Legal insurance

Corporate Governance
Presentation Presented by :
Anmol
Ayushma
Sarishma
Sangam
 Corporate Governance
Corporate governance is a set of regulations, policies, and procedures
that control the functioning of an organization. It defines the Board of
Directors role, its composition, the role of Chairman, the role of CEO,
risk management strategies, control mechanisms, and action plans.
 Four Pillar of Corporate Governance:
I. Accountability
II. Transparency
III. Responsibility
IV.  Fairness
Corporate Governance Structure

The key players in the corporate

governance framework are as follows:
Principles of
corporate
governance
These principles support the Board’s aim of promoting strong, viable, competitive
corporations and are in line with the Group’s core values of integrity, professionalism,
customer focus, respect for the individual and results orientation.
The principles are as follows:
 Structure the Board to add value:

The Group must ensure that there is a balance of independence, diversity of skills, knowledge,
experience, perspective and gender among the Directors. It should have a Board of an
effective composition, size and commitment to adequately discharge its responsibilities and
duties.

 Promote ethical and responsible decision-making:

The Board ensures that the Bank promotes ethical and responsible decision-making and
complies with all relevant policy, laws, regulations and codes of best business practice using
the Group’s ethics and operating principles.
 Safeguard integrity in financial reporting:
The Board has a structure in place to independently verify and safeguard the
integrity of the holding company’s financial reporting, including the internal audit
department headed by the chief internal auditor and the establishment, as required
by law, of the audit committee, to which the chief internal auditor reports.

 Make timely and balanced disclosure:

The Board shall promote timely and balanced disclosure of all material matters
concerning the Bank. To achieve this the Bank has put in place structures designed
to ensure compliance with the relevant legislation and to ensure accountability at a
senior management level for that compliance.
 Respect the rights of shareholders:
The Board respects the rights of shareholders
and facilitates the effective exercise of those rights. To this end, the Board
has a responsibility, for ensuring that a satisfactory dialogue with
shareholders takes place.

 Recognize the legitimate interests of stakeholders:

The Bank is subject to a number of legal
requirements that affect the way business is conducted. These include
contractual requirements, banking practice, compliance, consumer
protection, respect for privacy, employment law, occupational health and
safety, equal employment opportunity and environmental controls.
NRB Directives to Banks on corporate
Governance
 The Minimum Capital Adequacy Requirement Prescribed by
NRB as its new Capital Adequacy Framework is 10% out of
which 6% is core capital.
 Loan Taken Category :
• Performing Loan
• Non Performing Loan
• Good Loan Provisions
• Bad loan Provisions
 There is a directives loan provisions:
• For organization according to there profit or earning its 25%.
• Individual Loan 30%.
• Industry or Manufacture Loan 30%.

 Banking or financial intuition Information Structure.

• Banking or financial intuition and their details.
• Publish there statements till fiscal year ( shwarn-1).

 Risk management Related Statement

• Transparency in organization work insight.
• Perform Risk Management Function.