Code of Ethics

CHAMBER OF THRIFT BANKS – CODE OF ETHICS (AS AMENDED)*

Preamble

The member banks of the Chamber of Thrift Banks, believe and recognize, that only a sound, safe and stable banking sector can be a tool towards economic and social development of the country. With the Help of the Almighty God, the guidance of the Government through the Bangko Sentral ng Pilipinas, and the interest of the society as a primordial concern, the Chamber of Thrift Banks, through its Board of Trustees, Officers and its constituent membership, have unanimously adopted this CODE OF ETHICS to set the principles on which all their actions will be based, establish a set of conduct and obligations to regulate their dealings with one another and the public and accept the same without any mental reservation as a set of binding obligations with the end-view of further strengthening the banking sector and the national economy as a whole.

Article I – Statement of Principles

Section 1.1. Thrift banks, being infused of capital from the public at large, must realize that their role in the progress of society is not merely an accident of business but a social duty. Each member bank must conduct its corporate or business affairs observing the highest degree of competence, integrity, and probity.

Section 1.2. Thrift banks accept that they have a responsibility to the society and shall, at all times, obey the prevailing laws and regulations especially those that promote transparency, prohibit unsound and unsafe banking practices and ensure good corporate governance, and violation of the foregoing may cause the termination of their membership from the Association.

Section 1.3. Each member bank has a responsibility to each other, the Chamber of Thrift Banks (hereinafter referred to as the “Association” for brevity), the general public and the society as whole. All its trustees, officers and employees are duty-bound to uphold and obey the Constitution and By-Laws of the Association as well as this Code of Ethics, including all the amendments thereto.

Article II – The Member and the Association

Section 2.1. Loyalty to the Association – Trustees, officers and employees of member banks must be loyal to the Association. Should they have serious reservation against any policy, directive or practice of the Association, they must first seek clarification and guidance from within the Association in order to have the matter clarified.

Sub-section 2.1.1. Trustees, officers of the Association and the member banks shall obey and uphold the Constitution and By-Laws of the Association, and thus, not counsel or abet to activities aimed at defying or undermining the same.

Sub-section 2.1.2. Trustees, officers of the association and the member banks shall conduct themselves with courtesy, fairness and candour towards their co-member/s and professional colleagues. In their professional dealing with fellow members, they shall not use language which is abusive, offensive or otherwise improper. They shall also respect the authority of the Association and obey its decisions.

Sub-section 2.1.3. Trustees, officers of the association and the member banks shall not engage in unlawful, dishonest, immoral or deceitful activities.

Sub-section 2.1.4. No Trustee, officers of the association and the member banks shall, for any corrupt motive or personal gain, encourage any controversy within the Association.

Sub-section 2.1.5. No Trustee, officers of the association and the member banks shall support the application for admission to the Association of any ban known to them to be unqualified for regulatory and other justifiable reasons.

Sub-section 2.1.6. It is understood that these prohibited acts shall be interpreted and viewed in their universally acceptable meanings and may be proven by substantial evidence.

Section 2.2. Willingness to Assist the Association – All member banks must be willing and be prepared to provide needed and useful resources, knowledge or information for the advancement of the Association and its objectives.

Sub-section 2.2.1. A member bank shall not withhold information which is useful to the banking industry in general and to the Association in particular. A member bank shall be answerable for suppressing such material information, unless prohibited by existing laws, rules and regulations.

Sub-section 2.2.2. A member bank shall, when the need arises, be willing to provide resources, knowledge or information to advance the cause and objectives of the Association, especially in initiating reforms in the banking industry and improving the banking services.

Section 2.3. Active Participation in Endeavors of the Association – All members banks should actively participate in the endeavors of the Association.

Sub-section 2.3.1. Member banks shall keep abreast of the developments related to the banking industry, attend and participate in seminars, symposia and other programs sponsored by the Association.

Sub-section 2.3.2. Member banks shall actively support in the dissemination of truthful and accurate information regarding banking practices as well as other matters of public interest. In this regard, they shall not use or permit the use of any false, fraudulent, misleading and deceptive information.

Section 2.4. Self-Aggrandizement or Self-Gratification – No Trustees, officer or member of the bank shall take advantage of the association’s resources, rights and privileges for self-aggrandizement or self-gratification.

Sub-section 2.4.1 No trustee, officer or member of the bank shall use the Association to advance their political ambition or political agenda of their clients nor their shareholders. Neither shall they use the good name of the Association in endorsing a political party or participating in any political convention or activity.

Sub-section 2.4.2. Membership to the Association is not a right but a privilege. As such, no trustee, officer or a member of bank shall give ground for any reasonable suspicion that they are or it is, utilizing the prestige of the office or stature of the Association for their personal interest.

Sub-section 2.4.3. Any trustee, officer or a member bank may be reprimanded, suspended or expelled from the Association for the commission of any act which is inimical and/or detrimental to the interest of the Association and/or member banks.

Article III – The Member Bank and the Society

Section 3.1. Duties and Obligations to the Society – A member bank must always recognize its duties and obligations to the society. It should not only work for the advancement of the Association, its respective institution and the banking system as a whole, but should also strive for the upliftment of all sectors of the society.

Sub-section 3.1.1. The banking industry is vested with public interest. Over and above profits, its main purpose is public service. Hence, the Association shall, at all times, uphold the integrity and dignity of the banking industry, bearing in mind its public responsibility through adherence of banking laws, regulations and policies.

Sub-section 3.1.2. Member banks shall not discriminate or deny their services to prospective clients solely on account of the latter’s race, creed, religion, political belief and/or social status.

Section 3.2. Compliance with Laws and Regulations – Member banks and the trustees and officers of the Association should strictly abide by and observe all laws, particularly banking laws, rules and regulations and avoid actions and practices that are inimical to the integrity of the banking system. They must provide true, accurate, timely and material data or information in support of needed future legislation in the field of banking.

Sub-section 3.2.1. As a citizen of the Republic of the Philippines, the trustees and officers of the Association shall, at all times, obey and uphold the Constitution of the land, respect and follow laws approved by the duly constituted authorities as well as ordinances passed by the local councils in which he resides.

Sub-section 3.2.3. Any trustee or officer of the Association may, at any time, be summoned by the appropriate committee of either Houses of Congress for the purpose of giving true, accurate, timely and material data or information in support of needed present and future legislation in the field of banking.

Sub-section 3.2.4. The association and its member banks should be aware that the government authorities requiring their presence, the information needed and any other assistance may impose the appropriate sanction or penalty on any of its trustees, officers or member representatives, who refuse to respect and obey any summons (duces tecum and/or testificandum) validly issued by the said authorities.

Section 3.3 Uphold the Integrity and Stability of the Banking System – Member banks should uphold the integrity and stability of the banking system and at the same time promote therein the dynamism necessary for national development.

Sub-section 3.3.1. Member banks have the responsibility of safeguarding the trust and confidence reposed by the public on the banking industry. As such, their main and primordial responsibility is to see to it that such trust shall never be tarnished or tainted. Hence, they must, at all times, be aware of the important role of the banking industry in nation building.

Member banks should uphold the integrity and stability of the banking system and at the same time promote therein the dynamism necessary for national development. Member banks must, at all times, ensure to promote good corporate governance, establish adequate and effective risk management policies and avoid engaging in unsound and unsafe banking practices as defined by the Bangko Sentral ng Pilipinas.

Article IV – Implementation and Procedure

Section 4.1. Complaints for alleged violations of this Code of Ethics shall be heard and handled by the Committee on Ethics in accordance with the rules of procedure as may be approved and adopted by the general membership of the Association.

Section 4.2. Decision of the Committee on Ethics shall be subject to the final approval of the Board of Trustees of the Association. All final and executory decisions and Orders relative to this Code shall be implemented by the Executive Director of the Association.

Article V – Sanctions

Violation of any provision of this Code of Ethics shall be subject to the imposition of the corresponding sanction to include but not limited to, warning, admonition, reprimand, suspension or expulsion, as well as the imposition of fine, if warranted.

Article VI – Interpretation

The provisions of this Code of Ethics shall be liberally interpreted or construed in order to give effect to its purposes.

Article VII – Amendments

Any provisions of this Code may be amended by a majority of votes of the members of the Board and ratified by two thirds vote of the general membership of the Association.