Annual Report 2012 - National Savings Bank

55ROOTED IN OUR HERITAGEGOVERNANCE REPORTThe Bank is in compliance with all theapplicable regulatory requirements ofthe CBSL including the “Know YourCustomer (KYC)” requirements alongwith the Anti-Money Launderingprovisions issued under the FinancialTransaction Act and the Anti MoneyLaundering Act.In addition, as a State owned Bank,NSB is governed by the provisionsand the administrative regulations ofthe Ministry of Finance and Planningand the Government. The Bank tablesits Financial Statements annually inthe Parliament. This ensures that thepublic interest in the Bank’s affairsis secure. Financial Statements areaudited by the Auditor General.Further the Compliance Division hasa provision in its Action Plan to carryout a quarterly compliance audit reviewin selected branches. The Bank alsopublishes its nancial statements andother disclosures as per the regulatoryrequirements thus increasing thetransparency and reliability of theBank’s policies and processes indischarging its duties.We believe that all of the aboveenhances the Bank’s CorporateGovernance structure and strengthensthe good governance practices in thebest interests of the Bank and all itsstakeholders. The general supervision,control and administration of the affairsand the business of the Bank are vestedwith the Board of Directors which isappointed by the Ministry of Finance &Planning. The newly appointed Boardof NSB comprises of seven Directors,six of whom including the Chairman areNon-Executive Directors. The positionsof the Chairman and CEO are keptseparate. The Directors of NSB areprofessionals and eminent persons fromboth the private and public sectors whoare able to add value to the CorporateGovernance process. The Board hasalso formulated appropriate checks andbalances to ensure that the CorporateGovernance process is upheld at alltimes. The annual audited FinancialStatements along with the AnnualReport are published ahead of the datesstipulated by the Finance Act.The Governance Framework at NSBis foremostly based on the followingprinciples:• Assuming responsibility andaccountability in respect of themanagement of affairs of NSB atall levels.• Ensuring the oversight of specicresponsibility assigned to themthrough Board appointed Sub-Committees.• Determining the best structures ofmanagement for the Bank to achieveits business objectives and strikingthe balance between business andthe true spirit of ‘National Savings’and delegating Key ManagementPersonnel appropriately.• Evaluating business activity andprudent risk management policiesof the Bank thus ensuring the safetyand soundness of NSB.• Infusing and accommodating newideas and maintaining cordialrelationships at Board and SeniorManagement levels.NATIONAL SAVINGS BANK . ANNUAL REPORT 2012