maintained low. The Bank’s invest- ments primarily consist of deposits in other financial institutions and interest-bearing securities with short- term fixed interest rates and good liquidity. In 2019, the Bank made purchases in foreign currencies and has loans in the Finnish and Swedish markets, in addition to Norway. Deposits are mainly from the Norwegian and German markets. In January 2020, Komplett Bank launched deposit accounts in Sweden. Therefore, as of 31 December 2019, the Bank had loans to customers in NOK, EUR and SEK and offered deposits to customers in NOK and EUR. The Bank’s net foreign exchange exposure is kept low and is controlled through a multi-currency facility in another bank. Net loans to Finnish and Swedish custom- ers were respectively EUR 246.7 million and SEK 1,309.0 million, equivalent to NOK 2,433.1 million and NOK 1,236.0 million as of 31 December 2019. The Bank’s open net currency exposure was EUR 7.7 million and SEK 32.6 million as at 31 December 2019. The Bank does not offer fixed term interest rates on any of its products other than fixed-term deposits in Germany. Working environment, gender equality and non-discrimination The Bank’s Board and management strive to promote gender equality. At the start of the year, the Bank employed 89 persons, compared to 140 at year end. At the end of the year, 90 employees were men and 50 were women. There were four men and three women on the Board of Directors. One of the Bank’s objectives is to ensure that both genders are represented in all management bodies. The Bank’s share option programme, described in greater detail in Note 14 of the annual financial statements, and a bonus pro- gramme that includes all employees, are considered good incen- tives for enhancing and aligning the mutual interests of the Bank’s employees with those of the company and the shareholders. The programmes are considered to be an important motivating factor for employee work efforts and ongoing workplace assessments, while also contributing to employee retention. There are favour- able pension and employer’s liability insurance plans in place. Total sick leave in 2019 was 3.8%, down from 4.8% in 2018. The Bank has implemented various activities and welfare initiatives to promote an active social environment, well-being at the workplace and to prevent and reduce sick leave. One of the initiatives offered is physical exercise during working hours. The Bank expands its rented premises when needed to adapt to growth and to further improve working conditions. The Bank has established guidelines to ensure that no discrimination or harassment occurs based on ethnicity, national origin, descent, skin colour, language, religion or beliefs in matters such as recruit- ment and pay. The same applies to gender, age, sexual orientation, political views or disabilities. No breaches of the above established guidelines have been reported or identified. There have also been no reports of severe injuries or accidents at the workplace. The Bank has established both an internal and an external whistleblowing routine to facilitate easy and a low threshold for reporting any irregularities. The routine shall safeguard the con- siderations both of the whistleblower and the person(s) reported on and is readily available for all the Bank’s employees. Employees 28 Board of Directors’ Report