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.
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.
Policy
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.
Activities
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.
China Bank upholds the applicable laws, rules and regulations to combat money laundering and terrorist financing; ensuring that it is not used as a channel for such activities. In order to ensure bank wide compliance with the Anti-Money Laundering and Counter- Terrorism Financing (AML/CTF) laws, rules and regulations, the Bank has adopted a Money Laundering and Terrorist Financing Prevention Program (MTPP), approved by the Board of Directors. It is designed in accordance with the Bank’s corporate structure and risk profile and is reviewed and updated regularly to incorporate recent regulatory issuances and approved amendments. The MTPP provides guidelines to combat money laundering and terrorism financing activities, and promotes high ethical and professional standards.
The MTPP is disseminated to all officers and staff of the Bank who are required by law and by the Bank’s policies to implement the program. Regular AML trainings and seminars are also conducted to update the Bank’s directors, officers and staff of the latest AML/CFT requirements, latest trends, emerging risks, and to continuously inform them of their obligations under the AMLA. The Bank has also adopted an AML e-Learning platform to efficiently expand the reach of AML training nationwide.
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 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.
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.
China Bank declares cash dividends at a payout ratio of approximately 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.
Click here to read about Dividend Policy.
China Bank Directors are entitled to a per diem for attendance at each Board/Board Committee meeting and to a portion 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.
As stipulated in the Bank’s amended By-Laws, our directors receive a per diem of up to ten thousand pesos (P10,000.00) for attendance at each meeting / session of the Board of Directors or of any Committee.
In compliance with the Revised Corporation Code, the Bank disclosed the compensation of the directors on an individual basis in the Bank's 2023 Definitive Information Statement (20-IS) submitted to SEC and the Annual Financial and Sustainability Report (AFSR).
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 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.
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. The Bank also has an outsourcing policy in place.
Without fear of any retaliation, China Bank directors, personnel, clients, stakeholders and any third party may report illegal activity, unethical behaviour, or actual, suspected, or threatened condition, acts and/or omission/s of the following, committed by any Bank director, personnel, supplier, contractor, vendor and consultant in the performance of their function, or irregularities in Bank operations and procedures:
The identity of the whistleblower will be kept confidential and all reports evaluated accordingly. If warranted, the handling unit/s shall conduct preliminary investigation.
The Bank's Whistleblowing mechanism is under the Audit Committee – an independent control committee that ensures a system is in place for the independent investigation, appropriate follow-up action and subsequent resolution of complaints. It is composed of non-executive directors, majority of whom are independent directors.
Whistleblowing disclosures may be reported through the following channels:
Email Address: WBReporting@chinabank.ph
Landline Number: 8885-5555 loc. 5010 (Landline calls are recorded for protection and security purposes.) – only available during Monday to Friday, 8:30am-5:30pm (except holidays)
Mobile Number: 0917-104-5182 – only available during Monday to Friday, 8:30am-5:30pm (except holidays)
MS Forms: Click HERE for the Whistleblower's Disclosure Form or scan the QR code below: