High Ethical Standards, Compliance with Laws and Regulations, and Severing Ties with Antisocial Forces

「Implementation of all measures under the business improvement plan centred on embedding the purpose and vision has been completed, and the results of customer and employee surveys and other indicators show that the effects of initiatives for improvement and the prevention of recurrence are steadily becoming embedded and established throughout the organisation.」

「During the current interim consolidated accounting period, there were no material changes to the matters concerning "Business and Other Risks" described in the annual securities report for the previous fiscal year, nor any events relating to those matters.」

「As a result, of the 57 measures in total, implementation of the major measures, including those involving system development, progressed as planned and was completed by the end of March 2025.」

「During the current interim consolidated accounting period, there were no material changes to the matters concerning "Business and Other Risks" described in the annual securities report for the previous fiscal year, nor any events relating to those matters.」

「Overall, we have steadily implemented various measures under the improvement plan, including reviews of the organisational structure and evaluation framework and the planning of training and study sessions. Of the 57 measures in total, implementation of the major measures was completed by the end of March 2024, excluding certain measures involving system development.」

「The progress of initiatives for improvement and the prevention of recurrence has been disclosed on the websites of our bank and Chibagin Securities Co., Ltd. The addresses are as follows.」

「Based on these orders to improve business operations, our bank and Chibagin Securities Co., Ltd. submitted business improvement reports to the Kanto Local Finance Bureau on 24 July 2023. Subsequently, on 31 August 2023, our bank and Chibagin Securities Co., Ltd. announced an overview of their initiatives for improvement and the prevention of recurrence, based on the results of investigations by each company, as well as disciplinary actions against those involved. In addition, based on these orders, our bank and Chibagin Securities Co., Ltd. announced on 16 October 2023 that they had reported to the Kanto Local Finance Bureau on the progress of their initiatives for improvement and the prevention of recurrence, as of the end of September 2023.」

「On 23 June 2023, the Kanto Local Finance Bureau issued an order to improve business operations against our bank under Article 51-2 of the Financial Instruments and Exchange Act concerning financial intermediary services related to the solicitation and sale of structured bonds, based on circumstances involving investor protection concerns. It also issued an order to improve business operations against Chibagin Securities Co., Ltd., our consolidated subsidiary, under Article 51 of the Act concerning business operations in violation of the suitability principle in the solicitation and sale of structured bonds. Based on these orders to improve business operations, our bank and Chibagin Securities Co., Ltd. submitted business improvement reports to the Kanto Local Finance Bureau on 24 July 2023. These matters may damage the trust of customers, the market and others in our banking group and adversely affect the group's business operations, operating results and financial condition.」

「On 23 June 2023, the Kanto Local Finance Bureau issued an order to improve business operations against our bank under Article 51-2 of the Financial Instruments and Exchange Act concerning financial intermediary services related to the solicitation and sale of structured bonds, based on circumstances involving investor protection concerns. It also issued an order to improve business operations against Chibagin Securities Co., Ltd., our consolidated subsidiary, under Article 51 of the Act concerning business operations in violation of the suitability principle in the solicitation and sale of structured bonds.」

「The top risks selected at the March 2022 meeting of the Board of Directors are as follows. ・Delay in digital transformation ・Declining earnings capacity due to deterioration of the sales base ・Increase in credit-related expenses ・Decline in the value of held assets ・Large-scale system failure ・Cyberattack ・Regulatory action due to deficiencies in anti-money-laundering measures ・Occurrence of a serious misconduct incident ・Business suspension due to a large-scale natural disaster or spread of an infectious disease ・Climate change (TCFD) and carbon neutrality measures」

「In addition to formulating the Compliance Program through the Board of Directors, the company held 11 meetings of the Compliance Committee. At each meeting, the committee deliberated on matters including the implementation status of the program, measures to prevent recurrence based on root-cause analyses of compliance violations, and the status of initiatives to further enhance measures against money laundering and terrorist financing, and reported important matters to the Board of Directors.」

「In addition to formulating the Compliance Program through the Board of Directors, the company held 12 meetings of the Compliance Committee. At each meeting, the committee deliberated on matters including the implementation status of the program, measures to prevent recurrence based on root-cause analyses of compliance violations, and the status of initiatives to further enhance measures against money laundering and terrorist financing, and reported important matters to the Board of Directors.」

「The company also established whistleblower contact points inside and outside the bank, strengthening its framework and appropriately operating its rules for protecting whistleblowers.」

「In addition to formulating the Compliance Program through the Board of Directors, the company held 12 meetings of the Compliance Committee. At each meeting, the committee deliberated on matters including the implementation status of the program and measures to prevent recurrence based on root-cause analyses of compliance violations, and reported important matters to the Board of Directors.」

「In addition to formulating the Compliance Program through the Board of Directors, the company held 12 meetings of the Compliance Committee. At each meeting, the committee deliberated on matters including the implementation status of the program and measures to prevent recurrence based on root-cause analyses of compliance violations, and reported important matters to the Board of Directors. The company also established additional whistleblower contact points, further strengthened its framework, and appropriately operated its rules for protecting whistleblowers.」

「The “Chiba Bank Corporate Ethics,” comprising “securing unwavering trust,” “thorough compliance with laws and regulations,” “severing ties with antisocial forces,” and “transparent management,” among other principles, serves as the foundation for all corporate conduct.」