SME Bank operates with good corporate governance structure

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Having a good corporate governance structure is one of the hallmarks of a successful organization such as the Small Medium Enterprise Development Bank of Malaysia Berhad (SME Bank) which operates based on a sound and prudent manner.

As a bank mandated to developed SMEs to become the nation’s engine of growth, it has to operate under a sound corporate governance with the highest standard and practices, in line with the Bank Negara Malaysia’s (Central Bank of Malaysia) Guidelines on Corporate Governance. SME Bank’s good corporate governance also needs to be rooted in a corporate culture that reinforces ethical, prudent and professional behavior. This begins with the right “tone from the top”, where the example set by the board and senior management shape the core values for the Bank.

SME Bank’s Board of Directors is comprised of eight members of which six (6) are independent directors. The Board is chaired by an independent chairman. Out of eight (8) members, the Board of Directors is also represented by representatives from the Minister of Finance Incorporated (MOF) and Ministry of International Trade and Industry (MITI), respectively.

The Bank has established various Board of Directors committees such as Nomination Committee, Remuneration Committee, Risk Management Committee, Audit Committee, Asset Quality Review Committee and the Shariah Committee.

To further strengthen its day-to-day operation, the Bank has also established the following committees at management level: Senior Management Committee, Credit Investment Committee, Customer Service Quality Committee, Early Alert & Recovery Committee, Asset & Liability Management Committee, Information Technology Steering Committee and Management Operation Committee.

In order to further impart integrity conduct within the bank’s staff in tandem with the bank core values, the bank had designed the Corporate Integrity Pledge to show its commitment in upholding the Anti-Corruption Principles for corporations in Malaysia.

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