Management Base Supporting Value Creation

Directors, Audit & Supervisory Board Members and Executive Officers(As of June 26, 2024)

Directors(As of June 26, 2024)

Director andManaging Executive Officer
Group Chief Risk Officer
General Manager in charge ofCorporate Management

Tsutomu Yonemoto

Kiyomi Yamazaki

Masayasu Ono

Director andManaging Executive Officer
Group Chief Human
Resources Officer

Mutsumi Awaji

Takashi Makinose

Outside Directors

Director (Outside Director, Chairperson of
the Board of Directors)

85

The Chiba Bank Integrated Report 2024

Apr. 1990 Joined the Bank
Jun. 2018 General Manager, Corporate Planning Division, the Bank
Apr. 2019 General Manager, Hong Kong Branch, the Bank
Apr. 2021 Executive Officer, General Manager, Human Resources Division, the Bank
Apr. 2023 Managing Executive Officer, Group Chief Human Resources Officer,
Executive Officer in charge of Human Resources Division, Diversity
Management Division and General Secretariat, the Bank
Jun. 2023 Director and Managing Executive Officer, Group Chief Human Resources
Officer, Executive Officer in charge of Human Resources Division,
Diversity Management Division and General Secretariat, the Bank
(current position)

Yasuko Takayama
Apr. 1980 Joined Shiseido Co., Ltd.
Apr. 2006 General Manager, Consumer Information
Center, Shiseido Co., Ltd.
Oct. 2008 General Manager, Consumer Relations
Department, Shiseido Co., Ltd.
Apr. 2009 General Manager, Social Affairs and Consumer
Relations Department, Shiseido Co., Ltd.
Apr. 2010 General Manager, Corporate Social
Responsibility Department, Shiseido Co., Ltd.
Jun. 2011 Audit & Supervisory Board Member(standing), Shiseido Co., Ltd.
Jun. 2015 Advisor, Shiseido Co., Ltd.
Jun. 2015 Outside Director, the Bank (current position)
Jun. 2015 Outside Director, Nippon Soda Co., Ltd.
Jun. 2016 Outside Audit & Supervisory Board
Member, Mitsubishi Corporation
Jun. 2017 Outside Audit & Supervisory Board
Member, Yokogawa Electric Corporation
Jun. 2019 Outside Director (Audit and Supervisory
Committee Member), Cosmo Energy
Holdings Co., Ltd. (current position)
Jun. 2024 Outside Director, Yokogawa Electric
Corporation (current position)

Apr. 1979 Prosecutor, Tokyo District Public
Prosecutors Office
Apr. 1992 Registered as Attorney at Law, Tokyo Bar
Association Attorney at Law, Sawayaka
Law Office (current position)
Jul. 2006 Outside Director, Meiji Yasuda Life
Insurance Company
Jun. 2015 Outside Director, the Bank (current position)
Oct. 2015 Outside Director, Kyushu Financial Group Inc.
Jun. 2016 Outside Audit & Supervisory Board
Member, Tokio Marine & Nichido Life
Insurance Co., Ltd.
Jun. 2021 Outside Director (Audit and Supervisory
Committee Member), Kyushu Financial
Group Inc. (current position)(As of June 26, 2024)

Director (Outside Director)

Director (Outside Director)

Takahide Kiuchi

Ryoji Yoshizawa

Apr. 1987 Joined Nomura Research Institute, Ltd.
Jun. 2002 Head, Japanese Economic Research
Unit, Economic Research Department,
Nomura Research Institute, Ltd.
Jun. 2004 Deputy Head, Economic Research
Department and Head, Japanese
Economic Research Section, Financial &Economic Research Center, Nomura
Securities Co., Ltd.
Jun. 2007 Managing Director, Head, Economic
Research Department and Chief
Economist, Financial & Economic ResearchCenter, Nomura Securities Co., Ltd.
Jul. 2012 Member of the Policy Board, the Bank of
Japan
Jul. 2017 Executive Economist, Nomura ResearchInstitute, Ltd. (current position)
Jun. 2020 Outside Director, the Bank (current position)

Apr. 1987 Joined The Ashikaga Bank, Ltd.
Oct. 1998 Joined Westdeutsche Landesbank
Girozentrale (WestLB)
May 2001 Joined Standard & Poor’s (current S&P
Global Ratings)
Apr. 2004 Director (Senior Analyst), Financial
Institutions Ratings, Japan, Standard &Poor’sApr. 2017 Senior Director, Financial Institutions
Ratings, Japan, S&P Global Ratings
Nov. 2023 Managing Director, Financial Institutions
Ratings, Japan, S&P Global Ratings
Jun. 2024 Outside Director, the Bank (current
position)

The Chiba Bank Integrated Report 2024

Financial and Corporate Data

Apr. 1989 Joined the Bank
Jun. 2018 General Manager, Regional Revitalization Division, the Bank
Jun. 2019 Executive Officer, General Manager, Regional Revitalization Division, the Bank
Apr. 2020 Executive Officer, General Manager, Corporate Business Division, the Bank
Apr. 2021 Managing Executive Officer, Group Chief Human Resources Officer,
Executive Officer in charge of Human Resources Division and Diversity
Management Division, the Bank
Jun. 2021 Director and Managing Executive Officer, Group Chief Human Resources
Officer, Executive Officer in charge of Human Resources Division,
Diversity Management Division and General Secretariat, the Bank
Apr. 2022 Director and Managing Executive Officer, Group Chief Digital
Transformation Officer, Group Chief Human Resources Officer, Executive
Officer in charge of Digital Innovation Division, Human Resources Division,
Diversity Management Division and General Secretariat, the Bank
Apr. 2023 Director and Senior Executive Officer, Group Chief Strategy Officer, Group
Chief Digital Transformation Officer, Executive Officer in charge ofCorporate Planning Division, Group Strategy Division, Digital Strategy
Division, Public Relations Division and Corporate Administration Division,
the Bank (current position)

Yuko Tashima

Management Base Supporting Value Creation

Director andSenior Executive Officer(Representative Director)
Group Chief Strategy Officer
Group Chief Digital
Transformation Officer

Apr. 1990 Joined the Bank
Jun. 2015 General Manager, Hong Kong Branch, the Bank
Jun. 2017 General Manager, Corporate Administration Division, the Bank
Dec. 2018 General Manager, Compliance Division, the Bank
Apr. 2019 General Manager, Corporate Planning Division, the Bank
Jun. 2019 Executive Officer, General Manager, Corporate Planning Division, the Bank
Oct. 2020 Executive Officer in charge of New Businesses, the Bank
Apr. 2021 Corporate Planning Division and Human Resources Division, (Supervisorof regional trading company business), the BankMay 2021 President and Representative Director, Chibagin Market Co., Ltd.
Apr. 2023 Managing Executive Officer, Group Chief Risk Officer, Executive Officer incharge of Compliance and Risk Management Division and Service Quality
Management Division, the Bank
Jun. 2023 Director and Managing Executive Officer, Group Chief Risk Officer,
Executive Officer in charge of Compliance and Risk Management Division
and Service Quality Management Division, the Bank
Oct. 2023 Director and Managing Executive Officer, Group Chief Risk Officer,
General Manager in charge of Corporate Management, Compliance andRisk Management Division, the Bank (current position)

Human Capital Management

Apr. 1988 Joined the Bank
Jun. 2016 General Manager, Consumer Loan Business Division, the Bank
Jun. 2017 General Manager, Business Promotion Division, the Bank
Jun. 2018 Executive Officer, General Manager, Chuo Branch and Keisei-ekimae
Branch, the Bank
Apr. 2019 Executive Officer, Deputy to Executive Officer in charge of Prefectural
Block, the Bank
Jun. 2019 Executive Officer in charge of Domestic Business, in charge of Business
Planning Division, Customer Service Division, Business Promotion
Division, Corporate Business Division, Regional Revitalization Division,
Trust Business Division, Consumer Loan Business Division, Payment Card
Business Division, the Bank
Apr. 2020 Executive Officer, General Manager, Head Office and Saiwaicho Sub
Branch, the Bank
Jun. 2020 Managing Executive Officer, General Manager, Head Office and Saiwaicho
Sub Branch, the Bank
Apr. 2021 Senior Executive Officer, Group Chief Business Officer, General Manager
in charge of Business Promotion, the Bank
Jun. 2021 Director and Senior Executive Officer, Group Chief Business Officer, General
Manager in charge of Business Promotion, the Bank (current position)

Director (Outside Director, Chairperson ofNomination, Remuneration andCorporate Advisory Committee)

Growth Strategy for Value Creation

Apr. 1987 Joined the Bank
Jun. 2016 Executive Officer, General Manager, Business Promotion Division, the Bank
Jun. 2017 Director and Managing Executive Officer, Executive Officer in charge ofTreasury Division and Treasury Operation Division, the Bank
Jun. 2018 Director and Managing Executive Officer, Group Chief Business Officer,
General Manager in charge of Business Promotion, the Bank
Jun. 2019 Director and Senior Executive Officer, Group Chief Strategy Officer,
General Manager, Corporate Planning Headquarters, Executive Officer incharge of Corporate Planning Division, Public Relations Division, New
Head Office Project Office and Corporate Administration Division, the Bank
Apr. 2020 Director and Senior Executive Officer, Group Chief Strategy Officer, Group
Chief Digital Transformation Officer, General Manager, Corporate Planning
Headquarters, Executive Officer in charge of Corporate Planning Division,
Public Relations Division, New Head Office Project Office and Corporate
Administration Division, the Bank
Apr. 2021 Director and Senior Executive Officer, the Bank
Jun. 2021 President, Group Chief Operating Officer, the Bank
Apr. 2023 President, Group Chief Executive Officer, the Bank
Oct. 2023 President, Group Chief Executive Officer, in charge of Audit and Inspection
Division and Group Improvement Office, the Bank (current position)

Chiba Bank’s Value Creation

President(Representative Director)
Group Chief
Executive Officer

Director andSenior Executive Officer(Representative Director)
Group Chief Business Officer
General Manager in charge ofBusiness Promotion

Outside Directors (As of June 26, 2024)

Messages

Directors

86

Management Base Supporting Value Creation

Directors, Audit & Supervisory Board Members and Executive Officers(As of June 26, 2024)

Ratio of Independent Outside Directors

Ratio of Female Directors

44.4%

33.3%

(4/9)

Hironaga Fukuo

Standing Audit & Supervisory Board Member(Outside Audit & Supervisory Board Member)

Kazuhiro Kikuchi

Norikazu Takahashi

Apr. 1983 Joined the Ministry of FinanceJul. 2011 Director General, Fukuoka Local FinanceBranch Bureau
Jul. 2012 Director, Urban Renaissance Agency
Jul. 2014 Councillor, Cabinet Secretariat
Jul. 2016 Executive Director, Federation of National PublicService Personnel Mutual Aid Associations
Jul. 2017 Senior Executive Director, Federation of
National Public Service Personnel Mutual
Aid Associations
Jun. 2021 Outside Audit & Supervisory Board
Member, the Bank (current position)

Apr. 1985 Joined the Bank of Japan
Aug. 2008 General Manager, Okayama Branch, the Bank of JapanMay 2012 Deputy Director-General, Currency Issue
Department, the Bank of Japan
Nov. 2013 General Manager, Sendai Branch, the Bank of JapanMay 2015 General Manager, Information System
Services Department, the Bank of Japan
Jun. 2016 Executive Director, The Center for Financial
Industry Information Systems Auditor, The
Financial Futures Association of Japan
Jun. 2021 Outside Audit & Supervisory Board
Member, the Bank (current position)

Organizational structure: Company with an audit &supervisory board
Number of Directors: 9
Number of outside directors:
4 (All of them are independent officers)
Number of female directors: 3
Number of Audit & Supervisory Board members: 5

Skills Matrix*The matrix does not exhaustively show the specialty and experience of each of the Directors and Audit & Supervisory Board Members.

Specialties and Experience of Directors and Audit & Supervisory Board Members

Apr. 1988
Oct. 2014
Jun. 2016
Jun. 2017
Jun. 2018
Apr. 2020

Jun. 2023
Jun. 2023

Wataru Takahashi
Apr. 1975 Joined the Chiba Prefectural Government
Apr. 2008 Secretary General, Prefectural Assembly,
Chiba Prefectural Government
Apr. 2009 Executive Director, Commerce, Industry andLabor Department, Chiba Prefectural
Government
Apr. 2010 Executive Director, Policy and Planning
Department, Chiba Prefectural Government
Apr. 2012 Executive Director, General Affairs
Department, Chiba Prefectural Government
Apr. 2013 Vice-Governor, Chiba Prefecture
Jun. 2021 Outside Audit & Supervisory Board Member,the Bank (current position)

Executive Officers

Kiyomi Yamazaki

Director and Senior Executive Officer(Representative Director)
Group Chief Business Officer, General
Manager in charge of Business
Promotion

Mutsumi Awaji

Director and Senior Executive Officer(Representative Director)
Group Chief Strategy Officer, Group
Chief Digital Transformation Officer

Takashi Makinose

Director and Managing Executive Officer
Group Chief Human Resources Officer

Masayasu Ono

Director and Managing Executive
OfficerGroup Chief Risk Officer, General
Manager in charge of Corporate
Management

Yuko Tashima

Director (Outside Director, Chairpersonof Nomination, Remuneration andCorporate Advisory Committee)

Yasuko Takayama

Director (Outside Director, Chairpersonof the Board of Directors)

Takahide Kiuchi
Ryoji Yoshizawa

Director (Outside Director)

Hironaga Fukuo

Standing Audit & Supervisory Board
MemberKazuhiro Kikuchi

Standing Audit & Supervisory Board
Member (Outside Audit &Supervisory Board Member)Managing Executive Officer (In charge of Chiba Prefecture Business)

Executive Officer (General Manager of Digital Strategy Division)

Norikazu Takahashi

Standing Audit & Supervisory Board
Member (Outside Audit &Supervisory Board Member)Managing Executive Officer (In charge of Credit Unit)

Executive Officer (General Manager of Corporate Business Division)

Chigusa Saito

Non-Standing Audit & Supervisory
Board Member

Managing Executive Officer (Group Chief Information Officer)

Executive Officer (General Manager of Operation Division)

Wataru Takahashi

Managing Executive Officer (In charge of Business Outside Chiba Prefecture)

Executive Officer (General Manager of Narita Branch)

Non-Standing Audit & Supervisory
Board Member (Outside Audit &Supervisory Board Member)Managing Executive Officer (General Manager of Funabashi Branch)

Executive Officer (General Manager of Chuo Branch and Keisei-ekimae Branch)

Managing Executive Officer (General Manager of Head Office and Saiwaicho Sub Branch)

Executive Officer (General Manager of Group Strategy Division)

Executive Officer (General Manager of Business Coordination Division)

Executive Officer (In charge of Special Appointment)

Executive Officer (General Manager of Human Resources Division)

Executive Officer (General Manager of Tokyo Head Office)

Yoichi Mataki
Kyota Izumi

Kazunari Tanaka
Yukio Mikami

Masayuki Sugihara
Masaki Miyauchi
Akihiro Nagaoka
Atsushi Imai

The Chiba Bank Integrated Report 2024

Hideki Shibata
Shinichi Ito

Yumiko Mitsuoka

Yoshitaka Furumoto
Ryosuke Terauchi
Tatsuya Onishi
Taro Kanzawa
Shigeru Saito

Regional
sales

International
businesses/
Marketoperations

IT/DX

Sustainability

Financial and Corporate Data

Executive Officer (General Manager of Corporate Planning Division)

Akira Eshita

Risk
management/
Legal affairs

Director (Outside Director)

Managing Executive Officer (In charge of Market and International Business)

Nobukazu Odaka

87(As of June 26, 2024)

President (Representative Director)
Group Chief Executive Officer

Corporatefinance andaccounting/
Finance

Management Base Supporting Value Creation

Jun. 2020

Joined the Bank
General Manager, Diversity Management Division, the Bank
General Manager, Human Resources Division, the Bank
Executive Officer, General Manager,
Human Resources Division, the Bank
Executive Officer, General Manager,
Operation Planning Division, the Bank
Executive Officer in charge of Special
Appointment, the Bank
President and Representative Director,
Chibagin Heartful Co., Ltd.
Audit & Supervisory Board Member, theBank (current position)
Standing Audit & Supervisory Board
Member, Chibagin Computer Service Co.,
Ltd. (current position)

Tsutomu Yonemoto

Corporate
management

Human Capital Management

Chigusa Saito

Non-Standing Audit & Supervisory Board Member(Outside Audit & Supervisory Board Member)*For the Board of Directors meetings held in FY2023(As of June 26, 2024)

Name/Position

Non-Standing Audit & Supervisory Board Member

Number of outside Audit & Supervisory Board members:
3 (All of them are independent officers)
Number of executive officers: 18
Number of female executive officers: 1
Attendance rate of the Board of Directors meetings*:
98.6% (attendance rate for outside directors: 98.0%)

Growth Strategy for Value Creation

Apr. 1987 Joined the Bank
Apr. 2014 General Manager, Consumer Loan
Business Division, the Bank
Jun. 2016 General Manager, Kashiwa Branch, the Bank
Jun. 2018 Executive Officer, General Manager,
Human Resources Division, the Bank
Apr. 2021 Managing Executive Officer in charge of
the Credit Unit, the Bank
Mar. 2023 Retired as Managing Executive Officer incharge of the Credit Unit, the Bank
Jun. 2023 Audit & Supervisory Board Member, theBank (current position)

Standing Audit & Supervisory Board Member(Outside Audit & Supervisory Board Member)(3/9)

Chiba Bank’s Value Creation

Standing Audit & Supervisory Board Member

Messages

Audit & Supervisory Board Members

Contents of each skill item
[Corporate management] Experience as a top executive of a company or other organization, with the ability to execute in order to maximize business results[Corporate finance and accounting/Finance] Knowledge of banking finance and accounting, and financial business backed up by business experience[Risk management/Legal affairs] The ability to correctly identify and assess the risks involved in banking. Knowledge of legal matters related to the banking industry and the ability toperform their duties in an appropriate and sound manner[Regional sales] Familiarity with the products and services offered by the Bank, and to have the knowledge, experience and ability to contribute to the resolution of issues faced by regional customers[International businesses/Market operations] Global perspective based on overseas experience, and to have knowledge, experience, and ability related to overseas business and market operations[IT/DX] Knowledge of IT and DX, and able to contribute to the enhancement of the DX promotion system and the associated human resource development, utilization of newtechnologies, and advancement of cyber risk management[Sustainability] Knowledge, experience and ability to contribute to the sustainable growth of the Bank by addressing environmental, social and community issues

The Chiba Bank Integrated Report 2024

88

Management Base Supporting Value Creation

Corporate Governance Structure

Corporate governance has been enhanced through such measures as the executive officer system
introduced in 2003 and the appointment of outside directors which began in 2013.
Currently as of June 26, 2024, we have a 44.4% ratio of independent outside directors (4 out of 9)
and a 33.3% ratio of female directors (3 out of 9).
2020

Assigned Group Chief Digital Transformation Officer (CDTO)

2010

Abolished directors’ retirement benefits
Introduced equity-based remuneration in the form of stock
options

2021

2011

Put the Audit and Inspection Division under direct control of theBoard of Directors

2013

Appointed an outside director

Assigned Group Chief Human Resources Officer (CHRO)
Revised the director remuneration framework (Introduced
restricted stock remuneration system)
Abolished the position of Advisor role and reviewed the content
of Advisor to the President
Assigned the first female internal director

2015

Began evaluating the effectiveness of the Board of Directors
Appointed two female outside directors
Established the Corporate Advisory Committee (currently the
Nomination, Remuneration and Corporate Advisory Committee)

2018

Formulated the Information Disclosure Policy
Introduced the Group Chief Officer System
Raised the ratio of outside directors on the Board of Directors
to one-third

2019

Conducted evaluation on the effectiveness of the Board of
Directors by collaborating with an external evaluation firm
Formulated the “Policy on Corporate Governance”

2022

Appointed an outside director as the Chairperson of theNomination, Remuneration and Corporate Advisory Committee

2023

Established the Group Strategy Division that oversees overallbusiness execution of Group companies

2024

Appointed an outside director as Chairperson of the Board of
Directors
Assigned the first female representative director
Changed the term of office of a director (shortened from 2
years to 1 year)
Revised the director remuneration framework (Introduced theperformance-linked restricted stock remuneration system)

Corporate Governance Structure

As of June 26, 2024

Main Agenda Items and Decisions in FY2023
1stquarter

2ndquarter

3rdquarter

4thquarter

Status of cross-shareholdings
Policy on response to human capital disclosure
Dialogue with shareholders
Compliance with the 2015 UK Modern Slavery Act
and status of SDGs initiatives
Submission of the business improvement report
Partial revision of the internal audit plan
Report on business execution by Group Chief
Strategy Officer
Status of holding of meetings of the Nomination,
Remuneration and Corporate Advisory Committee
Status of initiatives for human resources strategy
Progress status of mid-term plan
Selection of additional top risks
Change of the term of office of a director and partial
amendment to the Articles of Incorporation

Progress status of non-financial and new businesses
Evaluation of the effectiveness of the Board of Directors
Initiatives for improving P/B ratio
Group companies’ activity reports
Progress status of DX strategy
Establishment of a joint venture with The Daishi
Hokuetsu Bank, Ltd., The Chugoku Bank, Ltd., andNomura Research Institute, Ltd.
Revision of the Policy on Customer-oriented
Business Operations
Report on business execution by Group Chief Digital
Transformation Officer
Policy on activities of the Group Improvement Office
Initiatives for enhancement of corporate value
Business performance plan
Revision of the executive remuneration system

Human Capital Management

Introduced the executive officer system

Growth Strategy for Value Creation

2003

The Board of Directors consists of nine directors, including four independent outside directors (theratio of independent outside directors is 44.4%). The Board of Directors makes decisions about
management policies and other important matters and supervises the execution of business by the
directors and executive officers.
The Bank has also adopted an executive officer system. This system provides for the clear
separation of the roles of the directors, who reach decisions on important matters, supervise theexecution of business operations, and perform other tasks, and the role of the executive officers, who
conduct business operations.
In response to the issuance of Business Improvement Orders by the Kanto Local Finance Bureau to
Chiba Bank and Chibagin Securities in June 2023, we acknowledge the importance of actions suchas advancing the level of Group governance, and we are engaging in efforts such as strengthening
supervision by the Board of Directors, including appointment of an outside director as the Chairpersonof the Board of Directors in April 2024.

Chiba Bank’s Value Creation

Initiatives to Strengthen Governance

Board of Directors

Messages

The Bank Group bases all of its corporate activities on the Chiba Bank Group’s Corporate Code of
Conduct. In addition, in the mid-term plan, we have included “Group Governance” as one of ourvalue creation bases as part of our drive to advance the level of corporate governance.
In complying with the Code and realizing these policies in our efforts to further strengthen andenhance corporate governance, we will contribute to the realization of a sustainable local
community through appropriate cooperation with diverse stakeholders and strive for sustainablegrowth and the improvement of corporate value in the medium to long term.

Management Base Supporting Value Creation

Audit & Supervisory Board

General Meeting of Shareholders(Appointment/Dismissal)(Appointment/Dismissal)

Supervision

Audit

Nomination, Remuneration and Corporate Advisory Committee

Audit &
Supervisory Board(Agenda/Report)

Various committees

President(Group Chief Executive Officer)

Accounting Auditor• Sustainability Promotion Committee• ALM Committee

Group CxO

• Compliance Committee, etc.
• Group Supervision Committee• Group Promotion Committee• Banking and Securities Strategic

Review Committee, etc.
(Report)Headquarters
Direction/
Management

Branches89

The Chiba Bank Integrated Report 2024

Group Strategy Division
Discussion/
Reports(Administration)

Group companies, etc.

Audit

Group Improvement Office

Audit andInspection Division

The Bank has adopted the form of a company with an audit & supervisory board with five Audit &Supervisory Board members, including a majority of three outside Audit & Supervisory Board members.
In particular, three of the Audit & Supervisory Board members, including two outside Audit & Supervisory
Board members, are standing Audit & Supervisory Board members. They attend meetings of theBoard of Directors and other important meetings, check important documents, and perform audits of
the headquarters and branches to conduct objective and reasonable audits of the status of businessexecution. We believe that this system provides an adequate management supervisory function.

Financial and Corporate Data

Board of
DesignatedDirectors

Board of Directors(Supervision)

Business Execution

Audit(Advisory/Report)

Nomination, Remuneration and Corporate Advisory Committee
We have established the Nomination, Remuneration and Corporate Advisory Committee as anadvisory body to the Board of Directors. To ensure objectivity, timeliness, and transparency ofprocedures, this Committee comprises four independent outside directors and three internal directors
appointed by a resolution of the Board of Directors. In addition, since October 2022, an outside
director serves as its chairperson to ensure the Committee’s independence.
The Chiba Bank Integrated Report 2024

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Management Base Supporting Value Creation

Corporate Governance Structure<Candidates for Outside Directors>
Candidates for outside directors are determined by the Board of Directors, following deliberations by the
Nomination, Remuneration and Corporate Advisory Committee the majority of which comprise independent
outside directors, based on the President’s recommendations of persons who mainly possess specialist
knowledge and experience in areas other than the Bank’s business operations and are deemed capable ofcontributing to the Bank’s sustainable growth and corporate value enhancement over the medium to long term
based on their insights in view of the skill matrix.

Succession Planning<Desired personalities of candidates (nomination policy)>
Images of desired personalities of candidates are deliberated by the Nomination, Remuneration and Corporate
Advisory Committee in view of qualities and abilities required as management, as well as the businessenvironment surrounding our Group and the direction of its future business strategies, and are shared by the
Board of Directors. Whether to review the images of desired candidates for successors or not in accordance withchanges in the business environment, etc. is deliberated as appropriate.

<Candidate selection process>Candidates are proposed by the President (including reappointment, replacement and dismissal of directors
including representative directors) and determined by the Board of Directors following deliberations on theconsistency, etc. with the nomination policy and training policy by the Nomination, Remuneration and Corporate
Advisory Committee.
91

The Chiba Bank Integrated Report 2024

Takahide Kiuchi(June 2020)
Ryoji Yoshizawa(June 2024)

The Bank appoints outside Audit & Supervisory Board members who are deemed to help further strengthen
the audit function by leveraging the knowledge and experience of said persons in the Bank’s management.
Name (Appointment)
Kazuhiro Kikuchi(June 2021)
Norikazu Takahashi(June 2021)
Wataru Takahashi(June 2021)

Reasons for Appointment as Outside Audit & Supervisory Board Member
Has a high level of expertise gained through experience as Councillor of Cabinet Secretariat
and Senior Executive Director of the Federation of National Public Service Personnel Mutual
Aid Associations, etc., as well as extensive knowledge in public administration overall.
Has a high level of expertise gained through experience as General Manager of branches andGeneral Manager of Information System Services Department of the Bank of Japan, etc., aswell as extensive knowledge in finance overall.
Has extensive knowledge mainly in public administration gained through holding numerous
important positions including Vice-Governor of Chiba Prefecture.

Support Systems for Outside Directors and Audit & Supervisory Board Members<Outside Directors>
The Bank has placed staff in the General Secretariat and Corporate Planning Division to support the outside
directors and provides them with information and support necessary for the execution of their duties in an
appropriate and timely manner to ensure that outside directors fully play their roles as supervisors of the
management. We continuously give outside directors opportunities for deepening their understanding about theBank’s management strategy and activities with the aim of enhancing deliberations by the Board of Directors, bymeans such as provision of materials and explanations for the Board of Directors meeting in advance, provisionof individual explanations on important matters, attendance at main committee meetings, engaging in dialogues
with directors as well as general managers, visiting and holding dialogues at affiliated business offices in theGroup, participation in main IR events, etc., and provision of information related to the Bank’s activities whenevernecessary. In addition, the Bank provides outside directors with opportunities to undergo training by third-party
organizations at the Bank’s expense.

Financial and Corporate Data

<Review of candidates’ personalities and training schemes>
The Nomination, Remuneration and Corporate Advisory Committee members review personalities of candidates
based on a third-party evaluation, etc. by an external specialized organization. The committee then considers
policies and plans for training candidates to help them become a person qualified for the position.

Yasuko Takayama(June 2015)

Management Base Supporting Value Creation

Successors to the representative directors are determined by the Board of Directors following deliberations by the
Nomination, Remuneration and Corporate Advisory Committee the majority of which comprise independent
outside directors, in view of desired personnel requirements, personnel training policy and plan, as well as thestatus of training, etc. The status of deliberation is reported, as appropriate, to the Board of Directors.

Yuko Tashima(June 2015)

Reasons for Appointment as Outside Director
Has a high level of expertise as an attorney, with experience as an outside director at othernon-financial companies as well as experience in public service, including as a member of the
Financial System Council of the Financial Services Agency.
Has experience as a manager of customer service and CSR divisions and as a standing Audit& Supervisory Board member of a major cosmetics company, as well as experience as an
outside director at other non-financial companies.
Has both domestic and international experience as an economist and, in addition to having
accumulated significant expertise, was responsible for carrying out deliberations regarding
monetary policies as a member of the Policy Board, the Bank of Japan.
Has experience in credit analysis of financial institutions as Managing Director of Financial Institutions
Ratings, Japan at a major rating agency and in supervision of rating standards and analysis techniques
for banks around the world as a member of the agency’s highest internal council for analysis.

Human Capital Management<Candidates for Audit & Supervisory Board Members>
Candidates for Audit & Supervisory Board members are determined at a meeting of the Board of Directors that isparticipated by independent outside directors, following deliberations by the Nomination, Remuneration andCorporate Advisory Committee and consent by the Audit & Supervisory Board, based on the President’s
recommendations of persons who possess knowledge and experience to enable the appropriate, fair, andefficient performance of audits on the execution of duties by directors, as well as sufficient social trust.

Name (Appointment)

Growth Strategy for Value Creation*Reasons for disqualification
The representative director is deemed to have a relationship with antisocial forces
The representative director is deemed to have violated laws, regulations, or internal regulations

The Bank appoints outside directors who are deemed to be capable of contributing to theenhancement of corporate value over the medium to long term, through a further enhancement of thedecision-making and supervisory functions of the Board of Directors, by leveraging the knowledge
and experience of said persons in the Bank’s management.

Chiba Bank’s Value Creation<Candidates for Internal Directors>
Candidates for internal directors are determined by the Board of Directors, following deliberations by the
Nomination, Remuneration and Corporate Advisory Committee the majority of which comprise independent
outside directors, based on the President’s recommendations of persons who, based on a deep understandingof the Bank’s basic management policy, possess knowledge and experience to enable the appropriate, fair, andefficient execution of bank business management, as well as sufficient social trust, with the aim of achieving ourmanagement strategy. Representative directors are determined by the Board of Directors following deliberations
by the Nomination, Remuneration and Corporate Advisory Committee on persons suitable for representing the
Bank selected from among internal directors. In the event of occurrence of a serious obstacle to the execution ofduties as a representative director or when a representative director falls under reasons for disqualification*,
dismissal of such representative director shall be determined by the Board of Directors following deliberations by
the Nomination, Remuneration and Corporate Advisory Committee.

Reasons for the Appointments of Outside Directors and Audit & Supervisory Board Members

Messages

Policies for Appointment and Dismissal of Directors andNomination of Directors and Audit & Supervisory Board Members<Outside Audit & Supervisory Board Members>
In order for Audit & Supervisory Board members to conduct audits, etc., and to operate the Audit & Supervisory
Board smoothly, the Audit and Supervisory Support Office was established independent of the executive officers.
The general manager of the Audit and Supervisory Support Office promptly reports to the Audit & Supervisory
Board members and liaises and cooperates closely with them. In order to ensure independence from directors,
the Bank obtains the consent of Audit & Supervisory Board members regarding personnel changes, etc. In
addition, Audit & Supervisory Board members attend meetings of the Board of Directors and other important
meetings and are provided with important documents of the Bank, which ensure that information iscommunicated timely and properly.
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Management Base Supporting Value Creation

Corporate Governance Structure

Evaluation of the Effectiveness of the Board of Directors

The remuneration system for Directors and the percentage of remuneration by type are considered by
the Nomination, Remuneration and Corporate Advisory Committee the majority of which comprise
independent Outside Directors, as appropriate in response to changes in the business environment,with reference to companies of similar size to the Bank and related industries and business categories.
Remuneration of the Bank’s directors is determined by the Board of Directors based on the
remuneration regulations established by the Board of Directors, following deliberations by the Nomination,
Remuneration and Corporate Advisory Committee to ensure transparency, fairness, and rationality.

Since FY2015, the Bank has been verifying whether the Board of Directors is properly performing thefunctions of decision making and supervision, which are expected of them. The Bank carries out anevaluation of the effectiveness of the Board of Directors annually to enhance those functions.

Directors (Excluding Outside Directors)

Outside Directors
Based on the role in supervising the execution of business, the remuneration system is not linked to performance,
but rather is limited to “basic remuneration.”

Audit & Supervisory Board Members
In order to ensure independence, remuneration for Audit & Supervisory Board members is not linked to performance,
but is limited to “basic remuneration.”Group Chief Executive Officer (CEO)Group Chief Strategy Officer (CSO)
Group Chief Risk Officer (CRO)Group Chief Business Officer (CBO)Group Chief Information Officer (CIO)
Group Chief Digital Transformation Officer (CDTO)
Group Chief Human Resources Officer (CHRO)93

The Chiba Bank Integrated Report 2024

The Bank has established the Purpose at the same time as the current Mid-term Plan, and are promoting the transformation of theorganizational culture through the instilling of the Purpose. The Board of Directors will also monitor the instilling of the Purposeand ensure that all initiatives are based on the Purpose.
Recognizing the need to reflect customer views in the management of the Bank Group, we will further enhance the collection andanalysis of customer views and reflect them in our policies and measures.
In order to enhance Group governance, we will strengthen our involvement in Group companies by ensuring fulfillment of the rolesof the Group Chief Officers.

Internal Audit
At the Bank, the Audit and Inspection Division, which is independent of the units subject to auditing, verifies and evaluates theappropriateness and effectiveness of the internal management systems including compliance and risk management. The divisionalso makes recommendations, etc. on improvement methods for problem areas, in order to ensure the sound and proper
management of business operations and thereby contribute to the achievement of management goals.
The Audit and Inspection Division reports directly to the Board of Directors and conducts internal audits of branches,
headquarters, Group companies, etc. in accordance with the Internal Audit Regulations and the Internal Audit Plan, a planestablished every fiscal year and approved by the Board of Directors. The division reports the results and findings of internal
audits to the Internal Audit Committee and the Board of Directors, both of which, as a general rule, meet once a month. Problem
areas from the perspective of compliance and risk management and improvement measures are examined during this process.
Moreover, the division strives to increase the sophistication of internal audits by implementing measures, such as enhancing
the check and supervisory functions, adapting to changes in the environment, improving the audit quality (including external
evaluation), training specialized human resources, and strengthening audits of overseas branches and Group companies.
Considering the issuance of the Business Improvement Order by the Kanto Local Finance Bureau to the Bank and Chibagin
Securities to be a matter of the utmost gravity, we are implementing recurrence prevention measures, including the strengtheningof collaboration between the Bank’s Audit and Inspection Division and Chibagin Securities’ Audit and Inspection Division andstrengthening of the audit function.
The Chiba Bank Integrated Report 2024

Financial and Corporate Data

*The following Group Chief Officers are assigned:(2) Based on the results of the evaluation, the Bank will further improve the effectiveness of the Board of Directors, improve business, andprevent recurrence by addressing the following issues. In addition, we will improve the objectivity of the Board of Directors by appointing
an Outside Director as its chairperson from FY2024.

Management Base Supporting Value Creation

Group Chief Officers* (CxO) are assigned responsibility for their areas of supervision, thereby creating aGroup-wide corporate management system. Efforts are made to ensure proper operations in the Group. In
addition to the assignment of responsible directors to supervise each Group company, the dispatch of
Audit & Supervisory Board Members, audits by the Bank’s Audit Division, and other initiatives under theGroup Companies Management Regulations, Group companies are required to consult with and report to
the Bank about their important business execution in accordance with the Prior Consultation andReporting System. In FY2023, the Group Supervision Committee met twice with the aim of understanding
the management status of each Group company and their various issues. The Group Promotion
Committee also met twice with the aim of demonstrating synergy effects through further collaboration
between the Bank and Group companies. The Group Strategy Division has been established to oversee
overall business execution, including sales and administrative aspects of Group companies, to realize
integrated group management and sophisticated Group governance. In addition, from the perspective ofclarifying responsibility, one division from each company has been designated as that company’s
operations division, and a group management department has been established to realize optimal
allocation of management resources in addition to the management of risk across the Group that has
taken place until now.

All directors and Audit & Supervisory Board members, whether they are internal or outside officers, aim for the continuous growthof the Chiba Bank Group together with the local community. This is done through the provision of value based on the Purpose,
against a backdrop of deep connections with stakeholders, including customers, employees, and shareholders. They are also
deepening debate on key strategies, such as DX strategy, GX strategy, alliance strategy, and human resources strategy, and freely
exchange their opinions based on mutual understanding with a strong sense of unity.
Board discussions are displaying increasing depth as internal directors voice opinions based on their rich experience in every areaof the financial business, and outside directors and Audit & Supervisory Board members make recommendations based on their
specialized knowledge in diverse fields and voice their opinions from an independent and objective standpoint.
The quality of debate in the Board of Directors has been improved by strengthening the provision of information to outside directors
through such means as visits to Group companies and business offices, accompanying Audit & Supervisory Board members on
on-site audits, interviews with senior management employees, and information exchange with Audit & Supervisory Board members.
Efforts are also being made to further improve the effectiveness of the Board of Directors by strengthening the administration ofrequests and recommendations in the Board of Directors and reporting the status of responses.
With the aim of enabling Group Chief Officers to further fulfill their roles, each CxO verified and grasped issues from the customersʼ
perspectives in each management area, including Group companies, and reported to the Board of Directors, thereby strengthening
Group governance.
The Nomination, Remuneration and Corporate Advisory Committee also deepened its discussion not only on nomination andremuneration but also on matters related to important management issues and fulfilled its role appropriately. Efforts to ensure theobjectivity, timeliness, and transparency of this committee were also made, including reporting by the outside director who chairs
the committee on the committeeʼs work to the Board of Directors.

Human Capital Management

Group Management Systems(1) Considering the findings below, the Bank has judged that the functions of decision making and supervision are performed properly by the
Board of Directors and its effectiveness is ensured.

Growth Strategy for Value Creation

Remuneration consists of basic compensation (70%), bonuses (10%), and equity-based remuneration (fixed RS:
10%, performance-linked RS: 10%). (RS: Restricted stock)
The amount of basic compensation, bonuses, and equity-based remuneration (fixed RS: 10%, performance-linked
RS: 10%) is determined based on rank.
The Bank introduced fixed RS and performance-linked RS remuneration plans with the objectives of more clearly
linking the remuneration for Directors with the Bank’s performance and share value, granting incentives aimed atsustainable improvement of the corporate value of the Bank through the achievement of the performance targets set
forth in the Mid-term Plan and the medium- to long-term improvement of the Bank’s performance, as well as further
sharing value with shareholders.

In FY2023, in order to objectively verify the effectiveness of the Board of Directors, we conducted questionnaires and interviews for each Directorand Audit & Supervisory Board Member with the support of a third-party professional organization, and evaluated the effectiveness by referring totheir evaluations, based on the fact that five years have passed since the last external evaluation by a third-party professional organization and thatthe Bank has received the Business Improvement Order. The evaluation covered the roles and functions of the Board of Directors, the content of
its discussions, the status of its operations, and its composition, as well as the status of the Nomination, Remuneration and Corporate Advisory
Committee and the self-evaluation of each individual Director and Audit & Supervisory Board Member. We also examined the state of group
governance as an important issue. Some major Group companies were also assessed for effectiveness with the support of a third-party
professional organization, while other Group companies were assessed for effectiveness by means of questionnaires.
The overview of the results of the evaluation of the effectiveness of the Board of Directors for FY2023 is as follows.

Chiba Bank’s Value Creation

Remuneration Structure and Components

Messages

Remuneration of Directors and Audit & Supervisory Board Members

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Management Base Supporting Value Creation

Compliance

The Chiba Bank Group’s Corporate Code of Conduct
1. Establishing Unwavering Trust
2. Providing High-Quality Financial Services
3. Contribution to Regional Economy andCommunity

In accordance with the Anti-Money Laundering and Anti-Terrorist Financing Policy, responding tochanges in the internal and external environments, the Bank appropriately evaluates risks of money
laundering, financing of terrorism, proliferation financing, and other violations of economic sanctions
involved in transactions it carries out, and implements measures according to the risks involved. In
addition, we are reinforcing measures to protect customers’ assets from a variety of financial crimes
such as wire transfer fraud.
Moreover, to respond appropriately to the expected increase in the complexity and sophistication ofmoney laundering, etc. and financial crime techniques, we are devising measures to address theserisks with the banks participating in the TSUBASA Alliance. In November 2023, the Bank, Daishi
Hokuetsu Bank, Ltd., the Chugoku Bank, Ltd., and Nomura Research Institute, Ltd. established ajoint venture company TSUBASA-AML Center Co., Ltd. Going forward, TSUBASA-AML Center willconduct transaction monitoring, filtering, etc. utilizing a joint system, and strive to enhance themeasures and improve efficiency.

Initiatives to Strengthen Compliance and Risk Management of the Group Companies

5. Transparent Management
7. Responsibility to Help Realize a Sustainable
Society

The Compliance and Risk Management Division is enhancing capabilities to oversee and manage
Group companies by determining the status of compliance and the risk management of each Group
company in a timely and appropriate manner and providing necessary support and guidance, etc.
through mutual and detailed exchanges of opinions between the Division and the Group companies.

8. Opposition to Antisocial Forces andPrevention of Money Laundering, Etc.

Opposition to Antisocial Forces

6. Respecting Human Rights

Financial and Corporate Data

4. Thorough Compliance with Laws, Rules andOther Fundamental Principles

Management Base Supporting Value Creation

We established The Chiba Bank Group’s
Corporate Code of Conduct to clarify the codeof conduct for employees. We also established
our Compliance Manual, which contains
specific guidelines, to instill these rules.
Every fiscal year, the Board of Directors
establishes a compliance program to provide a
specific action plan for achieving further
improvements in compliance activities.
The execution of this program is checked ona regular basis by the Board of Directors andthe Compliance Committee.

Initiatives to Prevent Money Laundering, etc. and Financial Crimes

Human Capital Management

Consistent Implementation of Basic Policies and Formulation of Compliance Program*1 The financial ADR system is an out-of-court dispute settlement procedure in the financial sector, designed to solve disputes in a simplified
and prompt manner without going to court through the involvement of a fair and neutral third-party organization. The Bank has signed abasic agreement to implement the procedure with the Japanese Bankers Association and the Trust Companies Association of Japan,
which are designated dispute resolution organizations under laws and regulations.
*2 Personal information includes personal identification numbers and specific personal information that includes a personal identification number.

Growth Strategy for Value Creation

The Bank positions compliance as the foundation of all its business operations, and believes it
important to conduct all of our business activities fairly and in good faith, by complying with all laws
and regulations relating to banking transactions, by observing all internal rules and regulatory
requirements pertaining to our role in society, and by avoiding actions that would fall short of normalsocial expectations. The Bank thus works to instill compliance across its operations.
As for specific measures, the Bank regularly convenes the Compliance Committee, which is chairedby the President and consists of directors, executive officers, and general managers as members, toreview concrete practical plans and measures, etc. to instill compliance. The Compliance and Risk
Management Division oversees the Bank’s overall compliance-related tasks such as through theadministration of compliance regulations and manuals, the preparation and monitoring of training
programs, and periodic checks on the compliance and risk management situations. In addition, eachdivision of the headquarters monitors branch-level compliance and provides advice.

To protect customers and offer them greater convenience, all employees of the Bank receive guidance
and training designed to ensure that everyone conducts business with sincerity and fairness. We pay
particular attention to complex financial products with risks that include the possible loss of principal
and to derivative transactions. In these cases, we comply with the Financial Instruments andExchange Act and always perform proper solicitation and sales activities in line with the Chiba Bank
Solicitation Policy.
We sincerely listen to requests and complaints from customers and properly deal with disputes, ifany, in accordance with the purport of the financial ADR system*1.
We regard personal information*2 as a valuable asset entrusted to us by our customers and strictly
manage customer information in accordance with the Pronouncement of Policies Concerning
Appropriate Protection and Utilization of Personal Information (Pronouncement Concerning Protectionof Personal Information).

Chiba Bank’s Value Creation

Compliance Structure

Protecting Customers and Personal Information

Messages

The Bank Group is a corporate group that fulfills its social responsibility and public mission as apart of society. To instill awareness of compliance more firmly, the Group established the Chiba
Bank Group’s Corporate Code of Conduct in April 2021. To continue to be a bank that is trusted
by customers, we are committed to thorough compliance and undertake business activities in an
ethical and responsible way.

The Bank maintains links with police authorities, lawyers, and other external organizations as astructure to provide appropriate countermeasures against unreasonable demands, interference, orother inappropriate approaches from antisocial forces. Moreover, the Bank has put organized crime
disclaimers in various contract documents and deposit account regulations, and is actively taking
measures to eliminate relationships with antisocial forces. Furthermore, the group companies are also
taking measures similar to those of the Bank to counteract antisocial forces, and the status of
implementation of such measures is controlled and managed by the Bank.
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96

Management Base Supporting Value Creation

Customer-oriented Business Operations

Customer-oriented Business Operations (Fiduciary Duties)

Policy items
4. Provision of Important Information in an Easy-tounderstand Manner
5. Provision of Services Suitable for Customers
6. Frameworks, etc. for Appropriately Motivating
Employees

The Policy on Customer-oriented Business Operations (Fiduciary Duties) is available on our website (Japanese only).
https://www.chibabank.co.jp/company/info/fd/

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The Chiba Bank Integrated Report 2024

Basket• Ratio of sales by Group
companies• Investment trust fundcancelation rate
• Number of holders offinancial planner
qualifications• Number of seminars held

• Ratio of customers by investment profit/loss(investment trust funds, foreign currencydenominated insurance products, fund wraps)*• Ratio of customers holding two or moreinvestment trust funds• Number of customers periodicallypurchasing investment trust funds andamount of automatic transfer• Number of active Tsumitate NISA accounts
and balance• Cost return and risk return* of top 20 investment
trust funds on assets under management• Cost return* of top 20 foreign
currency-denominated insurance products

Evaluation by customers• Customer satisfaction
questionnaire survey

Marked with * are indicators based on the “common KPIs comparable across investment trust distributors” and “common KPIs comparable across foreign
currency-denominated insurance distributors” published by the Financial Services Agency in June 2018 and January 2022, respectively.

For the status of KPIs, please refer to the Status of Initiatives in FY2023 under the Policy on Customer-oriented
Business Operations (Fiduciary Duties) available on our website (Japanese only).
https://www.chibabank.co.jp/company/info/fd/pdf/fd.pdf

Efforts to Improve Service Quality by Listening to Customer Feedback
We will step up guidance and oversight for theheadquarters and branches with the aim of
improving the quality of the Group’s products
and services by compiling a wide variety of
feedbacks including requests and complaints
from customers and opinions of branches.
Specifically, for requests and complaints directly
received from customers and gathered throughquestionnaires and other means, after analyzing
the trends and causes we will create or revamp
products and services from the customer’s
perspective. We will also test the effectivenessof these efforts and make further improvements
to raise quality.

Collection of Customer Feedback
Customer Feedback Cards(accepted at branches or by post)
In-person comments made at branches
Questionnaires
Opinion & request forms

Financial and Corporate Data

1. Pursuing the Best Interests of Customers
2. Appropriate Management of Conflicts of Interest
3. Clarification of Fees, etc.

• Sales ratio via Okane no

Benefits to customers

Management Base Supporting Value Creation

In asset management-related services, based on our Policy on Customer-oriented Business
Operations (Fiduciary Duties), we strengthened customer-oriented initiatives while regularly disclosing
the status of these initiatives and reviewing the policy appropriately in an effort to further improvebusiness operations. However, treating the issuance of the Business Improvement Orders by the
Kanto Local Finance Bureau to the Bank and Chibagin Securities as a matter of the utmost gravity, asof October 31, 2023, we revised the policy to be more specific, easier to understand, and to help
prevent recurrence from the perspective of being “customer-oriented.”

Actions for andawareness of fiduciary duties

Human Capital Management

Policy on Customer-oriented Business Operations (Fiduciary Duties)

Major Quantitative Indicators (KPIs)

Growth Strategy for Value Creation

On June 23, 2023, the Bank and Chibagin Securities
received administrative actions (Business Improvement
Three Pledges
Order) for situations where a problem related to theprotection of investors is recognized regarding theWhenever making a proposal to a customer or making a business decision,
we always stop and consider,financial instruments intermediary business.
Recognizing these to be matters of the utmost gravity,“Will this proposal or decision lead to
the Group is further strengthening customer-oriented
the realization of the customer’s wish?,”“Will this proposal or decision lead to a solution
initiatives to prevent recurrence and recover trust.
to the customer’s problem?,” andSpecifically, we position the Policy on Customer“Will this proposal or decision lead to the realization
oriented Business Operations (Fiduciary Duties) as anof a prosperous lifestyle for the customer?”important pillar for achievement of the Purpose andrealization of customer-oriented business operations
and have prepared the Fiduciary Duty Handbook, which outlines the mindset for customer-oriented
business operations, and established the Three Pledges, which are action principles for putting
customer-oriented business operations into practice. A card on which the Three Pledges are printed is
distributed to officers and employees so the will always be aware of fiduciary duties.
Monthly study sessions are held at workplaces, including Group companies, using these items.
Moreover, we established monthly “Fiduciary Duty Day.” On Fiduciary Duty Day, video messages fromthe president, Group Chief Risk Officer, and Group Chief Business Officer are sent to officers andemployees of the Group to communicate the management team’s aspirations. In this way, we are
striving to instill customer-oriented business operations.

Pursuing the best interests of our customers, we recommend asset diversification and time
diversification, such as “long-term, diversified, and savings investments.” Attending to our customers
as their partner in life, we support the realization of affluent lifestyles through personalized, goal-based
proposals for which we use our proposal tool “Okane no Basket.”Moreover, to measure the extent to which the Policy on Customer-oriented Business Operations(Fiduciary Duties) is practiced and the best interests of customers are pursued, we have establishedquantitative indicators (KPIs) and conduct regular monitoring. We also conduct qualitative evaluation
through interviews with employees and other means. Necessary improvements are made based on
the results of such evaluation.

Chiba Bank’s Value Creation

Initiatives for Instilling Customer-oriented Business Operations (Fiduciary Duties)

Pursuing the Best Interests of Customers

Messages

To improve our service and the marketability of the Group’s financial products and various
services, we compile feedback, including requests and complaints from customers and theopinions of branches, and step up our responses in our efforts to increase customer satisfaction.
As a regional financial institution that works closely with its customers, we will continue to pursue
customer-oriented business operations (fiduciary duties).

Identification and Analysis of Issues
Formulation and Implementation of Improvement Measures

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Management Base Supporting Value Creation

Risk Management

Overview of Risk Appetite Framework
I. Semiannual business strategy (risk appetite)

II. Monitoring (grasp the present situation/risk assessment)

Develop division-specific sales measures
Divisions

Identify and evaluate risk factors through regular monitoring

Principal measures (risk appetite policy)

Domestic Business

ALM

Risk taking policy
Formulation of earnings plan

Others

Promptly consider and implement risk reduction measures and reflect
them in measures for the following fiscal year
Large
ImpactSmall

III. Scenario analysis (loss analysis/profitability analysis)
Create a risk scenario and estimate the impact of loss for eachcompany and productAnalysis items
Scenario

Decline in value of owned assets
Cyberattack
Major system failure
Suspension of business due to large-scale
natural disaster, etc.
Delay in response to climate change

Integrated Risk Management System
The Bank Group assigns departments to manage risks for each form of risk, the Compliance andRisk Management Division centrally monitors these risks, and each committee discusses risk
countermeasures. The Group Chief Risk Officer (CRO) reports the status of risks to the Board of
Directors.
To ensure an effective risk management system, the Audit and Inspection Division conducts audits
for each risk category to determine whether risk is appropriately managed and reports the audit
results to the Board of Directors.
Risk Management Structure

Audit and Inspection Division
Board of Designated Directors(the internal audit section)

the impact of loss for each company or
Impact of loss Estimate
product (credit costs, valuation gains/losses, etc.)
Profitability

Verify the profitability of the assets to be analyzed aswell (RAROA, etc.)

Top Risk Management

Credit Risk
Management Committee

ALM Committee

Operational Risk
Management Committee

Cybersecurity Risk
Management Committee

Compliance and Risk Management Division [a section that coordinates risk management]
Integrated Risk

Market risk

Liquidity risk

Treasury Division
Treasury Operation Division

Credit risk
Business Support Division
Loan Support DivisionCorporate Planning Division

Operational risk
Operation Planning Division
Human Resources Division

EDP System DivisionCorporate Administration Division

Financial and Corporate Data

The Chiba Bank Group selects and manage those risks to our business that are highly significant
in terms of impact and probability as “top risks.” In selecting top risks, a risk map covering a wide
range of risk events inside and outside the Group is produced, also reflecting the opinions of eternal
experts. Then, after discussion, including by the outside directors and Group companies, the Boardof Directors selects top risks. For the selected top risks, risk scenarios (alarm points) are set underthe management of Group CxO in charge of each top risk, and specific measures are considered
and implemented. Through such top risk-based operations, we are striving to ensure deeper risk
communications and sharing of risk awareness within the Group, leading to forward-looking risk
management.
The Chiba Bank Integrated Report 2024

Audit & Supervisory Board

Board of Directors

Analysis contents
Set specific and probable scenarios*RAROA: Risk Adjusted Return on Asset99

Vigorous management support, core business support, and businesssuccession support to poorly performing customers
Setting and managing profit/loss alarm points for each asset and issue
Strengthening cybersecurity countermeasures
Prevention of occurrence and development of contingency plans
Reinforcement of business continuity preparedness through effective
training, etc.
Sophisticated simulation of transition and physical risks

Management Base Supporting Value Creation(Eg.) •Adjust/reduce positions•Manage positions by setting the upper limits•Secure and improve profitability (RAROA, RACC)•Strengthen monitoring and analysis•Maintain status quo in view of negligible impact

Increase in credit costs

Thorough filtering and screening

Evaluation contents

Change in the economic Is it within the expected range or is there
and market environment any unusual movement?
External
environment Trend of financial
Impact of the regulatory review on the Bank,
regulationsetc.
Are there any significant deviations between
Portfolio status
lending/investment plans and actual results?
Internal
Current level of value at Is it within the range of risk tolerance or isenvironment risk
there any unusual movement?
Are there any significant deviations between
RACC status
the RACC plan and actual results?
Operated

mainly by
the ALM
IV. Promptly consider/report/implement countermeasures Committee(PDCA)

Delays in digital transformation
Stagnation of sustainable growth due tolack of human resources and talent
Loss of trust due to insufficient customeroriented business operations
Inappropriate acts or omissions by officers
and employees
Inadequate measures against money
laundering

Human Capital Management

MarketMonitoring items

Decline in profitability due to deteriorationin operating baseRisk countermeasures (examples)
Expansion of revenue base through business expansion into newindustries and new business lines
Response to regional revitalization by providing accompanying support tolocal public bodies, etc.
Expanding app/portal features, systematic development of DX personnel
Enhancing staff engagement, providing support for career development,
and strengthening recruitment
Thorough implementation and instilling of customer-oriented business
operations (fiduciary duties)
Ensuring fair and honest behavior and strengthening the instilling ofappropriate corporate culture

Growth Strategy for Value Creation

The Bank utilizes a risk appetite framework (RAF), which is a system to verify the appropriateness of
the risk-return balance and the estimated impact of loss in a stress scenario against its risk appetite(types and total amount of risk that needs to be assumed to achieve business plans).
Under the RAF, the Bank operates the risk capital allocation system, verifies the degree of capital
adequacy by conducting stress tests, and verifies risk appetite based on highly probable scenario
analysis that takes into account changes in the internal and external environment.
The Bank monitors return after capital cost (RACC) to manage risk capital used to earn returns.
Using RACC, we verify whether or not we are earning profits that are commensurate with the risk
capital used by each division or we can withstand losses caused by economic fluctuations.

Top risks

Chiba Bank’s Value Creation

Risk Appetite Framework (RAF)

Top Risks in FY2024

Messages

As part of our efforts to maintain sound management, the Bank Group has developed a Basic
Policy on Risk Management, which focuses on accurate understanding and analysis of risks,
promotion of risk quantification and management through figures, and timely and appropriate
reporting. We are working in line with this basic policy to build a robust risk management system
to manage a variety of risks, including credit risk, market risk, liquidity risk, and operational risk.

Branches, Headquarters, Subsidiaries, etc.

Three lines of defense: The Bank’s risk management system has been built in accordance with the three lines of defense modelthat the Basel Committee on Banking Supervision recommends in its Corporate Governance Principles for Banks.
First line:
Operations divisions, which autonomously manage risks while conducting business operations in compliance withregulations, procedures, and other rules.
Second line: Corporate divisions that have jurisdiction over individual operational risks and the section that comprehensively
oversees and manages the broader risks of the Group.
Third line:
The internal audit section that evaluates and verifies the appropriateness and effectiveness of the Group’s internalmanagement systems from an independent standpoint.
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Management Base Supporting Value Creation

Risk Management

Integrated Risk Management

The risk of incurring aloss because of a declinein, or total loss of, thevalue of owned assets asa result of deterioration in
the financial soundnessof debtors

The risk of incurring a loss
due to a change in the valueof owned assets as a resultof fluctuations in interest
rates, prices of securities orother financial instruments,
or exchange rates

Liquidity Risk
Funding Risk

Market Liquidity Risk

The risk of incurring a loss due to failure to
maintain funding as a result of the inability
to secure necessary funds or the necessityof procuring funds at significantly higher
interest rates than usual due to theworsening of the financial institution’s
financial position or other circumstances

The risk of incurring a loss
due to the inability to trade on
markets or the necessity of
trading at prices significantly
less favorable than usual due
to market turmoil or othercircumstances

Operational Risk
The risk of incurring
losses due to theinappropriateness ofbusiness processes,
activities of directors andemployees, or systems
or external events

Credit Risk Management

Market Risk and Liquidity Risk Management

The Group categorizes the various forms of operational risk into clerical risk, system risk andcybersecurity risk, human risk, tangible asset risk, and reputational risk, and the corporate divisions
that have jurisdiction over operational risks collaborate in performing risk management under theoverall management of the Risk Management Department in the Compliance and Risk Management
Division.
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Human Resources
Division

Corporate
Administration
Division

EDP System Division

The risk of incurring aloss due to loss of publicconfidence resulting
from deterioration of theBank’s reputation or the
likeCompliance and Risk
Management Division
Risk Management
Department* The Compliance Management Department in the Compliance and Risk Management Division and the corporate divisions that have jurisdiction over operationalrisks jointly manage legal risk and compliance related risk included in the various risk categories.

<System Risk and Cybersecurity Risk Management>
At the Bank, the EDP System Division and the Risk Management Department in the Compliance andRisk Management Division work together to implement various measures in response to system risks
and cybersecurity risks, which have become increasingly important and noteworthy in recent years.
As specific measures against system risk, the Bank duplicates hardware and circuits for backbone
systems to ensure continuation of business even in the event of a failure. In addition, the Bank has
implemented the preparation of a contingency plan to provide for unforeseen circumstances such aslarge-scale disasters and conducts training in preparation for ATM failure on bank holidays.
As measures against cybersecurity risk, we have implemented measures to prevent the intrusion ofunauthorized programs including computer viruses and have developed steps to ensure the dataprotection of important computer systems. We also carry out regular training to ensure theeffectiveness of the management and readiness systems that we have developed for the event of acyber-attack.
Regarding the internet based services that we provide to customers, we take measures to prevent
denial-of-service attacks and computer system access by unauthorized persons as well as strictly
confirm that each transaction is made by the actual customer. We regularly pursue initiatives to raise
the awareness of our employees regarding the increasing sophistication of impersonation e-mails, aswell as the handling of suspicious or unfamiliar e-mails.
As a result of the various measures, we have not experienced a cyber risk event such as a data
breach. However, as cyber-attacks are becoming more sophisticated each year, we will continue tocollect information and implement measures at appropriate times.
In addition, we endeavor to ensure the security of the laptops, video teleconferencing software, andother tools that the employees use when working from home or remotely. With these and many othermeasures, we seek to enhance customer safety and security.

Business Continuity System

In addition to the risk management system described above, the Bank maintains a business continuity
system to allow essential operations to continue for the preservation of the financial system during an
unexpected disaster such as an earthquake or pandemic as well as the rapid restoration of operations
that the Bank would be forced to suspend during an emergency and mitigation of the impact tostrengthen resilience. While keeping in mind that human life is our first priority, in order to continue
providing stable services to customers, the Bank is upgrading its management systems, including its
countermeasures against a large-scale earthquake such as an earthquake directly under the Tokyo
Metropolitan area, and a variety of risks including storm and flood damage, which has become
increasingly severe in recent years, and epidemics.
The Chiba Bank Integrated Report 2024

Financial and Corporate Data

Operational Risk Management

The risk of incurring aloss from damage tobuildings or facilities, orthe like

Operation Planning
Division

Tangible Asset Risk Reputational Risk

Management Base Supporting Value Creation

The Group manages risk by setting risk limits for the amount of market risk determined by VaR foreach product, such as securities investments and other market transactions or loans and deposits, inan effort to ensure management soundness. In regard to market transactions, moreover, the Group
sets upper limits for market investments according to the balance and alarm point of valuationdifferences, and implements risk control by reviewing investment policy each quarter.
The market section is divided into the transaction execution unit (Treasury Division and overseas
branches) and the business administration unit (Treasury Operation Division), and the risk
management unit (Market Risk Management Department in the Compliance and Risk Management
Division) has been established, creating a reciprocal and mutually reinforcing management structure.
At the Bank, funding risk is managed by investing funds within a set limit so as not to procureexcessive amounts of funds on the market and by maintaining a certain minimum level of assets thatcan be converted to cash in a short time. Market liquidity risk is controlled by setting position limits foreach market transaction.
The section that manages risk strives to avoid increases in liquidity risk by identifying and assessing
various factors that affect liquidity risk and monitoring the observance of limits.
The Bank has established a business continuity plan that provides for a rapid response across the
Bank in the event of unforeseen circumstances that could affect the Bank’s funding.

Human Risk
The risk of incurring aloss due to workplacesafety, discrimination, or
the like

Human Capital Management

The Group has developed a rigorous credit risk management system centered on an internal credit
rating system and engages in individual credit management and credit portfolio management. In the
self-assessment of assets, the Group implements appropriate write-offs and provisions.
The Credit Risk Management Committee meets regularly, in order primarily to consider credit risk
management policy and to monitor the operation of the internal credit rating system and the credit
portfolio.

Cybersecurity Risk
The risk of incurring aloss from the occurrenceof a risk event that falls
under system risk due tocyber-attacks

Growth Strategy for Value Creation

Market Risk

System Risk
The risk of incurring
a loss resulting froma leak or falsificationof information ownedby the Bank or theunauthorized use, failure,
or incorrect operation ofcomputer systems

Chiba Bank’s Value Creation

Credit Risk

Clerical Risk
The risk of incurring aloss due to the failure
to perform accurate
clerical work, clerical
accidents or fraud, orthe failure to performofficial obligations orprovide explanations tocustomers

Messages

The term “integrated risk” refers to the sum of the measurements of credit risk, market risk, andoperational risk, which are forms of risk that can be managed by means of risk quantification. In theGroup, verification of the adequacy of capital with respect to quantified integrated risk is conducted
and the results are regularly reported to the Board of Directors and stress tests are also conducted.
Stress tests are a means of verification of capital adequacy that involves the assumption of certain
stress scenarios and forecasting the increase in the value at risk based on the scenarios. The resultsof stress tests are also reflected in capital policies such as dividends and acquisitions of treasury
shares.
Furthermore, as a framework for integrated risk management, the Group has introduced and utilizes
a risk capital allocation system to set and manage the maximum amount of risk capital used to control
the occurrence of losses.

The Group has established an Operational Risk Management Committee and developed amanagement structure for monitoring the state of operational risk losses and improving and correcting
problem areas. In addition, to ensure the effectiveness of management, the Group has introduced
Control Self Assessment (CSA).

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