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 guidelines for liquidity management, risk limits, monitoring and reporting within this area. The guidelines are reviewed by the Board at least once a year. The Board receives regular reports on developments in the Bank’s liquidity risk. The Bank’s objective is to have a low liquidity risk. The 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 2021. Loans to customers have been financed using paid-in equity, retained earnings, subordinated bonds and deposits from the Bank’s customers. The liquidity coverage ratio (LCR) requirement that entered into force on 31 December 2015 has been complied with, and with a good margin. The Bank had an LCR of 386% as at 31 December 2021, compared to a regulatory requirement of 100%. The Bank’s liquidity has been strengthened during 2021. 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 this area. The guidelines are approved by the Board at least once a year. The Board receives regular reports on developments in the Bank’s market risk. The Bank’s objective is to be exposed to a low market risk. Market risk is regularly monitored, and the Bank’s investments made in such a manner that a low market risk is maintained. The Bank’s investments primarily consist of deposits in other financial institutions and interest-bearing securities with short-term fixed interest rates and good liquidity. In 2021, the Bank made purchases in foreign currencies and has loans in the Finnish and Swedish markets, in addition to Norway. Deposits originate from customers in the Norwegian, Swedish and German markets. The Bank’s net currency exposure is kept low and is controlled by a multi-currency facility with a correspondent bank. Net loans to Finnish and Swedish customers were respectively EUR 182.4 million and SEK 1,559.9 million, equivalent to NOK 1,828.4 million and NOK 1,469.2 million as at 31 December 2021. The Bank’s open net currency exposure was EUR 0.8 million and SEK 0.3 million as at 31 December 2021. The Bank does not offer fixed-term interest rates on any of its products other than fixed-term deposits in Germany. Organisation, environment and social responsibility At the start of the year, the Bank employed 152 persons, compared to 145 at year end. 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. The Bank has established a working environment committee to ensure that the working environment maintain a satisfactory level in the Bank. Total sick leave in 2021 was 4.1%, up from 3.0% in 2020. As a response to the outbreak of Covid-19, Komplett Bank implemented measures to safeguard employees and their families in line with Government recommendations. 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 recruitment and pay. The same applies to gender, age, sexual orientation, political views or disabilities. For more information, please find the separate statement on ESG in this annual report for 2021. 36 Board of Directors’ Report
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