Corporate Governance Principles Compliance Report
1. CORPORATE GOVERNANCE PRINCIPLES COMPLIANCE REPORT
İşbank operates in compliance primarily with the Banking Law Nr. 5411 and the regulations pertaining to the Banking Law, as well as all other legal provisions that banks are subject to.
Making public disclosures to the Istanbul Stock Exchange promptly, and providing access to this information on the Bank’s website, keeping shareholders up-to-date with İşbank’s Articles of Incorporation, annual reports and all other information and documents, which will affect the exercise of shareholder rights through the website, are the main practices that largely cover the provisions of the “Corporate Governance Principles” published by the Capital Markets Board.
Mr. Caner Çimenbiçer (Chairman) and Prof. Dr. Savaş Taşkent (Director) are members of the “Audit Committee”, which was established in line with the requirement of article 24 of the Banking Law Nr. 5411.
Without prejudice to the provisions of the Banking Law, explanations regarding the Corporate Governance Principles of the Capital Markets Board, which should be covered in the annual reports of the publicly traded companies, are presented below.
PART I - SHAREHOLDERS
2. Shareholders Relations Unit
Investor Relations Unit of İşbank was founded in 1998 in order to foster communication between the company and the shareholders. The Investor Relations Unit became a separate division starting from 01.04.2009. Following list presents the names and contact details of employees who are working at the Investor Relations Division, which works under Mr. Mahmut Magemizoğlu, who is the Deputy Chief Executive of İşbank.
| Name, Surname | Title | Telephone Number | E-mail Address |
|---|---|---|---|
Süleyman H. Özcan |
Manager |
0212 - 316 16 00 |
Suleyman.Ozcan@isbank.com.tr |
Following are the principal activities performed by the Investor Relations Division:
In the year 2009, more than 500 inquiries were sent to the Investor Relations Division via telephone and e-mail, and all inquiries have been promptly replied. In the same year, Investor Relations Division participated in 10 international investor conferences and roadshows, meeting with 247 investment companies representatives. Furthermore, the Investor Relations Division hosted around 100 investor meetings and 22 conference calls in its head office.
3. Use of Shareholders’ Right to Obtain Information
Information requests of shareholders regarding dividend distribution, capital increase, general meeting, annual report, Bank’s financial statements and related issues, received by İşbank via mail, telephone, e-mail and other media are evaluated and replied in the most effective and fastest way by the Investor Relations Division. Furthermore, individual or group meetings and teleconferences are held with current and potential investors and analysts. In 2009, more than 500 information requests were received from shareholders and replied by İşbank. Furthermore, any developments and information on İşbank concerning the shareholders are regularly disclosed to the related parties through Istanbul Stock Exchange, the website and e-mail.
Necessary announcements regarding capital increase, dividend distribution and General Meeting are made to the shareholders and public via Public Disclosure, media and the Bank’s websites per the provisions of the Turkish Commercial Code, and the Capital Markets Law.
Furthermore, regarding the use of shareholders’ right to obtain information, shareholders and investors are provided with access to the following information, both in English and Turkish via the Bank’s website;
İşbank’s website covering the aforementioned information and documents is revised and updated periodically.
İşbank is audited regularly both by independent external auditors as required by the Banking Law, and by two other auditors who are appointed at the General Shareholders’ Meeting within the framework of the Turkish Commercial Code and mentioned in the Articles of Incorporation of İşbank.
On the other hand, the “Audit Committee”, established as required by the article 24 of the Banking Law, consists of Mr. Caner Çimenbiçer (Chairman) and Prof. Dr. Savaş Taşkent (Director). As per article 11 of Capital Market Law and article 348 of the Turkish Commercial Code, in case of need, the Bank’s General Assembly can elect a special auditor for the investigation and inspection of specific subjects. Shareholders representing at least 5 % of the share capital may request a special auditor at the general meeting to be appointed for the investigation of the subjects envisaged in the related regulations. If this request is rejected at the general meeting, then shareholders would have the right to apply to the court against the rejection decision. İşbank’s Articles of Incorporation do not have a separate regulation for the appointment of a special auditor.
4. Information on General Shareholders’ Meeting
Regulations related to the General Shareholders’ Meetings are stated in the Articles of Incorporation, which is publicly disclosed and also available on İşbank’s website. As per the related regulations, the agenda of Shareholders’ Meetings and other related issues are made publicly available by means of media and internet before the Shareholders’ Meetings. In addition, İşbank’s annual reports prepared for the Shareholders’ Meeting are also presented to the shareholders for their information and examination before the General Shareholders’ Meeting. Besides shareholders, the representatives of related legal institutions who are entitled to attend General Shareholders’ Meetings as per related regulations, attend the General Meetings.
İşbank held an Ordinary General Shareholders’ Meeting on 31.03.2009. Announcements, including the agenda of the meeting and sample of proxy statement, were published on the Trade Registry Gazette, and made public via media and website of İşbank within the legal periods. 73.19% of the shareholders were represented at the aforementioned meeting. Invitations to Shareholders’ Meetings are made within the framework of Capital Market Law and the Turkish Commercial Code as well as the Articles of Incorporation of İşbank. Balance sheet, financial statement footnotes, independent auditors’ report, bank auditors’ report, dividend distribution proposal of the Board of Directors and similar detailed information in the annual reports are made available at branches of İşbank to the shareholders before the Shareholders’ Meetings within the legal time period required by related regulations. Upon request, annual reports are provided to the shareholders before the General Shareholders’ Meetings.
At İşbank’s Shareholders’ Meetings, all shareholders have the right to express their opinions and ask questions on the subjects of the agenda. Moreover, proposals regarding the agenda, which are put forward by shareholders at the Shareholders’ Meetings, are submitted to the voting and approval of shareholders as per the legal procedures.
Real estate related activities of İşbank are regulated by article 63 of the Articles of Incorporation. In addition, the real estate related transactions of the Banks are regulated as follows according to article nr.57 of the Banking Law: “Banks shall not engage in purchase and sale of real estate or commodities for commercial purposes, excluding the real estate and commodity contracts under the Capital Markets Law Nr. 2499 or contracts on precious metals deemed appropriate by the Board; or participate in companies, whose core business is real estate trading, except mortgage and real estate investment trusts.” According to İşbank’s Articles of Incorporation such transactions are under the authority of Board of Directors within the framework of the Banking Law. Such decisions taken either by the Board of Directors or by the Bank management with the consent of Board of Directors, are also made public as “disclosures on material events” under certain conditions.
Minutes of the Shareholders’ Meetings are published on the Trade Registry Gazette and they are available from the related unit of İşbank and the website.
5. Voting and Minority Rights
There are explanations on the Bank’s capital structure and qualifications of shares both in the Articles of Incorporation and annual report and these explanations are submitted to the shareholders for their information.
Currently İşbank does not have any Board member elected by the minority shareholders. There is no regulation in the Articles of Incorporation regarding cumulative voting procedures. However, this does not prevent minority shareholders from using their voting rights through the same proxy.
6. Dividend Policy and Dividend Payout Date
İşbank’s dividend distribution principles are explained in detail in the Articles of Incorporation, which is also available on İşbank’s website. Thus, the Bank’s dividend distribution policy is shared with the shareholders. İşbank’s dividend payment is made within the legal periods.
On the other hand, dividend distribution proposal of the Board of Directors is also published in the annual report, which is provided to the shareholders prior to the annual Ordinary General Shareholders’ Meetings. Dividend distribution is a regular item on the agenda of the General Shareholders’ Meeting and is presented for the approval of shareholders and implemented after the approval.
7. Transfer of Shares
Transfer of shares can be done in accordance with the related legislation and the Articles of Incorporation of İşbank.
PART II - PUBLIC DISCLOSURE AND TRANSPARENCY
8. Public Information Policy
İşbank’s current information policy is presented below and is also available on the website:
General Framework of Information Policy
İşbank discloses all kinds of financial and other information required within the framework of primarily the Banking Law and the related regulations; the Capital Markets Board regulations; Turkish Commercial Code; the regulations of Istanbul Stock Exchange and London Stock Exchange where the Bank’s shares are quoted; and the regulations due to the ADR program in the U.S.A., where the Bank’s shares are registered, by also considering the generally accepted accounting principles and corporate governance principles. The Bank conducts a detailed policy of disclosure and public information.
The main purpose of information policy is to submit the required information and disclosures, other than trade secrets, to the shareholders, investors, employees, clients, creditors and other related parties with equal treatment, in a timely, accurate, complete, and clear manner and to make them easily available with the lowest cost.
İşbank, who has an active approach towards adopting and implementing Corporate Governance Principles, puts great effort in carrying out the requirements of the related regulations and the international best practices with regards to public disclosure and information. Being set in accordance with the above-mentioned context, İşbank’s Information Policy has been ratified and put into effect by the Board of Directors.
Authority and Responsibility
Information Policy has been formed by the Board of Directors. Monitoring and improvement of the public disclosure and information policy of İşbank are under the authority and responsibility of the Board of Directors. Managers in charge of financial management and reporting and the Investor Relations Division have been assigned for the coordination of information function. The authorities of the aforementioned Division fulfill their responsibilities by close cooperation with the Audit Committee and the Board of Directors.
Practices and Methods and Devices Used in Public Disclosure
The practices and devices and methods used in public disclosure within the framework of banking regulations, Capital Markets Board Regulations, Turkish Commercial Code and other related regulations, are listed below:
Other Disclosures
Public disclosures other than the ones mentioned above are made within the boundaries determined by the framework of the Bank’s authorized signatures.
Specifying the Persons Discharging Management Responsibility
The criteria of specifying the persons discharging management responsibility are the administrative functions of the persons in the Bank’s organization and the content of the information accessed. Within this context, apart from the Board Members, Chief Executive Officer and Deputy Chief Executives, some division managers who have access to holistic information on the Bank and who are authorized to make administrative decisions that may significantly affect factors like asset-liability structure, profit-loss, cash flow, strategic targets, are also specified as persons discharging management responsibility.
9. Disclosures on Material Events
In 2009, İşbank made 92 disclosures of material events to the ISE in compliance with the “Material Events Disclosure Requirement Communiqué” of the Capital Markets Board. Regarding the public disclosures in 2009, no further information was requested by Istanbul Stock Exchange nor Capital Markets Board. There was no penal sanctions by Capital Markets Board against İşbank because of untimely public disclosures.
İşbank’s depositary receipts issued in the USA are listed and currently traded on the London Stock Exchange. Certain disclosures made to the ISE are also regularly sent to the London Stock Exchange and the Bank of New York Mellon, which is the sponsor of İşbank’s DR program.
10. Türkiye İş Bankası Company Website (www.isbank.com.tr)
İşbank’s website is actively and intensely used for public disclosures and communicating information. The website includes the information and data required by the Corporate Governance Principles and regulatory authorities, both in Turkish and in English. Information available on the website include organization and ownership structure, information about shares, Articles of Incorporation, Public Disclosures, annual reports, financial statements, Corporate Governance Principles Compliance Report, notices on the general meetings, agenda of the general meetings, information circular related to the agenda, other information, documents and reports related to the agenda, and methods of participation in the general meeting. Utmost care is given to keep the website up to date.
11. Disclosure on Ultimate Controlling Real Person Shareholder/Shareholders
There is no ultimate controlling real person shareholder of İşbank. Moreover, İşbank’s ownership structure is disclosed to public and this information is updated and disclosed in the footnotes of the financial statements published at the ISE and on the web pages of the Investor Relations Division on a quarterly basis. On the other hand, principles and rules of indirect shareholding at banks, namely indirect shareholding of a real person or a legal person at a bank, are regulated by the Regulation Regarding the Establishment and Operation of Banks.
12. Disclosure on People Who can Have Access to Insider Information
As per article 73 of the Banking Law, banks’ shareholders, directors, employees, representatives and officials shall not disclose trade secrets related to banks or their clients thereof which they have received in connection with their positions and duties, to any authority other than those which have been expressly authorized by law.
This obligation shall continue after leaving office, too. Any person, who has been found to infringe this provision of the article, shall be sentenced to a heavy imprisonment term from one year to three years and a judicial fine starting from a thousand days up to two thousand days.
Same penalties are also applicable to any third party who has disclosed trade secrets related to a bank and its clients. If the confidential information and documents are disclosed with a view to acquiring benefits for one-self or for others, the penalties shall be increased by one sixth. Furthermore, depending on the importance of the offense, the responsible persons shall be prohibited from working at the institutions subject to this Law temporarily for a period that is not less than two years or permanently.
İşbank fully complies with the legal regulations on insider trading. İşbank has also adopted anti-insider trading policies as an indispensable part of its corporate culture. For this reason, using information in order to obtain benefits for one-self or for others by employees who are able to deal with insider trading activities, is strictly prohibited. In this context, for instance, employees of the Capital Markets Division are prohibited from buying and selling equities including İşbank shares.
PART III - STAKEHOLDERS
13. Informing Stakeholders
İşbank’s stakeholders are regularly informed about required subjects through press release, press conference, interviews, news on the website, disclosures and various meetings. Within this context, the necessary corporate organizational structure has been formed to satisfy the information demands of shareholders, employees and customers.
Functions related to informing the employees about the human resources practices and policies are conducted by Human Resources People Communications Unit. Human Resources Help Desk operates in order to answer the questions of the employees and to find solutions.
14. Participation of Stakeholders in the Bank Management
İşbank employees participate in the management of the Bank via İşbank Members’ Supplementary Pension Fund, which controls 41.5 % of the Bank’s share capital. Other shareholders are represented in the management of İşbank in line with the regulations of the Articles of Incorporation.
15. Human Resources Policy
Human Resources Policies of the Bank were defined and based on the principles of equal opportunity, fairness, transparency and performance. The related policies are implemented with the aim of increasing the means for employee progress adhering to basic rules of conduct and ethical values. Human resources needs are met in line with İşbank’s vision and mission in respect of human resources, through recruiting people who have the required qualifications for the job using convenient evaluation methods and instruments.
Performances of the employees are evaluated within the framework of personnel evaluation criteria periodically by face to face interviews with the employees; strengths and/or weaknesses of the employees are defined to increase their performances and also to prepare them for a higher position, related development and education schemes are formed; activities are designed for the purpose of realization of these plans and meeting the educational needs. In line with a career management philosophy based on constant development, by taking into account their skills, staff is employed according to their skills at positions that they fit best, in terms of satisfying the needs of the Bank and productivity.
The Bank’s employee candidates are informed about Human Resources practices and hirings through the Human Resources pages of the Bank’s corporate website.
Through İşbank’s Corporate Intranet Portal, which was formed in order to enhance information sharing within the corporation and to communicate with employees more effectively, all the employees are given the opportunity to have quick access to the Bank’s regulations, activities of divisions, up-to-date announcements and to supplementary sources.
Labor union representatives who are assigned by “Basisen (Labor Union of Banks and Insurance Companies) Labor Union” under which İşbank employees are organized, conducts relations with the employees. Labor union representatives have a constructive and effective role in forming communication between the Bank and the employees.
Every two years a Collective Bargaining Agreement is signed by the Bank and Basisen Labor Union. The last Collective Bargaining Agreement that was signed covers the period between 01.04.2008 – 31.03.2010.
It is essential for İşbank that there is not any race, religion, language and sex discrimination and violation of human rights.
16. Information on Relations with Customers and Suppliers
A Customer Relations Unit was established within the Bank to ensure the customer satisfaction and this unit is accessible through the website, call center, mail, fax and via e-mail. All types of customer complaints received by İşbank are followed, assessed and resolved by this unit and relevant feedback is communicated to the related units to improve the product and services processes.
17. Social Responsibility
Together with its equity participations, İşbank is one of the biggest economic players in Turkey due to its contribution to economy; public interest oriented vision; high level of employment creation and awareness of social responsibility, which is among İşbank’s basic management principles.
In addition to İşbank’s contributions to the Turkish economy, it also provides support in the social fields to non-governmental organizations, educational institutions, scientific studies, sports, art and cultural activities. Detailed information regarding these activities can be found on the Bank’s website and annual reports. For the aforementioned purposes, Corporate Social Responsibility Committee was founded as per the resolution of the Board of Directors dated 07.11.2007. There is no violation of environmental legislation regarding İşbank’s operations, and the Bank has never faced legal sanctions thereon.
PART IV - BOARD OF DIRECTORS
18. Structure and Composition of the Board of Directors and Independent Members
İşbank’s Board of Directors has 11 members as listed below:
| Name, Surname | Position |
|---|---|
| Caner Çimenbiçer H. Fevzi Onat H. Ersin Özince Prof. Dr. Savaş Taşkent İsmet Atalay Tülin Aykın Tuncay Ercenk Adnan Keskin Ali Sözen Füsun Tümsavaş Hasan Koçhan |
Chairman Deputy Chairman Director and CEO Director Director Director Director Director Director Director Director |
Board of Directors, excluding the chief executive officer, comprise of non-executive members.
The election of İşbank Board members is implemented according to article 25 of the Articles of Incorporation and the Banking Law. As per the Banking Law, the chief executive officer of the Bank and, in his absence, his deputy shall be a natural member of the Board.
Although there is no restriction for the Board members to work elsewhere, some activities of Board members have been defined as “Forbidden Activities” in article 32 of the Articles of Incorporation of İşbank.
19. The Qualifications of the Board Members
The principles governing the election of Board Members are stated in the Bank’s Articles of Incorporation.
The Banking Law describes the qualifications required for a Board member and İşbank complies with the aforementioned regulations in the election of Board members.
As per article 23 of the Banking Law, the qualifications required for the chief executive officer (The chief executive officer of a bank must have at least an undergraduate degree in the disciplines of law, economics, finance, banking, business administration, public administration and related fields and those that have undergraduate degrees in engineering fields must have a graduate degree in the aforementioned fields, and in both cases they must have at least ten years of professional experience in the field of banking or business administration), shall also be required for majority of the Board of Directors.
20. Vision, Mission and Strategic Goals of the Bank
The vision and general strategic goals of İşbank were approved by the Board of Directors and disclosed to public via the Bank’s website. In this context, İşbank’s vision is to be the most preferred bank in Turkey by customers, shareholders and employees by maintaining its leading, pioneering and reliable position. İşbank’s mission, in general, is described as meeting the needs of its customers with fast, efficient and high standard solutions, increasing the value it created for its shareholders constantly and encouraging employees for the maximum performance. The Board of Directors regularly monitors and supervises the performance of the Bank in terms of achieving the strategic goals.
21. Risk Management and Internal Control
As per article 29 of the Banking Law, banks are obliged to establish and operate adequate and efficient internal control, risk management and internal audit systems that are in harmony with the scope and structure of their activities, that can respond to changing conditions and that cover all their branches and participations subject to consolidation in order to monitor and control the risks that they encounter. Internal controlling activities are carried out by the Internal Control Division and the internal control personnel reporting to the Board of Directors, and risk management activities are performed by the Risk Management Division and personnel reporting to the Board of Directors. Furthermore, banks have to establish internal audit systems that involve all their units, branches and participations subject to consolidation. In this context, bank inspectors investigate the conformity of the banking activities to the legislation, articles of association, internal regulations and banking principles.
İşbank’s risk management and internal control systems have been established in accordance with the international best practices as well as domestic regulations. The units constituting the internal systems are the Board of Inspectors, Internal Control, Risk Management, and Corporate Compliance Divisions. The units constituting the internal systems work under the Board of Directors.
Corporate Compliance Division works under the Board of Directors on issues regarding compliance with the regulation and anti money laundering. The basic objective of the corporate compliance practices is to make the maximum contribution to ensure that the compliance risk at the Bank is managed effectively and as targeted, thus kept under control. Within this framework, the structure and implementation of the Bank’s operations are carried out constantly in accordance with the rules, regulations and standards. In addition, the Corporate Compliance Division, which is also responsible for the coordination of duties and activities related with compliance and compliance risk, has a mutual communication and cooperation with other related Divisions and employees.
22. The Authorities and Responsibilities of the Board of Directors and the Management
Authorities and responsibilities of the Board members, the CEO and the auditors are clearly defined in the Banking Law, the related provisions of the Banking Law, the Turkish Commercial Code and the Articles of Incorporation of İşbank.
23. Fundamentals of the Functions of the Board of Directors
Secretariat to the Board of Directors is in charge of providing all the necessary support and communication activities for the functions of the Board to be carried out.
The Board meetings are normally held once a month, yet interim meetings might be held in case of need. Meetings agenda are prepared in accordance with the proposals of head office departments. Moreover, various reports requested by the Board of Directors from the Bank management and off the agenda topics put forward by the Board members are discussed during the meetings. Meetings agenda and related documents are distributed to the Board members and auditors before the meetings.
All the discussions during the Board meetings are recorded in the minutes of the Board meetings. As per article 28 of the Articles of Incorporation, the minutes of the Board meetings were recorded to the Board Record Book, but within the framework of the change in regulations, starting from 11 June 2008 separate record books are being kept for the Board Resolutions and the minutes of the Board meetings.
14 Board meetings were held in 2009. Generally, full participation is achieved at the meetings. In 2009, 13 meetings were held by full participation and one member did not attend in one of the meetings. 610 pages of meeting minutes were taken for the Board meetings in 2009. 899 resolutions were made both during the meetings and by examining files.
24. Prohibition of Transaction and Competition with the Company
As per the article 32 of İşbank’s Articles of Incorporation; Board members cannot directly or indirectly do commercial business with the Bank for themselves or on behalf of others unless they take the consent of the General Assembly.
25. Ethical Rules
For the aims to preserve stabilization and trust, to improve the service quality, to maintain society’s respect to banking business by preventing unfair competition in the banking sector, the banks, including İşbank, that constitute the Turkish banking sector, united under the “Banks Association of Turkey” and formed the “Code of Banking Ethics” for regulating ethical rules to be effective for the banks’ transactions between each other, with their customers, employees and other institutions. Banks Association of Turkey disclosed the aforementioned Code of Banking Ethics to public with a communiqué.
Within the same framework, the Association of Capital Market Intermediary Institutions of Turkey disclosed “Capital Markets Code of Profession” to public according to the resolution of General Assembly dated 13.12.2001 that contains rules for banks and other intermediary institutions to be applied in their business transactions and relations between each other, with their customers and employees in order to form a respectful society of the members of the profession. The aforementioned codes of ethics that describe the culture of behaviors within the organization have also been adopted by İşbank and shared with its employees through internal communication channels (intranet). On the other hand, İşbank has formed its policies and procedures on anti-money laundering and shared them with its employees through the intranet.
26. Number, Structure and Independency of the Committees Established within the Board
The administrative and organizational structuring required by the Banking Law Nr. 5411 and related legislation, exists in İşbank.
The Audit Committee
The Committee has two members and is chaired by Mr. Caner Çimenbiçer, Chairman of the Board of Directors. The other member of the Committee is Prof. Dr. Savaş Taşkent, who is also a member of the Board.
The Committee is responsible for holding meetings within the framework of the related regulation and is obliged to inform the Board of Directors about the results of its activities and the measures to be taken by the Bank, practices that are required and its opinions on other matters that are deemed to be significant for the Bank to conduct its business safely.
The Audit Committee is in charge of:
In 2009, Audit Committee held 32 meetings and adopted 37 resolutions.
Turkish Republic of Northern Cyprus (TRNC) Internal Systems Committee
As per the resolution of the Board of Directors, dated 15.06.2009, Nr.35546, due to the branches in TRNC, TRNC Internal Systems Committee is established within the framework of TRNC Banking Law and related regulations. The committee has 2 members and is chaired by Mr. Caner Çimenbiçer, who is the Chairman of the Board of Directors. The other member of the committee is Prof. Dr. Savaş Taşkent, who is also a member of the Board. The Committee informs the Board of Directors on the results of its own activities, its opinion on the measures needed to be taken and the necessary practices to be implemented by the TRNC branches and other important issues in order for these branches to operate in a secure way.
TRNC Internal Systems Committee is responsible for ensuring the efficiency and sufficiency of the internal systems provided by the Bank in relation to the operation of the TRNC branches; ensuring the operation of the internal systems, accounting and reporting systems in line with the law and related regulations and ensuring the integrity of the produced information; carrying out the preliminary assessment of independent audit firms and other companies providing services directly related to other banking operations to be selected by the Board; and monitoring regularly and coordinating these companies that are selected and contracted by the Board.
In 2009, the TRNC Internal Systems Committee held 3 meetings and adopted 3 resolutions.
Credit Committee
İşbank’s Credit Committee makes resolutions on credit allocation within its authorization limit; makes decisions on demands to change the credit allocation conditions within its authorization limit and carries out any assignments regarding credits, given by the Board.
İşbank’s Credit Committee consists of three members; one of them is the Chief Executive Officer, who is also the chairman of the Committee and two members of the Board. Each year, at the first Board meeting after the Annual General Meeting, the Board members of the Credit Committee are determined until the next General Meeting. Two alternate Committee Members are also designated who will stand if need arises. The Committee makes decision on the credit allocation with consensus, after each Committee Member examines and signs the files. Resolutions made by the Committee with consensus are applied directly; and resolutions made by the Committee unanimously are applied after the approval of the Board of Directors.
By the end of 2009, 130 files were evaluated under the authority of the Board.
The Credit Committee of January-March 2009 consisted of three members: Chief Executive Officer, H. Ersin Özince; Deputy Chairman of the Board of Directors, H. Fevzi Onat and Board Member, Füsun Tümsavaş, with two deputy members Chairman of the Board of Directors, Caner Çimenbiçer and Board Member, Tülin Aykın. The members of the current Credit Committee that was established after the Bank’s Annual General Meeting dated 31.03.2009 are permanent member, Chairman of the Committee and Chief Executive Officer, H. Ersin Özince, Deputy Chairman of the Board of Directors, H. Fevzi Onat and Board Member, Füsun Tümsavaş. Deputy members of the Credit Committee are Board members Tülin Aykın and Hasan Koçhan.
| Committee Members | Duty | Primary Duty |
|---|---|---|
| H.Ersin Özince H.Fevzi Onat Füsun Tümsavaş |
Chairman of the Committee Member Member |
Chief Executive Officer and Board Member Deputy Chairman of the Board Board Member |
2009 January-March deputy members: Caner Çimenbiçer – Tülin Aykın
2009 April-December deputy members: Tülin Aykın – Hasan Koçhan
Credit Revision Committee
Being one of the committees of the Board of Directors, the Credit Revision Committee was founded as per the article of Revision of Limits within the context of Credit Risk Policy, which came into effect by the resolution of the Board of Directors dated 30.09.2003 and nr 30249, within the framework of the policy of reviewing the loan portfolio, evaluating the relations with credit customers at the end of the year and revising, when necessary, the credit limits allocated to the said persons and corporations. Within this framework, as per the resolution of the Board dated 17.12.2008 and nr 35143, the Credit Revision Committee, consisting of Deputy Chairman of the Board, H. Fevzi Onat and Board Members Tülin Aykın, Füsun Tümsavaş and Hasan Koçhan, reviewed all firms and risk groups under the authority of the Board of Directors and Credit Committee and completed, within this context, limit revision examinations of 6,313 group or individual firms and 376 correspondent banks in two parts as on 03.03.2009 and on 09.06.2009.
As per the resolution of the Board of Directors dated 31.12.2009 and nr 36077, the current Credit Revision Committee, consisting of Deputy Chairman of the Board, H. Fevzi Onat and Board members Tülin Aykın, Füsun Tümsavaş and Hasan Koçhan, is responsible for determining the credit limits of the related firms and institutions for the year 2010.
Corporate Social Responsibility Committee
The Corporate Social Responsibility Committee was established as per the Regulation on Social Responsibility Practice, which was adopted with the resolution of the Board, and its members are Board Members İsmet Atalay and Tülin Aykın, Deputy Chief Executives Özcan Türkakın and Hülya Altay and Head of the Corporate Communications Division Suat E. Sözen. The Committee operates in accordance with the Regulation principles, by considering the basic fields of contribution, which are determined as Education, Culture and Art, Health, Protection of the Environment and Other Activities.
In 2009, Corporate Social Responsibility Committee held 10 meetings and adopted 40 resolutions.
Risk Committee
Risk Committee is responsible for formulating the risk management strategies and policies İşbank will adhere to both on a consolidated and unconsolidated basis, presenting them to the İşbank Board of Directors for approval, and monitoring compliance with them. Committee is the common communication platform with the Bank’s executive divisions in terms of assessing the risk the Bank is exposed, making suggestions about the precautions to be taken and methods to be followed. The Committee’s principal duties are the following:
Committee Members:
Risk Committee is chaired by H. Fevzi Onat.
Risk Committee contributes to the configuration of Group risk policies also through consolidated group meetings. In the activities that the Risk Committee carries out on a consolidated basis,
also attend the meetings.
In 2009, the Risk Committee met a total of 12 times 4 of which were on a consolidated basis. In addition to the risk management evaluations of İşbank and its participations under consolidation, 12 risk management reports were submitted to the Committee and 15 resolutions were adopted.
27. The Remuneration of the Board of Directors
Monthly remunerations of the Board members and auditors are determined annually at İşbank’s General Shareholders’ Meetings and disclosed to the Istanbul Stock Exchange.
On the other hand, restrictions related with the loans to be extended by İşbank to the Board members are defined in Article 50 of the Banking Law and İşbank complies with the requirements of the related legislation. In this context, İşbank does not extend loans to its Board members other than those allowed by the law.
As for the remuneration of the Board of Directors; article 58 of İşbank’s Articles of Incorporation contains the following expression: “After the legal and extraordinary reserves fund and the first dividend have been allocated from the net profit, 0.25% of the remaining balance is distributed among the members of the Board of Directors and the Chief Executive Officer equally.” Within the context of this regulation, financial rights of the Board members are determined with an approach that is sensitive to the financial performance and profitability of İşbank to a large extent.