Corporate Governance Approach

As VakıfBank, we continue our operations in harmony with the Corporate Governance Principles, in order to protect all stakeholders and in particular our shareholders, to act in line with their interests, and to create sustainable value for our country while growing. Accordingly, we continue our activities in line with the principles of equality, transparency, accountability and responsibility and in compliance with the Banking Law, Capital Market Legislation, Turkish Commercial Code and other relevant regulations.

In VakıfBank, the top management is structured in line with the Corporate Governance Principles. VakıfBank Board of Directors consists of nine members in total, including Chairman, Deputy Chairman, General Manager and six members. In accordance with the Corporate Governance Principles, there are three independent members in the Board of Directors. The Chairman and General Manager titles are held separately within the Board of Directors. The Chairman of the Board of Directors does not have executive duties as dictated by the regulations of the Banking Regulation and Supervision Agency.

The Bank is in compliance with the mandatory principles under both the Corporate Governance Communiqué and Banking Law No. 5411. Related party transactions are mandatory to be approved by the Board of Directors. As per the Article 50 of Banking Law No. 5411, it is obliged that in cases where loans will be made available to real and legal persons in the bank’s risk group, the necessary decision be taken by two thirds majority of the board of directors’ members and that the loan conditions not vary from the loans made available to other persons and groups and from market conditions, in favor of the borrower.

We believe that risks should be managed with proactive approaches, situations that may result in conflicts of interest should be prevented and ethical banking practices that increase transparency should be exercised for the implementation of effective corporate governance. We share information and documents with stakeholders explicitly through the Investor Relations section on our website. In addition to the financial risks that affect or may affect our organization, we also monitor non-financial risks such as the risks concerning our reputation and the environment. We manage risks through the internal control systems we have established and developed in accordance with national legislations and international regulations.

VakıfBank is against all kinds of bribery and corruption and also is determined to comply with the relevant laws, regulations and principles. Receiving bribes or bribing can never be accepted regardless of its purpose. It is essential that the business relationships shall not be continued with third parties (outsourcing companies and business partners) who wish to get service from VakıfBank via bribery. We take a “zero tolerance” policy to bribery and corruption. For the purpose of ensuring that employees adopt the principles of the Policy and works in compliance with these principles, continuous trainings are delivered. In case of a violation of the policy against Bribery and Corruption, disciplinary punishments may arise depending on the nature of the case. In such cases, the Board of Inspectors examines the case, and in case of non-compliant behavior, necessary sanctions are applied in accordance with the legislation.

Fighting the laundering of criminal proceeds, financing of terrorism and preventing the financial system from being used by criminals are among our primary areas of focus. Our employees are prohibited from engaging in any actions that would be considered as laundering of crime proceedings or would facilitate such activities.