Note 17 Liquidity and interest rate risk The Board of Directors has established guidelines that sets the limit for maximum interest rate risk. Monitoring and reporting liquidity and interest rate risk happens continuously according to provided instructions. Liquidity risk The liquidity risk of the bank arises from or results from the maturity profile of the Bank’s assets and liabilities. Below follows an overview of different time intervals as to when the Bank’s assets and liabilities mature. LIQUIDITY RISK AS AT 31 DECEMBER 2021 Amounts in NOK million No defined term < 3 months 3 months < 1 year 1 year < 5 year Over 5 year Total Loans and deposits with credit institutions 1,301.8 - - - - 1,301.8 Loans to customers 6,172.3 0.6 3.7 2,805.7 - 8,982.3 Certificates and bonds 883.0 - - - - 883.0 Other receivables - 278.0 - - - 278.0 Total assets 8,357.1 278.5 3.7 2,805.7 - 11,445.1 Deposits from customers 7,933.8 80.0 50.6 - - 8,064.4 Other debt - 38.6 - - - 38.6 Subordinated loans - 1.0 2.9 15.5 81.4 100.8 Total liabilities 7,933.8 119.6 53.5 15.5 81.4 8,203.7 LIQUIDITY RISK AS AT 31 DECEMBER 2020 Amounts in NOK million No defined term < 3 months 3 months < 1 year 1 year < 5 year Over 5 year Total Loans and deposits with credit institutions 1,204.2 - - - - 1,204.2 Loans to customers 5,495.1 0.0 164.5 2,839.3 - 8,498.9 Certificates and bonds 1,555.4 26.1 47.5 219.0 - 1,848.0 Other receivables - - - - - - Total assets 8,254.7 26.1 212.1 3,058.3 - 11,551.1 Deposits from customers 8,374.4 12.6 497.7 110.6 - 8,995.3 Other debt - 27.5 - - - 27.5 Subordinated loans - 0.5 2.7 84.7 - 87.9 Total liabilities 8,374.4 40.6 500.4 195.2 - 9,110.6 Loans to customers, deposits from customers and subordinated loans include expected interests in the liquidity risk overview above. The Bank had no financial instruments that were not recognised as at 31 December 2021 nor as at 31 December 2020. See also the Report from the Board of Directors for further information and discussion of the Bank’s liquidity risk. Komplett Bank / Annual Report 2021 73
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