Corporate Governance

The Bank has a strong corporate governance policy that is formulated at the Board level, upon recommendation by the Committee on Corporate Governance. This policy is based on the guidelines of the BSP and the SEC. On an annual basis, the Board does a self appraisal of its performance based on the principles of transparency and professionalism, accountability, fairness/equity.

In line with good corporate governance, the Bank has adopted fit and proper standards on key personnel
taking into consideration their integrity, technical expertise, education, diligence, and experience or
training. Corporate governance rules/principles were established to ensure that interest of the stakeholders are always taken into account; that directors, officers and employees conduct business in a safe and sound manner; and that transactions entered into between the Bank and related interests are conducted at arm’s length and in the regular course of business.

The Bank has a sufficient number of independent directors that gives the assurance of independent
views and perspective. Likewise, the independent functions of internal audit, the compliance office, and
the risk management unit lend comfort to stakeholders, including the regulators, of bank’s commitment to the principles and practices of good corporate governance.