We are committed to serving as a bank that earns high acclaim from customers, shareholders, and local communities. To this end, we have positioned legal and ethical compliance, which is fundamental to a sound business operation, as a top management priority.

In June 1998, we set up a department to supervise the Bank’s compliance-related activities and study the ideal format for compliance-oriented management system. In April 1999, we formulated the Kiyo Bank Legal Compliance Standards, for the purpose of ensuring that the Bank strictly complies with all laws and rules and engages in sincere, fair, and transparent business activities in harmony with social norms. In October 1999, we formulated the Kiyo Bank Corporate Ethics, which provides behavioral guidelines for directors and employees. Meanwhile, the Compliance Committee continues to study ways to prevent legal problems from happening and ensure legal and ethical compliance, as part of its efforts to reinforce and upgrade the Bank’s compliance system.

In order to prevent or quickly identify legal violations occurring in routine business activities, the Bank has appointed compliance officers and managers to all departments. Education and guidance are also provided to ensure a system of mutual checks and balances with respect to legal and ethical compliance.

As part of a ongoing education for directors and employees, the Board of Directors passed a resolution to compile a manual explaining all laws and ethical rules that should be observed; the manual has been distributed to all directors and employees. In addition, the Bank has established a curriculum to provide compliance-related education in all group training. These initiatives underscore our commitment to raising awareness among all directors and employees that legal and ethical compliance is a top priority at Kiyo Bank.

In addition, the Board of Directors has approved formulation of a compliance program aimed at further instilling a compliance-oriented mindset and increasing awareness of the importance of compliance. This program entails specific annual plans for the headquarters to follow.