Corporate Governance

Corporate governance is the system of rules, practices, and processes by which a bank is directed and controlled. It encompasses the relationships among its Board of Directors, its shareholders, various other stakeholders and a Bank’s management. Effective corporate governance ensures that a bank is managed with transparency, accountability, and in the best interests of all stakeholders. It is vital for maintaining the trust of investors, the integrity of the organization, and its long-term success.

At MCB, we are deeply committed to the principles of robust corporate governance. Our Board of Directors, executive management, and employees collectively uphold the highest standards of ethical conduct, accountability, and transparency. This commitment is reflected in our corporate governance framework, which is designed to ensure that our operations are in line with the best interests of our stakeholders, including shareholders, customers, and regulatory bodies.

Our Board of Directors comprises a diverse and highly experienced team that provides strategic direction, oversees risk management, and ensures compliance with all applicable laws and regulations. They play a vital role in appointing and evaluating senior management, including the CEO, and in defining our organizational mission and vision.

MCB’s strong corporate governance practices directly contribute to the continuous improvement and success of the Bank. They provide the foundation for ethical decision-making, safeguarding our reputation, and ensuring the prudent management of resources. Our governance framework enhances accountability and transparency, promoting investor confidence and loyalty.

Furthermore, it enables us to adapt to dynamic market conditions and regulatory changes effectively. By upholding the highest standards, MCB has not only gained the trust of our shareholders but also established itself as a reliable financial institution for our customers. As outlined in this annual report, MCB’s commitment to sound corporate governance is a driving force behind our ability to thrive in an ever-evolving financial landscape and deliver value to our stakeholders.

Board Committees

Board committees are formulated in order to support the Board on different specialized areas and ensure smoother functioning of the Board. MCB Board comprises the Members from widely diversified sectors ranging from manufacturing, trading, financial services, import and exports, construction, engineering, public administration etc. Board committees are composed of an appropriate mix of independent and non-independent directors who bring a wealth of experience and expertise to their respective areas of focus.

Our Board committees are formulated to address specific aspects of corporate governance, and they include Audit Committee, Risk Management Committee, Credit Committee, Remuneration & Nomination Committee and IT Steering Committee. This diversity of perspectives ensures that the best interests of our bank and stakeholders are continually upheld.

The management of MCB is closely aligned with the guidance and recommendations of these Board committees.

Board committees provide valuable oversight, ensure compliance with regulatory requirements, and promote a culture of accountability. These committees collectively contribute to the bank’s commitment to sound corporate governance, further detailed in this annual report.

Roles of Committees

Board Audit Committee (BAC)

BAC provides a structured, systematic oversight of the organization’s governance, risk management and internal control practices. The committee assists the board and management by providing findings/observation reports, advice and guidance on the adequacy and effectiveness of control measures in the organization. BAC also oversees financial reporting and external audit matters, supporting to maintain the highest standards of integrity of the financial reports.

Board Risk Management Committee (BRMC)

BRMC oversees and review on the establishment, effectiveness, and implementation of a risk management framework. It also defines different risk appetite and sectoral exposures in business and reviews the actual performances. It ensures that the transactions are undertaken with due consideration of associated risks and risk mitigation tools. BRMC also review the outcome of the undertaken business from risk perspectives and take corrective actions, when needed.

Board Credit Committee (BCC)

BCC oversees the credit and lending policies and strategies and objectives of the Bank, including oversee the credit risk management, review and approve credit related products, review the quality and performance of the Bank’s credit portfolio and take decision on credit proposals.

Renumeration and Nomination Committee (RNC)

RNC is for reviewing and approving the employee related policies, employee remuneration and facilities, requirement of level wise number of employees including expats and management level employees. The committee deliberate, review and make prudent decisions on HR matters viz a viz market standards and practices in accordance with bank’s long-term strategy/vision and encourage the employees to adopt to the professional culture in the Bank.

Information Technology Steering Committee (ITSC)

ITSC is for setting the IT Strategies and Policies. The Information and Technology Steering Committee is responsible for establishing strategies and policies related to technology that are key to the long-term development of the Bank’s services. Assessing the bank’s technical capabilities; Responsible for setting technology and information priorities and overseeing and guiding the Bank’s Core Banking system, other system capabilities, assessing the IT related risks and building risk mitigants. It also receives and review updates on major IT performance, IT priorities, IT budgets and IT system performances.