بانک سینا

Corporate governance includes the processes through which corporations' objectives are set and pursued in the context of the social, regulatory and market environment. It defines the framework of rules and practices by which a board of directors ensures accountability, fairness, and transparency in a company's relationship with its all stakeholders.

In recent years, advised documents from the Basel Committee on Banking Supervision (BCBS) and the recommendations of the CBI have provided the bank with effective methods of corporate governance, emphasizing that effective corporate governance is essential for achieving and maintaining public trust in the banking system.

Sina Bank also views sound corporate governance as a key factor in enabling the banking system and economy to perform well as a whole and to gain public confidence.

Based on the Basel Committee guidelines and CBI recommendations, Sina bank adheres to the following priorities in its strategic policies and procedures, to guarantee good corporate governance:

1-Concentration on preventative controls and self-control system
2-Taking advantage of IT to increase supervision and control
3-Development of supervisory culture, disclosure and accountability

It is responsibility of board to perform a number of functions without interfering day-to-day management of bank. For this purpose, it must meet regularly and retain full and effective control over the affairs of bank. It must hold regular discussions with senior management and internal audit, establish and approve policies, and monitor the progress toward corporate objectives.

The board clarifies and specifies the strategic objectives and guiding principles for the bank, codes of conduct for senior management and standard of appropriate behavior for staff.

The board has full authority to approve and monitor a proper business strategy and ensure effective compliance with policies and mechanisms of the business strategy, taking into account its exposure to risk. This strategy is sufficiently transparent to all stakeholders.

Under the direction of the board, senior management can ensure that the bank's activities are consistent with the business strategy, risk and policies approved by the board.

The existence of an effective internal audit system is indispensible for the safety and soundness of bank. Such a system can help ensure realization of the bank's goals and enhance its long-run profitability. Internal audit are also indispensible for ensuring management oversight and developing a healthy culture within the bank. They are necessary for recognizing and assessing risks, detecting problems within the institution and correcting deficiencies.

Internal audit assures following principal functions:

1-Risk awareness and management
2-Reliable and on-time financial, managerial and operational information.
3-Acquiring economic and effective resources
4-Realization of bank's plans and objectives
5-Cultivation of continuous improvement and quality in control processes

It is essentially the function of the board of directors to ensure that an effective system of internal audit is laid down and conscientiously observed.

Supervisory bodies are in place to monitor the corporate governance, risk management and internal control functions with sufficient authority, stature, independence, resources and access to the board.