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COMMUNICATION POLICY

The Communication Policy contains guidelines to put in place a decision-making process for:

  • Branding / publicity activities and communications being sent to everyone at Meezan Bank Limited.
  • Products and services-related communication being sent to a large number of people outside the Bank.
  • Communication with external media (newspapers, TV channels etc.) and Public Relations for the Bank.
  • Communication on Social Media.
  • Crisis Communication.

The Policy serves to ensure the following:

  • Ensure timely dissemination of communication to all stakeholders while maintaining clarity, coherence and credibility.
  • Ensure transparency and consistency of voice in internal and external communication.
  • Establish guidelines to protect and preserve the confidentiality of the Bank in relevant matters.

SUSTAINABILITY & CSR POLICY

The purpose of Sustainability & CSR Policy is to provide a framework for incorporating sustainability into the Bank’s operations and sets out the framework for the Meezan Bank’s Sustainability & CSR activities.

Areas of Focus

The Bank shall focus on the following areas, or any other area as decided upon by the Management, to ensure sustainable performance of its operations.

  • Stakeholder Engagement: Meezan Bank believes in maintaining a constructive dialogue with its stakeholders to contribute to improvements for sustainable development. The key stakeholders of the Bank are its shareholders, customers, regulators, employees, business partners and vendors/suppliers.
  • Social & Environment Sustainability: The Bank may choose to work independently or with partners to develop sustainable ideas that drive social and environmental change for promoting healthcare and energy conservation such as fundraising for healthcare, blood collection drives, reducing Carbon footprint of the Bank’s operations, and reducing paper consumption etc.
  • Education: Meezan Bank may choose to work independently or with partners and engage its stakeholders considering their feasibility in activities, such as, enabling underprivileged children and youth gain access to quality education and vocational training, along with creating environmental and social awareness among masses through participation and conducting training seminars, workshops and conferences.
  • Creating awareness about the prohibition of Riba and the available alternatives: Meezan Bank may choose to work independently or with partners for creating awareness about the prohibition of Riba, enabling the masses to help understand the implications of an interest-based economy and prohibition of Riba in the light of Shariah.

Guiding Principles

  • The Bank’s Sustainability & CSR activities will operate under the supervision of this policy.
  • The Bank shall ensure monitoring of all Sustainability & CSR activities.
  • The Bank will not participate in any activity that has any component that is considered non-compliant to Islamic Shariah.
  • Opinion on the Shariah-compliance of a proposed activity shall be sought from the Shariah Compliance Department.
  • The Sustainability & CSR activities should not be against the business interests of the Bank.

MARKETING POLICY

The Marketing Policy of the Bank aims to develop a marketing framework to achieve strong brand equity for the Bank in the market and to highlight its standing as a full-fledged Islamic Commercial bank and a one-stop shop for all Shariah-compliant banking needs. To achieve top of mind awareness and brand image in the Islamic banking industry by reinforcing our key Unique Selling Proposition (USP) of Islamic Banking and absolute Shariah-compliance through Islamic banking literacy and promotional activities that effectively support core product lines to enhance acquisition and promote key distribution channels.

The Policy serves to ensure the following:

  • The Bank will actively engage in promotion of Meezan Bank amongst the public as well as promotion of Islamic Banking as banking of first choice.
  • To help achieve top of the mind recall and brand recognition for the Bank.
  • To ensure promotion at avenues that provides best value for the Bank and is in line with the bank’s shariah policies.
  • Ensure Shariah-compliance in production and printing of all collateral (brochures), advertisements and other marketing material shall be duly vetted by the Shariah Board/Resident Shariah Board Member/Shariah Compliance Department.
  • The Bank will promote its products and services after obtaining proper approvals.
  • The Bank will not engage in any marketing practices to entice customers through false promises or unfair competition thereby ensuring high ethical values required from the Premier Islamic Bank.
  • The Bank will comply all the time the guidelines issued by the regulators.
  • The Bank will use multiple channels/ mediums to market its vision, mission, products and services.

DIRECTORS’ REMUNERATION POLICY

  • Remuneration shall be fixed in Pakistani Rupees (PKR) invariably; nevertheless, payment of the same can be made to foreign Directors in equivalent foreign currency(ies), where necessary, after obtaining the regulatory approvals as may be required from time to time.
  • No single member of the Board of Directors shall determine his/her own remuneration.
  • Proper and transparent disclosure of remuneration and other benefits/facilities provided to the Board members shall be made in the annual financial statements of the Bank, as per SBP instructions issued from time to time.
  • The Board and Committee meeting fees will be approved by the shareholders in Annual General Meeting on pre or post facto basis on the recommendation of the Board and Board HR&R Committee. The meeting fee, in any case, shall not exceed the limits prescribed by the Regulators.
  • All traveling/boarding/lodging expenses of the Directors related to Attendance of Board Meeting(s)/ Committee Meetings will be borne by the Bank at actuals. Expenses such as hotel stay etc. incurred due to personal reason or reason other than performance of Bank’ duties and business will be borne by the concerned Director.
  • No additional payments or perquisites will be paid to the Non-Executive Directors and Chairman except as mentioned in above clauses.
  • No consultancy or allied work shall be awarded to a Director or to the firm(s), institution(s) or company(ies) etc. in which he/she individually and/or in concert with other Directors of the Bank, holds substantial interest.
  • No remuneration under this policy would be paid to the Executive Directors except travel and boarding costs as per the Bank’s standard rules and regulations and relevant laws.

RISK MANAGEMENT POLICY

  • Objective of policy is to provide policy guidelines for developing a framework for the identification and management of various risks associated with operations of Meezan Bank.
  • Scope of Risk Management: Risk management activities take place at different hierarchy levels i.e. Strategic level (Risk Appetite and Policies established by the Board of Directors), Macro level (Risk management performed by middle management) and Micro level (Risk management performed by front office which ensures compliance to procedures and guidelines, etc.)
  • Effective Risk Management Framework: It involves Policies & Procedures, Board and senior management oversight, Adequate controls & Business line accountability, MIS, risk reporting, etc. Three lines of defence is also in place to manage risks on proactive basis.
  • Risk Appetite Statement and Risk Policies: Board has established Risk Appetite Statement encompassing various types of risks to be complied with. Further, Bank has in place number of risk policies covering various type of areas. Policies are developed keeping in view the Bank objective, best practices and prevailing laws and regulations.
  • Management Style, Oversight and Corporate Culture: Board ensures that the Bank’s overall risk profile is maintained at prudent levels. Board Risk Management Committee reviews and recommends policies on all related risks for approval of the Board. Senior Management has constituted management committees for effective management of various risks including but not limited to credit, market, liquidity, operational, compliance, Shariah and information security risks.
  • Risk Management Group is independent from business units so as to ensure that risks are within the approved limits and are properly measured, reported and escalated.
  • Adequate Internal Controls: Adequate system of internal controls is in place. The Bank has established clear lines of authority & responsibility for adherence to policies, procedures and limits set by the Bank.
  • Internal Audit & Business Risk Review Department reviews the risk management activities of various areas to ensure compliance of policies and procedures.
  • Compliance Department ensures that all directives and guidelines issued by the Bank, SBP and other agencies are complied with.
  • Adequate MIS, Communication and Reporting: Functional Heads establish procedures, controls and systems along with effective MIS to monitor various operations for timely identification of risk exposures. Further, reports on various risks are developed and communicated to all concerned to have perspective on overall risk profile of the Bank and for necessary decision making.

THE INVESTORS’ RELATIONS POLICY

This policy will apply to Meezan Bank’s Board of Directors and all employees.

  • Meezan Bank will make timely and accurate disclosures according to the criteria laid down in the relevant laws.
  • The Bank will maintain contact with investors and analysts through roadshows, investor conferences, Analyst briefing sessions, Corporate briefing sessions, group and individual meetings, ad hoc calls, e-mail messages and other channels of communication.
  • In compliance to the regulatory requirement of PSX, as amended from time to time, the Bank will hold Corporate Briefing Session (CBS) for its shareholders and analyst community under intimation to Pakistan Stock Exchange, at least once in a financial year.
  • The Bank will ensure accuracy and completeness of information in financial details being shared.
  • The Bank will hold Analyst Briefing Sessions for the Analyst community at least once in a financial year, usually after approval of Annual accounts by the Board.
  • No material non-public information would be shared prior to its dissemination to the Exchange and general public through PUCARS (Pakistan Unified Corporate Action Reporting System).
  • A forward-looking comment may be given in the periodic financial reports and / or included in a subsequent press release or briefing.
  • When a report or rumor about the Bank contains material errors, the Bank may choose to issue an announcement to deny or clarify the report or rumor, and provide sufficient supporting information if it feels the need to do so.
  • The designated Primary Spokespersons are:
    • President & CEO
    • Deputy CEO
    • Chief Financial Officer (CFO)
  • Meezan Bank will observe ‘Blackout Period’ prior to the announcement of its quarterly, semi-annual and full-year results.
    • The Blackout Period would start from the end of the relevant accounting period till the announcement of financial results to the public. The Bank will not comment on industry outlook, its business performance or financial results during this period.
  • Meezan Bank shall announce a ‘Closed Period’ in accordance with the applicable laws, prior to the announcement of interim/final results and any business decision which may materially affect the market price of the Bank’s securities. No Directors, CEO or *Executives of the Bank shall, directly or indirectly, deal in the securities of the Bank in any manner during the closed period. Duration of the Closed Period would be intimated to the Directors, CEO, and other Executives and stock exchange(s).
  • Meezan Bank recognizes the importance of Shareholders' privacy and will not disclose Shareholders' information without their consent unless required by law.
  • Any query related to the Investor Relations Policy should be addressed to the Company Secretariat at email: [email protected]

*All employees of Meezan Bank who are serving as either Group Head or holding a Key Executive position as defined in SBP Corporate Governance Regulatory Framework (CGRF) issued vide BPRD Circular No. 5 of 2021 dated November 22, 2021 (as amended from time to time).

BANKING ON EQUALITY POLICY

Meezan Bank has issued “Banking on Equality (BoE)” Policy to engender equality in banking whilst ensuring all Shariah Standards are being followed enabling the Bank to uphold its brand of being the Premier Islamic Bank.

The Policy aims to reduce the gender gap in bank staff as well as in improving the access and use of Islamic financial products & services by women. Thereby, help in reducing the gender gap in financial inclusion.

The Bank oversees its implementation on periodic basis, and is also self sufficient in maintaining dis-aggregated data with regard to female employees as well as female customers.

Gender Pay Gap Statement

PER AND IRR POLICY

The purpose of this reserve is to maintain a certain level of Return On Investment (ROI) for Mudarabah based depositors.

The parameters for Profit Equalization Reserve (PER) are as follows:

  • PER would be maintained from the Net Income of the pool, i.e. gross income less direct expenses and losses if any.
  • Monthly contribution into PER would not exceed 2% of Net Income of the pool.
  • Accumulated balance of PER shall not exceed 30% of Bank’s equity.
  • 50% of the balance available in PER shall be reflected as liability and 50% as reserves.
  • The funds of PER shall only be invested in SLR eligible securities.
  • Returns earned on these funds will also be credited into the PER account.
  • The Profit-Sharing Ratio (PSR) for Meezan Bank as Mudarib shall not exceed 10% for managing PER.
  • Meezan Bank may fully or partially utilize the amount of PER to improve the returns to the depositors during any period.

Note: PER is a tool for streamlining profit rates and does not guarantee the capital or profit in case of loss to the Mudarabah based depositors.

PROTECTION AGAINST HARASSMENT

Meezan Bank Ltd. attracts diversified staff from various corporate, geographical, ethnic and religious backgrounds. The Bank has institutionalized mechanisms to safeguard against the risk of violation of accepted norms of conduct in the day-to-day interaction with each other. The Bank firmly believes in the fundamental importance of the promotion of trust, openness, teamwork and professionalism; aims to promote a work environment that is free from harassment and discrimination.

Mistreatment may take the form of extreme bias or prejudice, aggressive behavior, verbal abuse, physical abuse or sexual harassment. Reasons for mistreatment may vary. Such mistreatments may cause a loss of the precious human resources of the Bank. Meezan Bank is committed to promoting a harmonious working environment where every employee is treated with respect and dignity. The Bank will not tolerate harassment or bullying behavior, by one employee to another; by employees of other stakeholders, including suppliers, contractors and customers.