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Corporate Governance

In line with corporate governance guidelines issued by the Central Bank of Nigeria in April 2006, the Board had constituted the following committees:

Board Composition and Committee

Board Credit Committee:
The Committee acts on behalf of the Board on credit matters and reports to the Board for approval/ratification.

Board Finance and General Purpose Committee:
The Committee acts on behalf of the Board on all matters relating to financial management and reports to the Board for alpproval/ratification.

Board Establishment Committee:
The Committee acts on behalf of the Board on all matters relating to the workforce.

Board Risk Management Committee:
The Committee is responsible for evaluating and handling issues relating to risk management in the Bank.

Audit Committee:
The Committee acts on behalf of the Board on all audit matters. Decisions and actions of the Committee are presented to the Board for approval/ratification.  

     

Succession Planning

Sterling Bank PLC has a Succession Planning Policy which was approved by the Board of Directors in 2009. Succession Planning is aligned to the Bank’s overall organizational development strategy. In line with this policy, a new unit was set up in the Human Resources & Performance Management Group to implement, among others, a Succession Plan for the Bank.

The policy identifies 298 critical positions in respect of which there is a formal succession plan. Successors were nominated based on experience, skills and competencies through an automated process by current role holders in conjunction with the Human Resources & Performance Management Group. Development initiatives have also been put in place to accelerate successors’ readiness.

Code of Ethics

Sterling Bank has a Code of Ethics that specifies acceptable behavior of its staff in the staff handbook. It is a requirement that all staff should sign a confirmation that they have read and understood the document upon employment.

The Bank also has a Sanctions Manual which provides sample offences/violation and prescribes measures to be adopted in various cases. The Head of Human Resources & Performance Management is responsible for the implementation and compliance of the “Code of Ethics”.

Whistle Blowing Process

The Bank is committed to the highest standards of openness, probity and accountability hence the need for an effective and efficient whistle blowing process as a key element of good corporate governance and risk management.

Whistle blowing process is a mechanism by which suspected breaches of the bank’s internal policies, processes, procedures and unethical activities by any stakeholder (staff, customers, suppliers and applicants) are reported for necessary actions.

It ensures a sound, clean an dhigh degree of integrity and transparency in order to achieve efficiency and effectiveness in our operations.

The reputation of the bank is of utmost importance and every staff of the bank has a responsibility to protect the bank from any persons or act that might jeopardize its reputation. Staff are encouraged to speak up when faced with information that would help protect the bank’s reputation.

An essential attribute of the process is the guarantee of confidentiality and protection of the whistle blower’s identity and rights. It should be noted that the ultimate aim of this policy is to ensure efficient service to the customer, good corporate image and business continuity in an atmosphere compliant to best industry practice.

The Bank has a Whistle blowing channel via the bank’s website, dedicated telephone hotlines an de-mail address in compliance with Section 6.1.1.2 of the Central Bank of Nigeria (CBN) Code of Corporate Governance for Banks in Nigeria Post Consolidation.

The Bank’s Chief Compliance Officer is responsible for monitoring and reporting on whistle blowing.

 
   

Management Committees

Executive Committee (EXCO):
The Committee provides leadership to the management team and ensures the implementation of strategies approved by the Board. It deliberates and takes decisions on the effective and efficient management of the Bank.

Assets and Liability Committee (ALCO):
The Committee ensures adequate liquidity and the management of interest rate risk within acceptable parameters. It also reviews the economic outlook and its impact on the Bank’s strategies.

Management Credit Committee (MCC):
The Committee approves new credit products and initiatives, minimum/prime lending rate and reviews the credit policy manual. It approves exposures up to its maximum limit and the risk asset acceptance criteria.

Management Performance Review Committee (MPR):
The Committee reviews the Bank’s monthly performance onset targets and monitors budget achievement. It also assesses the efficiency of resource deployment in the Bank and re-appraises cost management initiatives.

Criticised Assets Committee (CAC):
The Committee reviews the Bank’s credit portfolio and collateral documentation. It reviews the non-performing loan stock and recovery strategies for bad loans.

Computer Steering Committee (CSC):
The Committee establishes the overall technology resources to meet business and operational needs of the Bank.

Management Risk Committee (MRC):
The Committee is responsible for planning, management and control of the Bank’s overall risks. It includes setting the Bank’s risk philosophy, risk appetite, risk limits and risk policies.