PASHA BANK ENG 20

PASHA Bank has established an equilibrium policy regarding stakeholders in order to tackle any potential conflicts of interest among them in a balanced manner within the framework of the Corporate Governance Policy. The Bank follows the general principles and code of practice defined in the Conflicts of Interest Policy in managing potential conflicts of interest among stakeholders as described below, and implements the measures set forth in the aforementioned policy to prevent conflicts of interest. · Conflict of interest between the Bank and its customers; · Conflict of interest between the Bank and its employees; · Conflict of interest between employees and/or functions; · Conflict of interest between customers; · Conflict of interest between the Bank’s employees and customers. PASHA Bank announces to the public its Conflict of Interest Policy and Corporate Governance Policy by publishing the same on the corporate website. The Audit Committee conducted a risk assessment on the support services procured by the Bank; and prepared an evaluation report on whether or not any situation has emerged in a way to prevent or pose a risk for the effective and efficient functioning of the Bank’s internal systems or performance of internal control or internal audit activities in procurement of support services; as well as whether or not the qualified shareholders of, and managers authorized to represent, the support service organizations continue to meet the criteria required by law. The committee submitted the report to the Board, and monitored the efficiency of the services performed by support service organizations regularly. No conflict of interest was found in the evaluations made by the Committee. Consultancy services regarding ICAAP and Internal Credit Risk Rating Model were received by the Risk Management Committee within the period, and no conflict of interest or any other situation that may prevent service procurement or harm the independence of the firm was encountered. Measures Intended to Prevent Conflicts of Interest 66 Annual Report 2020 PASHA Bank Information on Management and Corporate Governance Practices