Liquidity risk is the risk that the Bank is unable to meet its obligations as they fall due.
Risk appetite
The Bank will maintain a sufficient amount and quality of liquid resources to meet its liabilities as they fall due under 
a range of severe but plausible stress scenarios, and support growth objectives, satisfying minimum regulatory 
requirements at all times.
Risk Profile
The Bank’s business is inherently low in liquidity risk, since it does not perform maturity transformation. The material 
liquidity risks the Bank faces are: 
• Credit card outflows exceed expectations;
• Loan prepayments fall short of expectations;
• Loan delinquencies exceed expectations; or
• Rollover rates of maturing deposits fall short of expectations.
Retail deposits were predominantly of fixed term nature as at 31 December 2020 and did not constitute a material 
liquidity risk.
Liquidity risk management
Liquidity resources are actively managed to ensure they meet net outflow requirements, and minimum standards 
for asset quality. Short, medium and long-term cash flow forecasts are produced, and actual flows monitored, to 
inform the level of liquidity resources that must be held.
Forward-looking assessments of liquidity resources and requirements are produced, summarised in the ILAAP 
document and agreed at Board level. The ILAAP requires the Bank to consider all material liquidity risks in detail 
and to document an analysis of each key liquidity risk driver and to set a liquidity risk appetite against each of these 
drivers. L