Policy on Corporate Governance

CB Bank recognizes the legitimate rights of shareholders and observes the rights of other stakeholders (for instance, employees, suppliers, community, competitors, creditors, etc.) and will ensure that such rights or mutual agreements are protected and well observed.

	(a)		CB Bank will ensure that shareholders are treated fairly and appropriately in accordance with the laws and agreements made with shareholders and will treat them equitably in accordance with good corporate governance guidelines and principles.
	(b)		CB Bank will treat its customers as its business partners to strive for mutual prosperity.
	(c)		CB Bank will contribute to community service with the spirit of friendship and mutual cooperation.
	(d)		CB Bank will treat all stakeholders in accordance with the principles of honesty and integrity.

CB Bank will also support the roles of stakeholders which will lead to co-operation between the Bank and stakeholders in creating wealth, financial stability, and the sustainability of business.

	(a)		CB Bank recognizes the importance of the disclosure of information that will ensure the proper and timely disclosure of information.
	(b)		CB Bank prepares financial reports in accordance with generally accepted accounting principles. It also appoints an independent certified auditor to audit and give opinions on the financial reports in accordance with the account auditing standards.

The duties and responsibilities of Board of Directors in conducting the business is to meet the objectives of the Bank as well as to maximize value for the Bank and its shareholders.

The Board is composed of executive directors, non-executive directors and independent directors. The number and the composition of the board will be adjusted as necessary to correspond to the changing circumstances and conditions.

	(a)		The Board of Directors is made up of prominent figures respected for their leadership with varying educational backgrounds, expertise and skills.
	(b)		The Board has the duties and responsibilities of providing a vision, policies and direction in conducting and monitoring the Bank's business to be in compliance with the law, the Bank's objectives and regulations, and the resolutions of the shareholders' meetings.
	(c)		The Board of Directors convenes regular meetings every (1) month and may call for additional meetings as necessary and appropriate.
	(d)		During each Board of Directors' meeting, the directors are able to discuss, inquire, express opinions and make decisions freely.
	(e)		CB Bank limits the holding of positions in other companies by its Directors and the President in accordance with CB Bank’s requirements.

CB Bank will establish an internal control system to ensure the Bank meets acceptable standards.

(a)

The Audit and Control Division, under the supervision of the Audit Committee, is responsible for auditing the working systems, data and the operation of various working units in the Bank to ensure that they comply with the regulations of the authorities and the Bank, as well as assessing the adequacy and efficiency of the Bank's internal control system.

CB Bank has established an internal working unit to support the Risk Management Committee and to help adjust the Bank's risk management systems to be consistent with changes in circumstances as appropriate.

CB Bank will encourage the directors, employees and those persons acting on behalf of the Bank to perform their duties in accordance with the established code of conduct and business ethics which includes the following basic principles:

	(a)		To perform one's duties with honesty, integrity, moral principles and responsibility.
	(b)		To safeguard confidentiality, and not to make wrongful use of inside information or confidential information for one's own or any others' benefits.
	(c)		To prevent and avoid dealings or transactions that may lead to conflicts of interest.
	(d)		To act as a professional with knowledge, expertise and due care.