Annual Report 2012 - National Savings Bank

79ROOTED IN OUR HERITAGEGOVERNANCE REPORT3 (6) Board Appointed Committees(h)(7) (i) &(ii)The Committee shall establish a compliancefunction to assess the Bank’s compliance withlaws, regulations, regulatory guidelines, internalcontrols and approved policies on all areas ofbusiness operations. A dedicated compliance ofcerselected from Key Management Personnel shallcarry out the compliance function and report to thecommittee periodically.The Board shall take the necessary steps to avoidany conicts of interest that may arise from anytransaction of the Bank with any person,3 (7) Related Party Transactions3 (7) (iii) The Board shall ensure that the Bank does notengage in transactions with related parties asdened in Direction 3 (7) (i) above, in a mannerthat would grant such parties ‘more favorabletreatment’ than that accorded to other constituentsof the Bank carrying on the same business.3 (7) (iv) A bank shall not grant any accommodation toany of its Directors or to a close relation of suchdirector unless such accommodation is sanctionedat a meeting of its Board of Directors, with not lessthan two-thirds of the number of directors otherthan the director concerned, voting in favour ofsuch accommodation.Compliance function has been established and theChief Risk Ofcer has been appointed as ComplianceOfcer (Re-designated as Head of Risk & Compliance-HRC), until a Compliance Ofcer is appointed andHRC submits reports on compliance to the monthlycompliance meeting and to IRMC on a quarterly basis.Complied withTransactions (if any) carried out with Related Parties inthe normal course of business and disclosed in Note 39 tothe Financial Statements ‘Related Party Disclosures’ onpage 242.Complied withAccommodations granted to the Directors are governedby the NSB Act and Section 20 of the Banking Act.The Bank has not granted any accommodations toDirectors as per the disclosures made at Board meeting.Complied withNATIONAL SAVINGS BANK . ANNUAL REPORT 2012