ADFIAP Code of Conduct


This Code of Conduct is in pursuance of the Istanbul (Turkey) Declaration of the General Membership Meeting held in May 1998. It aims to establish a cachet for ADFIAP in the banking community as an Association of institutions with high standards of integrity and ethics in the conduct of their business as well as to serve as guiding principles of the Association and its members in their undertakings.

The Code comes in three parts:

PART I: Statement of Common Values and Beliefs of the Members of the Association

PART II: A Framework of a Code of Conduct for Member-Institutions (For their Adoption)

PART III: A Framework of a Code of Conduct for Officers and Staff of Member-Institutions (For their Adoption)

This was reviewed by the following members of the Board of Directors and Honorary Members of ADFIAP as well as associates whose views and comments were incorporated in the Code where appropriate:

ADFIAP Code of Conduct Drafting Committee

Board of Directors

  • Datuk Mohamad Saleh bin Mohd. Ghazali, Chairman of the Board
    (representing Bank Industri Malaysia Berhad)
  • Mr. Isoa Kaloumaira, Board Member
    (representing Fiji Development Bank)
  • Mr. Kartono Minhar representing Mr. Arbali Sukanal, Board Member
    (representing P.T. Bank Pembangunan Indonesia)

Honorary Members

  • Mr. H.A. Kuntoadji (Indonesia)
  • Mr. John W. Fletcher (Australia)
  • Mr. Salim bin Tan Sri Osman (Malaysia)
  • Mr. William Diamond (U.S.A.)


  • Mr. Khalid Siraj, Representative to ADFIAP (World Bank)
  • Mr. Frans Baneke, Secretary General (Association of European Development Finance Institutions)
  • PART I


    We subscribe to the belief that the development of the country is the prime goal of development financing and that the ultimate beneficiary of development is mankind.

    We adhere to the principles and practice of development banking and in the Association’s quest for excellence in the implementation thereof as the means to ensure sustainable development.

    We value development banking as a profession and, as such, subscribe to the highest standards of ethical behavior, supporting all actions that protect and promote the integrity of the institutions and its people.

    We believe that in order for a financial institution to attain its development mission it must be financially viable, stable, and capable of providing adequate returns to its stakeholders.



    1. As a financial institution interested in and devoted to the financing of development, we are engaged in the business of mobilizing funds to finance businesses or projects that are pioneering and innovative in nature in nature and those that contribute to the long-term development objectives of the country.
    2. Besides development financing we may also be mandated by law to also undertake commercial banking, insurance, leasing, security underwriting, stock brokering, micro-finance or other financial activities that support our mission of financing development.
    3. Our operations particularly in granting development loans and services will take into account and will be largely consistent with national rather than government priorities established by the government development authorities. In the absence of these guidelines, the national interest is to be determined by our Board of Directors according to the needs of the community or the country, and not according to their personal or political interests.
    4. In appraising development loans, we give first consideration to the long-term viability of the business or project rather than depending primarily on collaterals offered as security for the loan. We also recognize, that due consideration should be given to the project’s contribution to society and to the improvement and protection of the environment.
    5. We treat all sectors of society fairly in the dispensation of services which they may require and are qualified to receive regardless of creed, color, social status or political affiliation. To be fair means not to deny any meritorious support, financial or any other form of assistance, which they may require.
    6. We are transparent in the conduct of business. To be transparent means avoiding conflict of interest, rejecting favors or gifts for services, and abiding by the laws and regulations for undertaking financial transactions. When in doubt, we will consult with appropriate authorities with supervisory functions over us.
    7. We provide accounting of our institution’s development efforts, though our annual and other reports, which are public documents describing the accomplishments of the institution, and the resources committed to development. We are audited by qualified professionals and all regulatory requirements are complied with.
    8. We treat officers and employees fairly; compensate them equitably; respect their cultural values and beliefs; equip them with a development mind and the skills to effectively and efficiently carry out their development financing functions; and discipline those who commit all forms of graft, dishonesty and corruption.
    9. We aim to operate with utmost efficiency for the benefit of the stakeholders and the public, in general. Our institutions have a business objective and are not social development organizations.



    1. To use the institution’s resources-money, time, assets and people-in the most effective and efficient manner.
    2. To adhere to the institution’s own code of behavior and comply with its rules and regulations governing discipline.
    3. To keep all information confidential and avoid unauthorized disclosures.
    4. To comply with banker’s and /or other professional code of ethics and prevailing laws and regulations in respective member countries.
    5. To be accountable for own decisions and responsible for actions arising from the effect of these decisions.
    6. To provide responsive services to clients, especially to those who have the least access to resources for development.
    7. To avoid unethical behavior or corrupt practices and to maintain the integrity of the institution at all times, including the reporting to appropriate authorities, actual cases of or attempts to defraud the institution or defame its integrity and good name.
    8. Finally, to implore the guidance of the Divine Providence for the attainment of the institution’s development mission and to give thanks for its achievements.