First Investment Bank - Corporate Governance

Investor Information

Corporate Governance

To First Investment Bank good corporate governance means reaching its strategic goals and attaining long-term sustainable results on behalf of its shareholders, lenders, employees, clients and the public in general.

Fibank’s governance has been set up on the basis of internationally recognised corporate governance standards effective in the European Union and the National Corporate Governance Code, in compliance with the changes introduced in the regulatory and economic environment, and in line with the increased capacity and significance of Fibank in the country’s financial market.

Being a public company and issuer of financial instruments, First Investment Bank complies with the principles of transparency, equality, accountability, and objectivity which constitute key elements of its Programme for the Implementation of Internationally Recognised Good Corporate Governance Standards. They are also at the heart of its business practice and facilitate the establishment and functioning of effective controls and risk management, timely compliance with legislative changes and the disclosure of information to the market. There are written rules and procedures for preventing conflicts of interests and the use of internal information, for preserving banking and commercial confidentiality, preventing money laundering, the financing of terrorism and financial malpractice.

Fibank’s corporate governance is a system with clearly defined functions, rights and responsibilities at all levels: the Supervisory Board, the Managing Board, structures at the Head Office and the branches.

First Investment Bank has a two-tier management system, comprising the Supervisory Board and the Managing Board.

The Supervisory Board does not participate directly in the Bank’s management. The Supervisory Board elects and discharges members of the Managing Board, and approves the major strategic decisions of the Bank. In 2007 the Supervisory Board had 20 meetings.

The Managing Board carries out the management of the Bank by resolving all issues within its line of business, except those within the exclusive competence of the General Meeting of Shareholders or the Supervisory Board. The Managing Board of Fibank holds sessions every week.

The specialised internal audit service (SIAS) audits all the activities of the Bank on a regular basis. It has the power to report directly to the Supervisory Board in the event of established significant irregularities. SIAS exercises control as to whether the effective regulatory provisions and internal banking requirements are observed in order to assist the managing bodies in their decision-making.

The Bank is managed in accordance with current local legislation and the Bank’s statutes, which provide for the shareholders’ rights, ownership registration, share transfer, as well as the regular preparation and presentation of information regarding the Bank’s financial position and corporate status. Being a bank operating in an EU member state, Fibank complies in its activities with the requirements of European Union legislation.

The annual and semi-annual financial statements of Fibank are audited by an independent auditor, and in order to ensure transparency and to enable all interested parties to familiarize themselves with the results of Fibank, the reports of the Bank are available free of charge in both English and Bulgarian on its website.

First Investment Bank’s Programme for Implementation of the Internationally Recognised Good Corporate Governance Standards was adopted by the Bank’s Managing Board (MB).

The objective of the programme is to outline the guidelines, main principles and requirements for maintenance and improvement of the efficiency, organization and methods of management of First Investment Bank AD (Fibank) in compliance with the internationally recognized standards of good corporate governance, taking into consideration the changes in the regulatory and the economic environment, and the increased capacity and significance of Fibank on the Bulgarian financial market.