market
risk
were
actively
managed
so
that
their
level
remained
within
the
Bank’s
limits.
The
Bank
has
a
currency-balanced
balance
sheet
structure,
inter
alia
characterised
by
a
low
share
of
foreign
currency receivables in total mortgage receivables;
•
maintaining
a
good
liquidity
position.
As
at
2021
yearend,
the
loan-to-deposit
ratio
stood
at
85.9%.
The
Group’s
strong
liquidity
position
is
due
to
one
of
the
largest
–
and
steadily
growing
–
stable
household deposit bases among Polish banks;
•
managing
effectively
operational
risk,
including
model
risk,
meeting
market
standards
in
this
regard,
and
•
having
adequate
level
of
own
funds
to
meet
the
supervisory
requirements.
In
December
2021,
the
total
capital
ratio
of
the
ING
Bank
Śląski
S.A.
Group
was
15.08%
and
the
Tier
1
capital
ratio
was
13.47%.
In
2021,
ING
Bank
Śląski
S.A.
also
improved
its
model
risk
management
process,
taking
into
account
the
recommendations
made
by
the
PFSA
during
the
inspection
carried
out
at
the
beginning
of
2021.
In
addition,
the
Bank’s
internal
control
system
sufficiently
adequately
and
effectively
protects
the
Bank
against
unexpected
events
as
regards
granted
financing,
non-financial
risk,
market
risk,
liquidity
or
capital
adequacy.
This
system
covers
all
the
Bank’s
business
units
and
all
three
lines
of
defence.
For
the
purpose
of
compliance
with
laws,
supervisory
requirements,
internal
regulations
and
market
standards,
decisive
corrective
actions
were
planned
and
taken
for
the
weaknesses
identified.
The
Bank
has
a
formalised
path
for
reporting
the
scale
and
nature
of
identified
irregularities
and
the
status
of
corrective
actions
and
disciplinary
measures
taken.
Corrective
and
disciplinary
actions
are
implemented
in
a
timely
and
effective
manner.
The
independence
of
the
Internal
Audit
Department
and
the
Centre
of
Expertise
–
Compliance
is
ensured
as
well
as
adequate
human
resources
necessary
for
the
effective
performance
of
tasks by these units.
Despite
the
expected
robust
rebound
in
economic
growth
and
increasing
COVID-19
vaccination
rates,
2021
is
still
largely
influenced
by
pandemic
developments
in
Poland
and
globally.
Therefore,
the
Supervisory
Board
is
of
the
opinion
that
the
Bank
should
continue
to
focus
on
the
measures
that
enhance
the
safety
of
the
Bank,
its
employees
and
its
clients
and
ensure
accessibility
and
competitiveness
in
terms of products and client service quality, such as:
•
adequate
capital
management
to
ensure
safe
credit
growth
as
well
as
to
meet
all
current
and
future
regulatory requirements;
•
further
development
of
the
product
range
and
electronic
service
channels.
Under
the
conditions
of
ongoing
pandemic
and
intense
competition,
the
opportunity
for
revenue
growth
lies
in
expanding
the
client
base
by
winning
new
clients
and
increasing
the
loyalty
of
existing
clients.
Such
policies
lead
to
higher client balances and increased transaction flows;
•
increasing
lending,
while
maintaining
a
prudent
assessment
of
client
risk.
This
approach
will
contribute to maintaining the high quality of the portfolio and to increasing interest income;
