Governance Framework

Good governance practices produce better operational performance through healthier allocation of resources and improved management. It can lead to better relationships with all stakeholders, and thus create sound reputation by creating confidence, establishing goodwill and building investor trust. Since its early days, the Bank has developed a Corporate Governance Framework in line with the Basel Committees’ guidance on the subject for banking organizations.

The main pillars of the Cedrus Invest Bank’s Corporate Governance approach are as follows:

Corporate Discipline:
The Bank is committed to adhere to behavior that is universally recognized and accepted to be correct and proper. This encompasses the awareness of, and commitment to, the underlying principles of good governance, particularly at senior management level.

Necessary information related to the Bank’s actions, financial and non-financial aspects pertinent to its businesses is made available to the stakeholders in a candid, accurate and timely manner – not only the audit data but also general reports and press releases. This reflects the fact that investors shall obtain a true picture of what is happening inside the Bank.

The decisions made by the Bank, as well as internal processes established, are objective and do not allow for undue influences. The Bank seeks to put in place appropriate mechanisms to minimize or avoid potential conflicts of interest that may exist. These mechanisms range from the composition of the Board, to appointments to committees of the Board, and of external parties such as the auditors.

Decision makers at the Bank are accountable for their decisions and actions. Effective tools are set to allow for accountability. These provide investors with the means to query and assess the actions of the board and its committees.

With regard to management, responsibility pertains to behavior that allows for corrective action and for penalizing mismanagement. Management at the Bank is eager to put in place all what would take to set the Bank on the right path.

Succession Planning:
The Chairman and General Managers at the Bank are responsible to provide an effective succession plan that identifies at least one potential successor for every managerial position at the Bank.

The systems that exist within the Bank are balanced in taking into account all those that have an interest in the Bank and its future, acknowledgement of, respect for and balance between the rights and interests of the Bank’s various stakeholders.

It is the bank's policy to present its financial statements and associated disclosures in accordance with International Financial Reporting Standards (IFRS). As a matter of good corporate governance, it is the responsibility of the Bank’s Board of Directors and Audit Committee to show diligence in meeting the demanding oversight requirements of the Bank’s stakeholders by ensuring that the financial statements are as transparent as possible.

Social Responsibility:
The Bank is committed to ethical standards and appreciation of the social, environmental and economic impact of its activities on the communities in which it operates.