Governing Bodies

Russian Agricultural Bank regards good corporate governance practices as a key element for the Bank`s prosperity and financial success. An effective system of mechanisms and approaches (directing and controlling the Bank) ensures that decision-making processes are fast, transparent and results-oriented. It enables the Bank to effectively control risks, promptly react to any changes in the business or economic environment, and maintain a proper balance between shareholders’ interests and financial performance.

The Bank continues to adhere to previously established corporate governance principles which have proved to be appropriate and applicable. These are:

  • Disclosure and transparency;
  • The role and responsibilities of the Board;
  • Integrity and ethical behavior.

There are three committees operating under the Supervisory Board:

Audit Committee

Reviews the Bank`s accounting and risks policies, as well as the internal control environment.

Strategic Planning and Development Committee

Sets and supervises general and priority strategic objectives, makes recommendations on the Bank’s dividend policy and evaluates the Bank`s operational effectiveness.

HR and Remuneration Committee

Approves HR Policy and the remuneration policy for senior executives.

The Revision Commission

The Revision Commission is the body responsible for controlling the Bank’s financial and business activity. It carries out the revision of current operations’ compliance with the financial plan, analyzes the Bank’s financial position, evaluates the functioning of internal control and risk management systems, and checks the legitimacy of selected transactions.

The Revision Commission is elected according to an order of Rosimushchestvo.

The Commission is made up of three members and currently includes representatives of Rosimushchestvo, the Ministry of Agriculture, and the Presidential Executive Office.

Corporate Secretary

Corporate Secretary is responsible for ensuring procedures aimed at championing the rights and interests of the Bank`s shareholders. Participating in arranging the General Shareholders Meeting and Supervisory Board meetings and working out resolutions which need the approval of the Bank`s shareholder, the Corporate Secretary secures an effective cooperation process between the shareholder and the Bank`s management.

The Management Board is supported by a number of specialized committees and commissions, including, but not limited to:

The Strategy and Corporate Development Committee

This Committee develops proposals and recommendations for the Management Board and its Chairman and makes decisions to enhance governance at the Bank and across the Group in the following areas:

  • Strategic development;
  • Corporate governance;
  • Development of a functional model and organization structure;
  • Project activities;
  • Business process optimization.

The Credit Committee

The Junior Credit Committee

The Micro Credit Committee

The Credit Committee, the Junior Credit Committee, and the Micro Credit Committee implement the Bank’s credit policy and minimize credit risks. These committees are responsible for enhancing the quality of the Bank’s loan portfolio. They ensure that transactions subject to credit risk yield a return and that the Bank’s lending is effective, by introducing improved quality and quicker decision-making in the credit transaction process.

The Finance Committee

The Finance Committee coordinates multiple aspects of business planning, cost management, and pricing and profitability analysis of banking operations. It is also involved in improving the management of the Bank’s financial and business activities.

The Asset and Liabilities Management Committee (ALCO)

ALCO develops and makes decisions on asset and liability management related issues, including: operations to raise funding or allocate funds on the financial markets (securities and derivatives market, currency market, money market, stock market and OTC market, where the Banks raises funding and allocates its funds or currency assets, engages in securities transactions, and issues or redeems its debt obligations). ALCO’s competence also include distributing funds amongst Bank units, managing market risk (including interest and currency risks) and liquidity risk, and developing the Bank’s tariff and interest policy.

The Technology Committee

The Technology Committee reviews, coordinates, and settles disagreements related to the development and implementation of IT in the Bank products, services, and transactions.

The Branch Network Committee

The Branch Network Committee develops and makes decisions to enhance the efficiency of the regional branch network’s operations, development, and manageability (including for internal units). It assesses the performance of and takes action to enhance regional branch network efficiency.

The Problem Loan Management Committee

The Problem Loan Management Committee implements the Bank’s policy in problem loan management and develops proposals for the Bank’s Management Board to improve that policy, the quality of the Bank’s loan portfolio, and its efficiency in settling distressed loans. The Committee ensures that uniform approaches are applied in implementing the problem loan management policy, as well as for any non-core assets that the Bank may receive in the course of problem loan settlement.

The Corporate Ethics and Discipline Committee

The Corporate Ethics and Discipline Committee exercises overall control of implementing shared corporate values and ethical norms and facilitates development of a unified corporate culture at the Bank.

The Risk Management Committee

The Risk Management Committee controls the target risk appetite and the aggregated risk profile for the Bank and the Group, making sure that the risk taken falls within existing limits and constraints. It monitors key risk factors that affect the aggregated risk profile of the Bank and the Group overall and takes action so that the risk management system (including: risk identification, assessment, monitoring, and control processes) functions efficiently and is able to be continually upgraded.