Сorporate governance system

Controlling Shareholder’s Memorandum

CREDIT BANK OF MOSCOW’s efficient and well-developed corporate governance system is an important element of its policy, integrated into its business management system.

The bank seeks to meet the best international and Russian standards by continuously improving its governance system in line with the Russian Corporate Governance Code recommended by the Bank of Russia and international corporate governance standards setting out most important principles shared by the bank’s shareholders, directors and officers.

The commitment of the bank’s shareholders, Supervisory Board members and employees to the Corporate Governance Code is attested by the fact that its principles and provisions are incorporated into the bank’s bylaws, and its corporate governance system is being developed according to a plan approved by the Supervisory Board. The development of corporate governance practices in the bank is overseen by the Compensation, Corporate Governance and Nominations Committee of the Supervisory Board.

The controlling shareholder is a Supervisory Board member himself and confirms his commitment to best corporate governance practices by making sure each year that as many independent directors are elected to the Supervisory Board as necessary to comply with the listing rules and corporate governance principles.The controlling shareholder also participates in annual shareholders meetings, thus giving minority shareholders an opportunity to ask him directly about the bank’s development.

The Supervisory Board pays much attention to the protection of minority shareholders’ interests and to the quality of the bank’s disclosures to all stakeholders. To protect shareholders’ interests and facilitate the achievement of the bank’s goals, the Supervisory Board regularly monitors the risk management and internal control system’s effectiveness.

The bank grows and develops actively, strengthening its capital base in particular by way of equity capital market exercises, and seeking to comply, now and going forward, with high corporate governance standards.