Code Of Ethics


The MEB vision, regarding operational aspects, centers on corporate banking (as a bank) on the one side, and on the other side on trust building, honesty and compliance of banking operations with latest financial, legal and international banking industry standards. Hours of deliberation at the upper executive and staff levels of the bank helped the vision set “accurate” criteria for decision making by the management and provide a clear roadmap for other departments and deputies. It is obvious that a meaningful and strong vision is extremely important for the bank to raise funds and is critical for its operational approach, concerning recruitment, organization of branches, setting financial priorities on how to use deposits and bank’s resources and on devising structure and chart of the bank. The strategic map of MEB, using its main vision, endeavors to illustrate its long-term mission. In this connection, both human capital and information and organizational assets, including technological infrastructure, human resource composition and their skills, management styles and related teams, are regarded as the main backbone in shaping the corporate banking procedures. The outcome of such an organization for the customers and all other stakeholders should be what has been highlighted in the bank’s strategic documents.

Financial issues

The bank’s management, through study and analysis of the current situation and prevailing trends in the banking industry, is well-aware that mere emphasis on revenue generated from deposits may increase bank’s risk in its long-term revenue sustainability, so diversifying revenue bases and types of products offered to bank market services, should have two features, diversity and earning foreign currency revenues, while the latter is a reality which highly influenced bank’s approaches over the recent years. The main beneficiary of this section of the financial structure shall, finally, be the bank’s shareholders whose main concern is sustainability and recurrence of profit and meeting financial earning benchmarks, above the average banking industry of Iran. A glance at the financial statements of the bank, since inception, reflects the attainment of such a goal very clearly. The MEB financial growth plan is an organic one and from the date of establishment since today, financial expansion of the bank has been achieved, using revenues from operational profits. Enhancing cross-border financial relationships, in particular through Munich branch and representative offices in some other selected countries in the region, paves the way for such financial expansion and enjoys an organic relation with the above-mentioned goals.

Customers

MEB’s target customers consist of a group of customers who enjoy consultancy and in-person services and continuing support offered for their operational and other needs. This group of customers refers to the bank with a variety of needs including asset pricing, various modes of financing, working capital and long-term facilities, foreign exchange transactions, developing financial structures for running businesses and various financial restructuring, while the bank has already seen the appropriate structures to deal with such needs in its main vision. Amongst the deputies and back offices involved in such operations are international and Foreign Currency Deputy, Credit Deputy and Management of Credit Operations and Capital Raising Management, to name a few. The structure of branches are customer-base and back offices designed and organized to support front offices and line operations.

Operations, Human Capital, Information Technology

In the world today, banking operations require outward approaches and the best manifestation of such reality understanding in MEB may be seen in the developments achieved in the bank’s human capital and information infrastructure. From the viewpoint of MEB strategy, information technology is not merely setting up digital infrastructures to speed up transactions but the bank has been focused, in recent years, on finding solutions to expand the market of corporate customers. Attracting new customers to enjoy this platform of services with higher speed and quality has been the development goal of the bank. The structure of bank’s subsidiary companies, as value chain links, pursue the same objective as well. The young employees, in general, and lower age of human capital of companies, in comparison to the average of the industry, aims at more agility and flexibility in understanding developments in the environment and internalization of such realities.

Law and legal standards

The main vision of the bank is interconnected with the issue of building trust in the banking community of the country. Such objective was set achieved through the establishment of a set of relations which created systematic sustainable organizational trust within and out of the bank, to create the renowned brand of MEB. Amongst the main aspects of such type of trust building could be the establishment of up-to-date financial standards such as International Financial Reporting Standards (IFRS), hiring an international auditing accounting firm (KPMG), the establishment of an efficient risk management unit, practical implementation of AML requirements under the supervision of bank’s high ranking executives, assisting development and implementation of FATF protocols and implementing the same in the bank, the requirement to observe and abide by the professional rules and regulations by the staff of the bank and endeavor to comply with Basel standards, particularly the latest version, on a daily basis. It goes without saying that making speeches on trust building, without such hard work in the areas, shall be nothing, in the eyes of customers, but rhetoric..

Competitive environment

Bank’s managers, having analyzed the banking industry in two levels of internal and international banking, got the insight that banking operations should center around services which do not necessarily focus on deposits as a traditional source of revenue. Operations such as the establishment of investment funds, as competitors of banking deposits, activities for raising funds such as issuing debt instrument and shares for viable companies, pricing Merger and Acquisition (M&A),acceptance of/ introducing companies in/to capital markets, wealth management and asset management services in their general meanings, foreign currency operations through custodian operations as financial intermediary of potential foreign investors and internal financial markets and so on. Such activities are carried out through setting up internal departments in the bank or its subsidiary companies and may expand in the coming years to pursue the goal of expanding revenue generation bases and diversification of organic growth of profits.