Bank Islam Integrated Annual Report 2020

Strategic policy matters Financial results and declaration of dividends Significant operating and credit policies ĄȈɰȟ ƃɥɥljɽȈɽlj ɰljɽɽȈȶǼ Capital management plan ʍɽȃɁɨȈɽʰ ȢȈȴȈɽɰ ȶʰ ƺɁɨɥɁɨƃɽlj ljʯljɨƺȈɰlj ʥȃȈƺȃ ȈȶʤɁȢʤljɰ ƃƺɧʍȈɰȈɽȈɁȶ Ɂɨ divestment or strategic interest Major acquisition of capital expenditure ɥɥɁȈȶɽȴljȶɽ ƃȶǁ ɨljȴʍȶljɨƃɽȈɁȶ Ɂǹ AȈɨljƺɽɁɨɰӗ ČČ: ȴljȴƹljɨɰӗ the CEO and key Senior Management officers Entry into any related party transaction ȶʰ ȶljʥ ɁʍɽɰɁʍɨƺȈȶǼ ɥɨɁɥɁɰƃȢɰ PRINCIPLE A: BOARD LEADERSHIP AND EFFECTIVENESS Within a framework of prudent and effective controls, the Board is responsible for the overall leadership of the Bank, for promoting long-term sustainable growth, financial soundness, providing di r ec t i on and ove r s i ght to the management of the business and operations. The Board Charter The Board is guided by the Board Charter in discharging its duties and responsibilities effectively. The Board Charter sets out the principles and guidelines that are to be applied by the Board. The delegation of authority as set out in the Board Charter is clear and ensures that the line of authority is in line with the legal and regulator y requirements. The Board Charter is reviewed and updated from time to time to reflect relevant changes to the pol icies , procedures and processes as well as amendments to rules and regulations to ensure the document remains relevant and consistent with the applicable rules and regulations and recommended best practices. The Board Charter and the Terms of Ąljǹljɨljȶƺlj Ɂǹ ɽȃlj 9Ɂƃɨǁ ƃȶǁ ɽȃlj 9Ɂƃɨǁ Committees are available on the Bank’s corporate website, www.bankislam.com . Matters Reserved for the Board ěȃlj 9Ɂƃɨǁ :ȃƃɨɽljɨ ƃȶǁ ɽȃlj 9Ɂƃɨǁ Ɂǹ AȈɨljƺɽɁɨɰԇ ěÝĄ ɥɨljɰƺɨȈƹljɰ ɽȃƃɽ ɽȃlj ǹɁȢȢɁʥȈȶǼ matters are specifically reserved for the Board: Board Leadership ȶ ljǹǹljƺɽȈʤlj 9Ɂƃɨǁ Ȉɰ ȟljʰ ɽɁ ɽȃlj ljɰɽƃƹȢȈɰȃȴljȶɽ ƃȶǁ ǁljȢȈʤljɨʰ Ɂǹ ƃ ƺɁȴɥƃȶʰԇɰ ɰɽɨƃɽljǼʰӝ The Board therefore continually seeks to improve its effectiveness by providing direction to the Management, demonstrating ethical stewardship and creating a performance culture that drives value-creation among others. ȢȢ 9Ɂƃɨǁ ȴljȴƹljɨɰ ljʯljɨƺȈɰlj ɽȃljȈɨ ɥɁʥljɨɰ ǹɁɨ ƃ ɥɨɁɥljɨ ɥʍɨɥɁɰlj ƃȶǁ Ȉȶ ǼɁɁǁ ǹƃȈɽȃ in the best interest of the Bank. In directing or managing the Bank’s business and affairs, they exercise reasonable care, skill and diligence by applying their knowledge, skill and experience. CORPORATE GOVERNANCE OVERVIEW STATEMENT SECTION A: HOW THE BOARD OPERATES 130 Accountabi l i t y Financ ial Statement s