To provide additional reassurance following some media coverage, the Board of CAF has agreed to provide CAF Bank with £15m of subordinated debt with a 6-year maturity.

CAF Bank’s principal activity involves providing Charities with Deposit Accounts. To ensure a high level of liquidity on these deposits, CAF bank places monies with the Bank of England and purchases a wide range of bonds issued by high quality counterparties. These are disclosed in the Bank’s recently published financial statements. As at the Bank’s year end on 30 April 2023, of this portfolio of bonds, the majority are held in AAA rated bonds issued by multilateral agencies and the maturity profile of these bonds is shown on page 43 of the Bank’s Annual Report. CAF Bank intends to hold these bonds to maturity as part of its normal treasury management operations.

Rising interest rates have been supportive of the CAF Bank business model as can be seen from the fact that CAF Bank made a profit before tax of £10.4m in the last financial year, up from £2.03m in the preceding year.