Risk-Monitored Loans

*The Bank does not recognize accrued income for the loans of which payment of interest or repayment of the principal is past due three months or more. Consequently, “loans past due for three months or more” as defined by the Bank Law are included in non-accrual loans.

*Coverage Ratio 72.1%

*The Bank does not conduct partial charge-offs, defined as direct reductions of the remaining portion of loans to legally or effectively bankrupt borrowers deemed to be recoverable through collateral or guarantees.*

Compliance Measures
Having positioned compliance as one of its top management priorities, the Eighteenth Bank has recently published a compliance manual as a comprehensive guide outlining the Bank’s specific compliance measures. This manual contains information vital to the Bank in fulfilling its social responsibilities and its corporate mission in the region, centered on our policy of strict adherence to the law and respect for generally accepted ethical practices. In short, a strong ethical stance and sincerity in day-to-day operations form the foundation upon which fairness and transparency, the core of compliance policies at the Eighteenth Bank, are built.

Compliance System
The Business Administrative Division is the central entity in charge of the Bank’s compliance system. In addition to carrying out centralized management of legal issues and providing guidance to branches, the Division designates a team of employees who are charged with responsibility for overseeing compliance issues within each division and branch, and the Division maintains constant close liaison with these teams.
  The Bank formulated its Compliance Program to serve as a specific and practical plan for implementing compliance systems. Our Compliance Manual is distributed to all employees. Regular study meetings are held within divisions and offices to ensure employees have a complete understanding of the Manual. We also hold training and other activities tailored to employee grade and job description to deepen awareness of compliance-related issues. Other measures to improve employee understanding include mandatory participation in correspondence courses and distribution of compliance-related rulebooks.