ttb 56-1 One Report 2021 (EN)

Context of Emerging Risks Impact and Mitigation Pandemic The COVID-19 pandemic could potentially be observed as an isolated incident; however, evidence shows that there has been an increase in both the number and diversity of epidemic events over the past few decades. These events can create short-term and long-term threats towards economic and societal well-being. Measures taken to contain these events could bring about an economic downturn, induce political instability, and prolong existing, severe economic recession. • • • • The Bank continues to assist customers in need while navigating moral hazards and managing the overall asset quality of the Bank. Prior to the pandemic, the Bank’s risk management framework was already well-positioned to deal with a wide variety of business risks as well as ensure business continuity. In 2021, the Bank has taken steps to improve the management of non-financial risks with predefined risk appetite. We perform regular monitoring and report to appropriated committees in order to ensure sufficient attention, care and action taken. The Bank maintains strong liquidity and capital to maintain normal operations and to absorb volatility of unexpected events in the near term. 115 Form 56-1 One Report 2021

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