Republic Bank grants facilities to staff on concessionary terms – Management

The management of the Republic Bank has said in its 2019 annual report that the bank granted facilities to staff of the Bank on concessionary terms.

The Bank said it recognises such offerings as part of employee benefits on the basis that such facilities are granted to staff on the assumption of their continued future service to the Bank and not for their past service.

“The Bank’s Lending Rate adjusted for risk not associated with the Bank’s staff is applied to fair value such facilities".

“Any discount arising there from it is recognised as a prepaid staff benefit which is amortised through profit or loss over the shorter of the life of the related facilities and expected average remaining working lives of employees,” the report said.

The report further stated that the Group has a Provident Fund Scheme for all employees who have completed their probation period with the Bank.

Employees contribute 10% of their basic salary to the Fund whilst the Bank contributes 5%.

Obligations under the plan are limited to the relevant contributions which have been recognised in the financial statements and are settled on due dates to the Fund Manager.

For defined contribution schemes, the Bank recognizes contributions due in respect of the accounting period in profit or loss. Any contributions unpaid at the reporting date are included as a liability.

Short-term employee benefits, such as salaries, paid absences, and other benefits, are accounted for on an accruals basis over the period which employees have provided services in the year.

Bonuses are recognised to the extent that the Bank has a present obligation to its employees that can be measured reliably.

All expenses related to employee benefits are recognised in profit or loss in staff costs, which is included within operating expenses.