Corporate Governance Principles

Transparency

Transparent operations and reporting play a crucial part in building up investors’ confidence. Accordingly it is one of the main goals of VAB Bank that the financial figures fairly reflect the results of its operations.

Timely and accurate disclosure is made on all material matters regarding the Bank, including the financial standing, performance, ownership, and governance of the company.

As a result, for the fourth consecutive year VAB Bank ranks among the top 5 most transparent banks in Ukraine according to the survey conducted by Standard & Poor’s Corporate Governance Services jointly with the Financial Initiatives Agency. In 2009, S&P recognized VAB the most transparent bank among 30 largest Ukrainian banks. VAB Bank’s total transparency scored 71.4%, setting a historical record in the Ukrainian market. The Bank’s disclosure of “Ownership Structure and Shareholder Rights” category information matches the highest international practice. In addition, S&P remarked VAB Bank’s belonging to an international financial group, the Bank’s proactive advance into the Ukrainian market through creation of a favorable image that rests on confidence and information transparency.

Integrity

The Bank aligns the interests of a wide range of different constituencies such as management, employees, shareholders and creditors as well as takes into account the communities within which they operate.

The Bank facilitates the dialog and open discussions between the Management and Supervisory Board and ensures that all stakeholders are treated equally.

Honesty

VAB Bank has always been diligent in maintaining compliance with its established financial accounting policies, which are consistent with requirements of the Ukrainian Accounting Standards and International Financial Reporting Standards (IFRS) as well as reporting its results with objectivity and the highest degree of honesty.

Corporate management

The Bank complies with the standards of good corporate management common in international business practice that ensures effective monitoring of management by the Board and the Board’s accountability to the Bank and the Shareholders.

The Bank promotes ethical and responsible decision making that implies that the Board should act on a well-informed basis, in good faith, and in the best interest of the Bank.