CORPORATE GOVERNANCE DISCLOSURE
NMB Bank is a Joint Venture with FMO, Netherlands and a member of the Global Alliance for Banking on Values (GABV), it is therefore the Bank’s inherent practice and culture to adopt and adhere to ethical and sustainable banking practices.
The Bank has laid down clear policies in regards to – Conflict of Interest, Related Party Transaction and Whistle Blowing to strengthen its Good Corporate Governance practices. Additionally, the Bank has adopted the practice of Self Declaration and provides assets details of the employees and the Board of Directors which is evident of its prudent disclosure and transparency practices.
CORPORATE GOVERNANCE PHILOSOPHY
Corporate Governance policies/practices in NMB Bank are focused at meeting expectations of all our stakeholders by creating an environment of fairness, transparency and accountability within the organization. The Bank believes in creating and delivering sustainable shareholders value. Our corporate governance facilitates our commitment towards service excellence and our vision towards responsible banking. We believe that Good Corporate Governance culture is necessary for motivating our dynamic workforce. We strive for optimum level of business ethics, through our banking principles which are guided by various intertwining strategic frameworks.
ROLES OF THE BOARD OF DIRECTORS (BoD)
Responsibilities of the BoD
The BoD is responsible for the Bank’s business strategy, financial soundness, governance structure, risk management and compliance adherence obligations to the regulators. The Board is driven by a standard code of conduct, duties and responsibilities as stipulated by the Nepal Rastra Bank. It exercises its authorities for the overall growth of the Bank in a sustainable manner protecting the funds of depositors as well as honoring the regulator’s requirements. The Board actively monitors the overall development of the Bank and its employees by its presence in the following committees:
- Asset Laundering Prevention Committee
- Audit Committee
- Employee Services and Benefit Committee and,
- Risk Management Committee
Other responsibilities of the Board include overseeing and managing compliance risk, disclosing true and transparent information through the Bank’s Annual Report and financial statements.
Board Structure
The Board maintains a diverse set of individuals from various backgrounds. The inclusive nature of the Board structure brings individuals of varied skill sets and experiences together which we believe contributes in generating comprehensiveness in the Bank’s decision making process and strategies.
| Board Member | Representative Group | Designation |
|---|---|---|
| Mr. Pawan Kumar Golyan | Promoter Shareholder | Chairman |
| Mr. Nico Klaas Gerardus Pijl | Representative of Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. – the “FMO” | Director |
| Mr. Jeevan Kumar Katwal | Representative of Employee Provident Fund - Promoter Shareholder | Director |
| Mr. Yogendra Lal Pradhan | Public Shareholder | Director |
| Mr. Uttam Bhlon | Public Shareholder | Director |
| Mr. Sirish Kumar Murarka | Public Shareholder | Director |
| Mr. Pradeep Raj Pandey | Independent Director | Independent Director |
ROLES OF THE MANAGEMENT
The Bank’s Management under the guidance of its Board of Directors, organizes and conducts the Bank’s activities consistently and in line with the business strategy, risk appetite/risk management, compliance, good corporate policies approved by the Board. Apart from managing the daily operations, the management is also responsible for prudent management of various risks through its active participation in the Risk Management Committee; formulation of strategies for sustainable growth and effectively implementing various policies. Under the supervision of the Management, the Internal Audit ensures proactive activities including identification of the inherent problems as well as making appropriate recommendations to mitigate potential risks to the Bank. The Management is dedicated to safeguard the interests of its depositors and their trust in the Bank by providing excellent client services, prudent underwriting and by working as growth partners with the customers.
The Bank has a Corporate Governance Committee to ensure a holistic approach towards adhering to Good Corporate Governance practices in the organization. The Corporate Governance Committee of the Bank comprises of eight members including the Chief Executive Office as the Chairperson of the Committee. The said committee is accountable to the Risk Management Committee and eventually to the Board of Directors. In view of the policies and practices that have been set in place, it is ascertained that the Bank practices Good Corporate Governance to protect the legitimate interests of all stakeholders in due compliance with the applicable Acts and Regulations of the land.
