NLB Group Corporate Governance

NLB, as the parent bank and in line with established business principles, provides corporate governance for the NLB Group by following fundamental doctrines of corporate administration and management as well as other standards that ensure effective business supervision.

In December 2007, the NLB Management Board adopted the Corporate Governance Policy for the NLB Group. The policy provides guidelines for the comprehensive administration and management of the Group as one of its essential business purposes. It also defines the roles, competencies, expertise and responsibilities of individual bodies and organizational units to ensure they function cooperatively and harmoniously in their efforts to achieve the Bank’s business objectives.

NLB, as the parent bank in the NLB Group, provides corporate governance for the NLB Group by following its own internal regulations and operating, in compliance with the laws of the Republic of Slovenia and the countries in which the NLB Group members operate.

NLB has an effective and well-developed corporate governance system that operates:

In accord with fundamental corporate rules and through the various agents of the NLB Group members:

• by voting at the General Shareholder Meetings of the NLB Group members;
• by appointing representatives of the NLB to supervisory bodies;
• by proposing executive appointments for the members of the NLB Group;
• by the cooperative participation of NLB representatives in various committees and commissions of the NLB Group members.

Through appropriate mechanisms for effectively monitoring operations, harmonizing business standards and distributing information within the Group:

• by the process of standardization and harmonization;
• by business area in accord with the model and principles for business and professional collaboration of activities within the NLB Group;
• by working with the NLB Assets and Liabilities Management Committee;
• by convening strategic conferences (all the NLB Group members and discuss priorities);
• by regional meetings where all members of the NLB Group in that country gather to discuss, develop and coordinate the Group’s priorities for their respective markets.

 

The NLB Internal Audit Center and external supervisors (Bank of Slovenia, external auditors) provide additional supervision for the NLB Group.

To oversee corporate governance within the Group, the NLB established:

NLB Group Asset and Liability Committee, a consulting and regulatory body of the NLB Management Board that analyses the status, changes and trends of total assets in the NLB Group and its individual members. Their assignments are:

• plans and business results of the Group and its individual members;
• compliance with regulations and NLB requirements for treasury services;
• risk management;
• capital adequacy policies of the NLB Group;
• secure funds for members from NLB, the NLB Group, international financial institutions and other commercial banks.

NLB Group Management Center is an organizational unit that provides the professional support to NLB Management Board to help them implement their managerial and supervisory functions. Primarily this occurs by coordinating administrative and supervisory tasks as well as directing acquisitions and establishing new companies in the NLB Group.

NLB Group
Annual Report 2007