Techcombank’s targeted Corporate Governance Model is designed on the principles of transparency and efficiency, clearly separating governance and management to maximise the effectiveness of the different roles and responsibilities. The responsibilities of the Board are particularly important, setting strategic direction, supervision protocols and corporate governance. We’ve strengthened the governance mechanism for all key areas of the Bank to match the developmental status of the organisation. Shareholders, investors, and stakeholders can invest safely and be proud of their association with Techcombank.
In 2019, our corporate governance structure was implemented and updated according to the roadmap approved by the Board of Directors. It provides the basis for the transformation of our business model and daily operations, and for the adoption of international best practices and standards including OECD, IFC and COSO guidelines. In the past year, the Bank actively researched and applied the Best Practice-based Corporate Governance Code, issued by the State Securities Commission of Vietnam in collaboration with IFC. To better meet the regulations of listed public companies and improve corporate governance practices, the Bank has appointed a Corporate Secretary. They will support the decision-making processes of the Board of Directors, ensuring compliance with legal regulations and Techcombank‘s Charter. The Corporate Secretary will also consult the Board of Directors on legal and risk issues in operational and business activities.
Techcombank commits to building and operating its corporate governance structure to meet the legitimate requirements of stakeholders. For the interests of shareholders and investors, our appropriate Governance and Management team and our information transparency mechanism help us maintain an effective and flexible structure within which the business can achieve attractive profits in the range of managed risks. For local regulators, the Bank’s corporate governance structure complies with all laws and we have a clear separation of governance and management responsibilities, thus helping improve broader control of the financial/banking system. For customers, by proactively setting up levels to supervise and guide the Bank’s key activities, we can also better serve the needs of our customers and ensure their rights when they use Techcombank’s products and services.
In order to enhance governance effectiveness and orientation of the Board of Directors, the General Assembly of Shareholders selected and elected members for the Board of Directors 2019–2024 term. The elected members have international experience, diversified expertise, the knowledge and capacity to supervise key areas of the bank most effectively, lead the Bank expertly through market fluctuations, and continue to strengthen its leading Bank position in Vietnam, going towards competition in regional markets.
In 2020, Techcombank will continue on our transformational journey, aiming to be a digital bank of the future. For sustainable development during the transformation process, the update of our governance/management structure will be one of our top priorities. The revised structure will support effective and rapid decision-making processes and increase management efficiency, helping to meet customer needs better and ensuring the rights of shareholders and stakeholders.
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2019 marked the third consecutive year that Techcombank maintained its leading position in the effectiveness index of the entire Vietnamese banking industry. It continues to achieve record operating income and profit before tax. This confirms that the Bank’s business transformation strategy is the right one; not only meeting customers’ needs, but also becoming a pioneering bank in leading the financial lives of Vietnamese people.
The Vietnamese legal environment continues to evolve, requiring internationally practised corporate governance principles. Techcombank has proactively updated its corporate governance structure, ensuring absolute compliance with the provisions of Vietnamese law and meeting international standards. The Board of Directors has approved the principles of the Bank’s corporate governance structure. This will deliver on our management level’s commitment to building and operating the Bank based on the governance/management transparency principles, and with clear determinations of rights, responsibilities and authorisation at all levels.
Management committees have been established and put into operation with distinctly defined functions, clear separation of responsibilities and lines of authority to ensure compliance with guidelines and provisions of laws. In addition to current committees that have been set up to enhance the governance quality covering risk management, capital management and liquidity, the Board of Management has proactively proposed to enhance corporate governance by establishing new committees, which focus specifically and more strategically on supervising, interacting and better managing key issues of the Bank. These governing bodies help us bring outstanding value to customers and cement a sustainable governance structure to underpin our progression of being an even stronger organisation.
Entering the second phase of our transformation journey, Techcombank is aiming for digitalisation of all services, inside and outside the Bank. In 2020, we will strongly maintain our commitment to execute the Bank’s corporate governance principles and focus on building the targeted corporate governance structure, according to the deployment roadmap until 2023. In particular, at management level, including the Board of Management and its affiliated committees, we will work tirelessly to increase operational effectiveness in key areas of the Bank, optimising our organisation’s resources to bring about the most comprehensive and reliable customer service.
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