Basic Policy for the Internal Control System
Article 1. Ensuring Compliance with Laws, Regulations, and Articles ofIncorporation in Performance of Duties by Directors and Employees
1. The Japan Bank for International Cooperation (“JBIC”) and its subsidiaries(both collectively called “JBIC Group”) shall establish a corporate philosophy,
code of conduct, as well as the policy for compliance with laws and regulations
and other internal rules for compliance, and notify directors and employees of
those principles and rules, for the purpose of ensuring that directors andemployees including temporary workers (this definition is applied throughout
this document) perform their duties in compliance with laws, regulations, andthe articles of incorporation (“Laws and Regulations”).
2. Directors and employees of the JBIC Group shall abide by the internal rules forcompliance.
3.

JBIC shall set up a department responsible for compliance and appoint a
compliance officer in order to establish and reinforce a framework forcompliance with Laws and Regulations within the JBIC Group.

4.

JBIC shall establish a committee to deliberate important matters related tocompliance within the JBIC Group and monitor the status of compliance withLaws and Regulations.

5.

JBIC shall establish an effective internal anonymous reporting system andimplement it in an appropriate manner so that important facts related tocompliance within the JBIC Group can be detected earlier and necessary
corrective measures can be taken.

6.

The JBIC Group shall not have any connections whatsoever with antisocialforces. It shall adopt an uncompromising attitude, throughout its organization,
toward antisocial forces, and decisively reject all improper demands from suchforces.

Article 2. Retention and Management of Information concerning Performance ofDuties by Directors
1.

JBIC shall establish the information asset management regulations and otherinternal rules for retention and management of information in order that
information concerning the performance of duties by directors, customer
information and other information handled by JBIC can be appropriately
retained and managed.

2.

JBIC shall retain and manage the minutes of Board of Directors meetings andother documents relating to the performance of duties by directors, inaccordance with laws, regulations, or internal rules for retention andmanagement of information.

3. Directors and employees shall retain and manage information in an appropriatemanner according to the internal rules for retention and management ofinformation.
Article 3.
1.

Rules and Structures for Managing Risk of Loss

In recognition of the importance of risk management practices throughout its
entire organization, JBIC and its subsidiaries shall individually control various
risks in an appropriate manner by establishing the integrated risk
management regulations and other internal rules for risk management, which
stipulate the management of various risks that should be recognized in thecourse of business operations at the JBIC Group as well as the organizational
structure that is needed for integrated risk management.

2.

JBIC shall set up a department responsible for risk management and appoint arisk management officer. In addition, JBIC shall establish a committee to
conduct deliberations and considerations on implementing effective risk
management practices.

3.

JBIC and its subsidiaries shall strive to create a crisis management structure inpreparation for disasters and other crisis situations, by individually
establishing the crisis management regulations and other internal rules forcrisis management.

4.

In the case where normal business operations of the JBIC Group are disrupted
or might be affected by crisis situations, JBIC shall set up an emergency
response office as necessary, in accordance with the internal rules for crisis
management, to restore operations in a prompt and efficient manner.

Article 4.
1.

Ensuring Efficient Execution of Directors’ Duties

The Board of Directors shall establish business plans and properly manage
business of the JBIC Group.

2.

JBIC shall establish the Executive Committee to which authority is delegatedby the Board of Directors for approval of certain matters. In addition to making
decisions on those specific matters by exercising the delegated authority, theExecutive Committee shall deliberate matters requiring approval of the Board

of Directors prior to Board of Directors meetings, in order to aid
decision-making among the Board of Directors. Moreover, JBIC shall establish
an advisory body to the Executive Committee or other various committees towhich authority is delegated by the Executive Committee for approval ofcertain matters.
3.

JBIC shall establish the internal rules for organizational structure stipulating
the roles and responsibilities of the Board of Directors, for the purpose of
efficiently executing matters approved by a Board of Directors meeting.

4.

To expedite the decision-making process, JBIC shall introduce a function-basedorganization and an executive officer system in which authority is delegated bymanagement for approval of specific matters in accordance with theorganization rules, authority rules and other related internal rules.

Article 4 (2). Structures for Ensuring Proper Operations of JBIC Group’s Business
1.

JBIC shall take appropriate measures for business management and operationsin its subsidiaries, to ensure proper operations of JBIC Group’s business.

2.

JBIC shall establish a structure where its subsidiaries report to JBIC, in aproper manner, the important matters that their Board of Directors execute.

Article 5.
1.

Internal Audit for Ensuring Proper Operations of JBIC’s Business

JBIC shall establish the internal audit regulations and other internal rules forinternal audit to ensure the appropriateness and soundness of its operations.

2.

JBIC shall set up the Internal Audit Committee to make decisions ordeliberations on important matters related to internal audit for the JBIC
Group.

3.

JBIC shall set up the Internal Audit Department, separated from thedepartments subject to audit, to supervise the operations of internal audit.

4.

The Internal Audit Department shall conduct an internal audit for JBIC and its
subsidiaries as necessary, and report to the director responsible for internal
audit on the results, pursuant to the internal rules for internal audit.

5.

The Internal Audit Department shall periodically and as necessary, as well as
upon request of a director or a corporate auditor of JBIC (“Corporate Auditor”),
report the results of internal audits to the Board of Directors, other bodies orcommittees.

6.

The Internal Audit Department shall strive to perform an internal audit in an
efficient manner by collaborating and exchanging necessary information withCorporate Auditors and accounting auditors.
Article 6.

Assignment of Employees who Assist Corporate Auditors in Performing

Their Duties
1.

JBIC shall set up the Office of Corporate Auditor and assign employees to assist
Corporate Auditors in performing their duties.

2.

Those employees shall perform their duties in accordance with the instructions
from the Corporate Auditors.

3.

When deemed necessary, the Corporate Auditors may assign employees otherthan those stipulated in the above paragraph 1, on a temporary basis, to assist
in conducting audit work, by obtaining prior approval from the Governor.

Article 7. Securing Effectiveness of Instructions to Employees Assisting Audit Workand Independence of Instructions from the Director of Organization where They
Concurrently Work
1.

JBIC shall obtain prior approval of the full-time Corporate Auditor on thepersonnel evaluation and transfer of, and other personnel matters relating toemployees who assist Corporate Auditors in auditing (“the auditor’s officestaff”), before making decisions on those matters.

2.

JBIC shall make the auditor’s office staff engaged in audit work only as per theinstructions given by corporate auditors, to secure the effectiveness of theirinstructions to the auditor’s office staff. However, in the case where theauditor’s office staff need to concurrently works in another department/office,
JBIC shall obtain prior approval of the full-time Corporate Auditor on theirduties in another position, by clearly stating the following points in writing:(1) There is a rational reason why the auditor’s office staff need to concurrently
serve in another organization.
(2) In assisting with the duties of the Corporate Auditors, the auditor’s office
staff shall follow the instructions from the Corporate Auditors and not theinstructions from a director in an organization where the auditor’s office
staff serve concurrently.
(3) The scope of duties of and instructions to the auditor’s office staff in theposition other than the Office of Corporate Auditor shall be expresslylimited.
(4)

The auditor’s office staff shall not share, with others in anotherdepartment/office where he/she concurrently serves, the informationobtained from performing their duties at the Office of Corporate Auditor.
(5) The auditor’s office staff shall always give priority to the duties of assisting
the Corporate Auditors ahead of the duties in another organization where
the staff serve concurrently, to ensure the effectiveness of audits by theCorporate Auditors.
(6)

When deemed necessary, the full-time Corporate Auditor may withdraw
his/her approval of the auditor’s office staff ’s duties in another position whileworking at the Office of Corporate Auditor.

Article 8.

Internal Reporting by Directors and Employees to Corporate Auditorsand Preventing Unfair Treatment of Individuals who Reported to CorporateAuditors
1. Directors and employees of the JBIC Group, as well as corporate auditors ofJBIC’s subsidiaries shall, directly or indirectly, report the status of performanceof their duties to the Corporate Auditors when required, in an accurate manner.
2.

In the event that any fact that has the potential to inflict substantial harm upon
the JBIC Group, or material facts of wrongdoing or violations of Laws andRegulations are detected, both directors and employees of the JBIC Group, as
well as corporate auditors of JBIC’s subsidiaries shall, directly or indirectly,
report the fact to the Corporate Auditors without any delay.

3.

JBIC Group shall ensure that an individual who reports unlawful, improper
conduct or activity pursuant to the preceding paragraph shall be protected frombeing treated unfairly as a result of reporting such information.

Article 9.
1.

Securing Effectiveness in Auditing by Corporate Auditors

The Corporate Auditors shall be allowed to request directors and employees ofthe JBIC Group, as well as the corporate auditors of JBIC’s subsidiaries, toreport the status of performance of their duties, whenever they determine suchreports are necessary to conduct audits in an effective manner. A director oremployee of the JBIC Group as well as the corporate auditors of JBIC’ssubsidiaries who receive such a request shall promptly submit a report to theCorporate Auditors.

2.

The Corporate Auditors may express their opinions as necessary at the Board ofDirectors meetings, Executive Committee meetings and other importantcommittee meetings. The Corporate Auditors shall also be allowed to review theminutes of those committee meetings and other related documents.

3.

The Governor shall hold periodic meetings with the Corporate Auditors toexchange opinions.

4.

The Corporate Auditors may request the cooperation of the Internal Audit
Department and departments responsible for compliance matters.

5.

The Corporate Auditors may seek advice on audits from lawyers and certified
public accountants when they consider it necessary for conducting audits in an
effective manner.

Article 10. Procedures for Advance Payment and Payment of Fees, and Treatment of
Other Fees and Liabilities Incurred by Corporate Auditors in Executing TheirDuties
In the case where Corporate Auditors seek advice from lawyers and/or certified
public accountants regarding audits pursuant to the provision of the precedingarticle, JBIC shall pay fees, expenses and liabilities arising from the execution of
their duties based on the advice received from those specialists.