Risk management and capital adequacy

The Bank consequently follows conservative risk policy. The main risk exposure of the Bank is related to credit risk. In accordance with the approved Risk Policy, the Bank takes very limited or no market risk positions.

Risk Management Department of the Bank is responsible for overall risk management in Bank. Internal Audit Department of the Bank is liable directly to Supervisory Board and provides independent control of risk exposures and ensures all risk management procedures are observed.

There are 3 (three) committees in the Bank meeting on a regular basis to manage credit, financial and operational risks:

• Risk management committee - responsible for risk management in the Bank in general and operational risk and contingency planning in particular. Chaired by Chairman of the Board of Directors;
• Credit committee – responsible for management of credit risk of the Bank. Chaired by senior management depending on the level of credit committee.
• Asset and Liability Management Committee (ALCO) – responsible for liquidity risk, interest rate risk, foreign currency risk and market (position, settlement, counterparty) risk management. Chaired by Deputy Chairman of the Board of Directors;