DISCLOSURES ON COVID-19
The rampaging COVID-19 pandemic has impacted the global economy. For us COVID-19 will have an impact on Liquidity Risk, Loan Defaults (leading to an increase in non-performing loans requiring loan restructuring, payment moratorium, loan write-offs e.t.c), Interest Rate Risk, and Operational Risk.
To address the possible impact of the pandemic on our business operations, the Bank has implemented the following Business Continuity Plan:
- A remote and collaborative working system with licensed tools such as Teams and Office 365
- Digital staff monitoring for productivity enhancement
- Remote access to CCTVs for monitoring the Bank’s physical assets
- Staff support and communications via ALL channels
- Secured Remote (Cloud) servers for 24/7 support of all networks and application services
- Information security policies to enable segregation of duties and controls for both ISO27001 and regulatory compliance.
- Enhanced Customer Service and Help Desk (through the website and social media)
- Enhanced e-Banking Products and Services (with minimal disruption), with further planning for additional Mobile App service provision.
- Approval of the Moratorium Period for deserving customers.
- Palliative on late payment charges for loan defaulters for March – April 2020
- Staff Rota for effective staff social and physical distancing in the office.
- Provision of staff buses to minimize the impact of staff transportation by public bus
- Disinfecting our offices, enforcement of compliance with basic hygiene protocols by staff while in the office, provision of hand sanitizers, and infrared temperature monitors for customers as well as staff and maintenance of social and physical distancing for all stakeholders.
- Effective Information Security Management System to protect information assets of the Bank
- Communicating through various channels (including social media) timely updates to our staff, customers, and other stakeholders to raise awareness.
- Provision of adequate training for our staff on how to keep safe throughout the pandemic period.
- We have assessed our current bandwidth to support remote work. We also carry out periodic network stress testing to identify workarounds for critical tasks that are not executable from home.
- Reviewing relevant standard operating procedures and manuals and updating them, as necessary.
- All of the above have been incorporated into our existing business continuity plan to ensure the safety and wellbeing of all our staff members, customers, and other stakeholders, as well as to guarantee the continuity of our products and services.
- The pandemic is expected to impact liquidity risk faced by the Bank; however, we have a robust liquidity management framework and contingency funding plan that builds inadequate buffers to support liquidity run-off in a stress scenario. Besides, the liquidity ratio of the bank as of April 30, 2020; was 72% and Management projects that it will remain above the regulatory limit of 20% during the crisis period, while we continue monitoring the bank’s liquidity in line with our strategies.
- Our Risk Appetite for new credits shall below as the default rate is likely to rise. We shall however discretionally grant few mortgage loans to obligors whose risk ratings are considered low.