Achievements in 2010

Annual report 2010

# Achievements in 2010

Bank Vozrozhdenie has a clearly established track record as a leader in corporate governance in Russia. It has a diversified shareholder structure, and its management treats equal rights for all shareholders and the long-term maximization of shareholder value as essential values. A system of corporate governance conforming to best international practices has contributed significantly to the Bank’s investment case, as well as increased its ability to raise capital and expand its loan portfolio.

The Bank’s corporate governance procedures and the principles they are based on are set out in the Articles of Association, which specify the authority and responsibilities of each level of management at the Bank, as well as regulate the systems of internal control and audit. The corporate governance system is regulated by a Corporate Conduct Code and a Code of Corporate Ethics, which also list a set of overall objectives in developing the system:

- Increase information transparency
- Improve the decision-making process
- Reduce risk exposure
- Prevent conflicts of interest
- Adhere to ethical principles in relationships with all interested parties

In 2010, the focus remained on bringing the Bank’s internal procedures into compliance with the corporate governance practices already adopted, as well as new developments in Russian legislation and best international practice.

Last year, the key developments in the corporate governance system were:

- Streamlining the decision-making process by management bodies
- Introducing procedures for evaluating the work of the Board of Directors and executive bodies
- Regulating procedures for developing the strategy
- Increasing information transparency
- Streamlining the system for managing banking risks and internal control procedures

The Board of Directors conducts an annual assessment of the quality of corporate governance at the Bank in accordance with the recommendations specified by the Central Bank, and each year it confirms a schedule of activities for making improvements.

As part of the work to develop the corporate governance system in 2011, the Bank plans to:

- Introduce procedures for controlling the use of insider information
- Review issues relating to approving the development strategy
- Evaluate the work of the Board of Directors and executive bodies
- Increase information transparency

In 2010, Bank Vozrozhdenie was recognized as one of the most transparent companies in Russia by Standard & Poor’s and the Center for Economic and Financial Research of the Russian School of Economics, which ranked it 19th out of the country’s 90 largest corporations.

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