Check Management

Corporate Governance
Our Business

Governance Policies


We ensure the values-driven management and control of our operations, in line with global best practices, regulatory requirements, and our own Corporate Governance Manual and Code of Ethics.  We have various mechanisms and policies in place, regularly reviewed and updated as necessary, to help us fulfill our responsibilities to our stakeholders and continue to earn their trust and support.

Anti-bribery & corruption
We are committed to honest and ethical business practices and do not tolerate any form of bribery and corruption. We take our legal responsibilities very seriously and expect our directors and employees at all levels to do the same. China Bank directors and employees are to act professionally, fairly, and with integrity in all our business dealings and relationships wherever we operate; thus, they 1) must never offer, promise, or give a financial or other advantage to any person or party, including public officials, with the intention of inducing or rewarding improper performance by them of their duties or to facilitate the transaction of the Bank, and 2) must never directly or indirectly accept or agree to receive a financial or other advantage as a reward for performing any act prejudicial to the Bank, the director/employee himself, or a third party.

Safeguarding Creditors' Right

Policy Activities
China Bank is committed to fair and honest business conduct, upholding all contractual obligations to protect the rights of our creditors and the Bank’s reputation.  We enter into binding contracts with our guarantee of honoring the mutually agreed-upon terms and conditions.  In the event of liquidation, we uphold the law of giving priority to creditors in the payment of obligations in the normal course of business. Bank deposits are insured with the PDIC up to a maximum of P500,000.00

In compliance with BSP Rules, proper disclosures are done on:

Deposit Interest;
Truth in Lending Act;
Notice on temporary closure due to relocation;
Publication of Statement of Condition;
Posting of Audited Financial Statement and availability of the Annual Report in conspicuous areas of the branches and business office;

Notice to depositors on: cut-off time; service charges and maintenance fees at teller’s counters or conspicuous area of the branch.
 

Anti-Money laundering
We are committed to comply with the Anti-Money Laundering (AML) law and other related rules and regulations. The Compliance Division through its AML Unit, ensures that our AML System is effectively implemented at all times. Know Your Customer (KYC) measures and other related standards like proper client classification based on client risk assessment system are regularly reviewed and enhanced to remain aligned with the changing requirements and emerging trends. The Board of Directors through the Compliance Committee, ensures that programs and controls are in place, implemented, monitored, and regularly updated to ensure that our Bank, employees, products, and services are not used for money laundering and terrorist financing activities.

In place is a Money Laundering and Terrorist Financing Prevention Program (MLTP) which upholds the AML requirements and seeks to prevent the Bank from being used for unlawful activities. The Compliance Division is responsible for managing, updating, and implementing the MLTP, including ensuring that employees have sufficient and up-to-date knowledge of the regulations and policies, through classroom and electronic-based trainings and constant communications / reminders.

Insider trading
We have strict policies on securities transactions to support and uphold all applicable laws against insider trading. China Bank Directors, officers, and employees who are considered to have knowledge of material facts or changes in the affairs of China Bank which have not yet been publicly disclosed— including any information likely to affect the share price of the Bank’s stock—are strictly prohibited from directly or indirectly engaging in financial transactions that make use of “insider information”. This also includes consultants and advisers and all other employees who are made aware of undisclosed material information. Any transactions by the Directors and principal officers involving the Bank’s shares are required to be disclosed within three business days from the date of the transaction.

Conflict of interest
Conflict of interest between the Bank and employees should be avoided at all times. However, should a conflict arise, the interest of the Bank must prevail. Employees are not permitted to have or be involved in any financial interests that are in conflict or appear to be in conflict with their duties and responsibilities to China Bank. They are likewise barred from engaging in work outside of the Bank unless with duly-approved permission, as well as work that lies in direct competition with the Bank.

Related party transactions
We recognize that Related Party Transactions (RPTs) may give rise to a conflict of interest; thus, we are careful in dealing with related parties. Transactions with all related parties are thoroughly reviewed as having been conducted in the ordinary course of business, at arm’s length basis, at fair market prices, and upon terms not less favourable to the Bank, in the same terms as those offered to others. All material RPTs are reviewed and vetted upon by the RPT Committee before they are endorsed to the Board for approval and are ratified by the stockholders during the Annual Stockholders’ Meeting. No director is allowed to participate in the discussion or deliberation, including approval of a transaction where he is a related party, to prevent conflict of interest. We also established specific materiality threshold on a per transaction basis. Our revised RPT Framework and Policy Guidelines harmonized the Bank’s compliance with the requirements of the Securities and Exchange Commission on Material RPTs and Bangko Sentral ng Pilipinas. For purposes of compliance with SEC, the Bank’s materiality threshold will be ten percent (10%) or higher of its total assets, based on China Bank’s latest audited financial statements. Corresponding transactions will be subject to independent third party validation, to ensure fairness of price. The Bank’s RPT policy will be kept relevant and aligned with the latest regulatory issuances, to serve as a guide to the China Bank group in dealing with related parties.

Dividends
China Bank declares cash dividends at a payout ratio of at least thirty percent (30%) of the net income of the prior year, subject to the conditions and limitations set forth in more detail in the dividend policy statement contained in the Corporate Governance Manual. Dividend payouts, as part of the Bank's capital management policy and process, are reviewed and calibrated annually— taking into account the economic and business environment, the Bank's risk profile and appetite, and trends in capital markets or regulatory environment to achieve the following objectives: 1) Delivering to stockholders satisfactory returns and enhanced shareholder value; 2) Healthy capital adequacy ratios to comply with regulatory capital requirements and maintain strong credit rating; 3) Capital buffer to support business growth and pursue business opportunities.

Board Remuneration
China Bank Directors are entitled to a per diem of P500.00 for attendance at each Board/Board Committee meeting and to 4% of the Bank’s net earnings. Executive directors receive performance-related compensation based on their performance, banking experience, position, and rank in the Bank, while non-executive directors do not receive any performance-related compensation.
For China Bank employees, our general remuneration policy is to provide fair and competitive salary and benefits commensurate with their experience, responsibilities, job grade/corporate rank and position. We also benchmark against the executive compensation for the same positions in comparable organizations (similar size, organizational structure, business risk, and management complexity). Tied to this is a competency-based Performance Management System that calls for the alignment of individual key results, competencies, and development plans with China Bank’s overall business targets and strategy. Performance is reviewed annually and employees are rewarded based on their performance.

Disclosure and transparency
The Bank is a staunch advocate of transparency and accountability, maintaining a high standard of disclosure to facilitate public understanding of the Bank’s financial condition and the state of its corporate governance in order for them to make a well-informed decision. All material information about China Bank is adequately and promptly disclosed in accordance with SEC and PSE’s disclosure policy like the publication of our quarterly financial statements in national broadsheets and presentation of a detailed annual report for our Stockholders’ Meetings. Furthermore, we disclose market-sensitive information like dividend declarations, joint ventures and acquisitions, sale and disposition of significant assets, as well as financial and non-financial information that may affect the decision of the investing public through the Electronic Disclosure Generation Technology (Edge) of PSE, making them available on the PSE website and also our corporate website. These disclosures are simultaneously available to analysts, investors, local and international media, and the investing public.

Vendor selection and procurement of goods and services
We are committed to fair market practices. All prospective suppliers and contractors must also undergo and pass our accreditation process before any contract is awarded to them. We assess their reputation, capability, reliability, and actual performance. We follow standards of objectivity, impartiality, and equal opportunity and evaluate vendor bids based on thorough criteria such as quality, price, service, and overall value to the business, ensuring that we prevent any favoritism or conflicts of interest. Consequently, we only transact with suppliers and contractors with integrity and with good track record.

Whistleblowing
Without fear of any retaliation, our employees, customers, shareholders, and third party service providers may report questionable or illegal activity, unethical behavior, fraud or any other malpractice by mail, phone or e-mail. The identity of the whistleblower is kept confidential and all reports are investigated accordingly. If determined sufficient in form and substance, the disclosure is referred either to the Audit Division or the Human Resources Group (HRG) for further investigation. If the report is found to be baseless, the Whistleblower is informed of the status within 24 hours from receipt.

Meritorious disclosure, as may be determined, will be given recognition and may be entitled to an award as deemed necessary by the HRG or the Investigation Committee. The Chief Compliance Officer (CCO) is the primary driver in the implementation of our Whistleblowing Policy. All disclosures are directed to the CCO or to the duly designated Compliance Officer, who is responsible for determining the sufficiency and validity of the report. The policy also allows reporting of any disclosure to the Chief Audit Executive, Chief Risk Officer, and the HRG Head.

Reports/disclosures may be sent to any China Bank Officer or to:

CHIEF COMPLIANCE OFFICER
Email address: whistle_chib@yahoo.com
Mobile number: 0947 996-0573
Address: China Banking Corporation, P.O. Box 2182, Makati Central Post Office

Click here for the Whistleblower’s Disclosure Form

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