The Bank’s corporate governance policy is directed not only towards the regulatory and legal requirements, but also towards adherence to best business practices, transparency, and disclosure to the stakeholders. The Bank has established a culture of best practices in corporate governance. The Bank’s corporate governance framework is based on an effective independent Board that is not involved in day-to-day management, and the constitutions of different Board committees with independent directors to oversee critical issues.
The Bank has adopted three core principles of corporate governance, i.e. integrity, transparency, and fairness. Good corporate governance has been an integral part of the Bank’s policy in order to safeguard the interest of its shareholders and stakeholders, and for providing the highest level of service to its customers.
During the review period, the Bank has formulated and implemented “Corporate Governance Policy 2015” which shall further strengthen the Bank’s corporate governance practices and values across all levels and activities of the Bank. The main objectives of the policy are as follows:
- To lay down a framework for achieving the vision, mission, and objectives of the Bank in an effective and efficient manner,
- To lay down a foundation for sound organizational development, planning succession, control, and performance,
- To lay down a comprehensive framework that instills, monitors, reviews, and reacts to pertinent corporate governance issues so as to protect the legitimate interest of all the stakeholders,
- To ensure that all activities of the Bank are carried out in due compliance with applicable acts, regulations, and directives, and
- To lay down a broad framework for formulation of other policies, manuals, and guidelines of the Bank.
In line with Nepal Rastra Bank’s direction, a separate Corporate Governance Unit comprising of following members has been formed:
|Deputy General Manager||Coordinator|
|Chief Finance Officer||Member|
|Chief Risk Officer||Member|
|Head, Human Resource||Member|
|Chief Operating Officer||Member|
|Manager, Internal Audit||Member|
The unit shall monitor corporate governance being implemented on a monthly basis, and the Terms of Reference (TOR) of the unit shall include the following:
- To regularly monitor and ensure that the corporate governance status of the Bank is in compliance with Nepal Rastra Bank’s Unified Directive,
- To appraise the status of corporate governance to senior management, Audit Committee, and the Board,
- To ensure that the directions/instructions given by Nepal Rastra Bank from time to time are duly complied with,
- To ensure that all the employees of the Bank are fully aware of corporate governance requirements, and the Bank’s code of conduct from time to time for the purpose, and
- Any other functions as entrusted upon the committee from time to time.