Doing the right thing is what we aim to do in all areas of our business – it guides our decisions.
Although Hodge Bank is a privately-owned entity, it aims to implement the highest standards of corporate governance. The following is a summary of the Bank’s corporate governance framework.
The Board has ultimate responsibility for the proper stewardship of the Bank in all its undertakings. It meets regularly throughout the year to discharge its responsibilities for all important aspects of the Bank’s affairs, including monitoring performance, considering major strategic issues, approving budgets and business plans and reporting to the shareholder.
A Board control manual has been adopted which describes the high-level policy and decision-making arrangements within the Bank. The manual includes a schedule of matters reserved to the Board together with those items delegated to directors and Board and executive committees.
The Board has established the following standing committees:
Executive management has primary responsibility for the implementation of the Bank’s strategy and the operation of the Bank’s internal financial control framework. It manages risk by means of relevant committees as described below.
The Management Board is responsible for the formulation and execution of the strategy, and day-to-day management, subject to specific limitations and constraints imposed by the Board, and meets regularly throughout the year.
The Committee meets quarterly and monitors the Bank’s risk management and internal control framework. It has specific responsibility for monitoring operational and conduct risks and for ensuring that appropriate training, policies and procedures are in place.
The Committee implements the policies of the Board with respect to liquidity and interest rate risk management and provides recommendations to the Board on strategies for managing these risks. It also monitors and controls new business pricing and treasury counterparty risk. The committee meets weekly.
This Committee is responsible for proposing a credit policy to the Board in respect of all equity release business. It also monitors the application of credit policy, and ensures that all responsible lending requirements are met.
The Committee is responsible for proposing a credit policy to the Board with respect to commercial lending and monitoring its application. It is also responsible for reviewing, challenging and if appropriate, approving credit proposals for new commercial lending business within its authority as delegated by the Board.
The Committee meets quarterly and monitors the adequacy and appropriateness of the Bank’s actuarial models and methods, and reviews proposed changes. It also monitors the Bank’s overall exposure to insurance risks in light of actuarial experience.