KBZ Bank is committed to the highest standards of corporate governance. As such, increasing transparency and accountability in all aspects of our business and operations has been a strong focus of our ongoing transformation.
In 2020, we were honoured to recognised amongst the top 10 most well-governed and transparent companies in Myanmar (out of 260 companies), ranking 7th for the 2020 Pwint Thit Sa/ Transparency in Myanmar Enterprises (TiME) assessment, with us securing the the second highest score for Corporate Governance disclosure.
With more transparent disclosures, we were recognized as a Rising Star in Corporate Governance (banking sector) Myanmar 2021 by World Business Outlook Awards 2021.
Our Corporate Governance Framework sets out the system of rules, practices and processes by which the Bank is governed.
This framework complies with the instructions, directives, policies and procedures of the Central Bank of Myanmar (“CBM”), the Financial Institution Law (“FI Law”), the Myanmar Companies Law 2017 (“MCL 2017”), KBZ Bank’s policies, and the Basel Committee Guidelines on Corporate Governance Principles for Banks.
Our Board and Board Committees
Our Board of Directors provides leadership and oversight on senior management, and ensures they adhere to the Bank’s values and risk culture in all circumstances. The Board’s responsibilities include:
- Overseeing the development of the Bank’s business objectives and corporate strategy, including risk management
- Charting the Bank’s corporate strategy, including risk management
- Monitoring and managing the Bank’s performance
- Succession planning and development
- Preventing conflicts of interests and balancing the competing demands on the Bank
- Reviewing the company’s material controls and risk management systems
- Approving the Bank’s policies and overseeing the implementation of key policies, capital adequacy assessment processes, capital and liquidity plans, and internal control systems.
To carry out its duties more effectively, the Board has appointed a number of committees to oversee specific and clearly defined functions. These committees are:
- Board Credit Committee (“BCC”)
- Board Audit and Risk Committee (“BARC”)
- Board Nomination and Remuneration Committee (“BNRC”)
More information about our Board and Board Committees, as well as our Board Policies, can be found in our Corporate Governance Statement.
Committees and Responsibilities
The responsibilities of the Board subcommittees are as follows:
Board Meetings & Appointments
Orientation of New Directors and Succession Planning
To maintain a current and effective Board, we ensure that new Board members are equipped with the information that will allow them to execute their duties in the best possible way. Our orientation process includes familiarisation with the role of the Board of Directors and its committees and charters, as well as all relevant policies adopted by the Board, the Bank’s business activities, and the industry and regulatory environment in which we operate.
Comprehensive updates, including on economic, regulatory, industry and business developments, ensure that our Board is constantly up-to-date and equipped to lead the Bank effectively. A combination of executive coaching and classroom training is deployed to address any further leadership and developmental needs.
Eight of our management team members joined a 3-week Director Certification Program in January 2022. The training was provided by the Myanmar Institute of Directors, co-designed with Singapore Management University. The program was set within an Asian business context and provides a well-rounded board-level view of key strategies and focal issues facing many companies in Myanmar.
The Board of Directors need to be comprised of the right people to reflect the strategic priorities of the shareholders. As the Bank’s long-term succession planning develops, it is important to ensure that the Board composition is in alignment. The key considerations shall be included as follows:
We also have best practices in place for planning for senior appointments, including developing future-focused profiles for critical roles and the skills and competencies required. We create opportunities for our employees to rotate into different roles, and ensure our best people are ready to embrace bigger roles, allowing us all to play to and maximise our collective strengths. Our VCGMs, for instance, are trained with a view that they may, one day, become part of KBZ Bank’s management. Similarly, some of our current Managing Directors began their careers as branch executives. Potential successors are identified and rigorously assessed, with timelines and transitions taken into consideration.