Related party transaction requires the ability to identify and evaluate all types or relationships upstream and downstream the organizational chart including those among and between subsidiaries, associates, investees and any other entities that might be influenced by common set of owners or directors/key management or immediate family members thereof.

Significant inter-company transactions between entities in the group (PNB, Subsidiaries, Affiliates and other entities that are members of the conglomerate), shall include onbalance sheet and off-balance sheet such as:

• Credit exposures and claims;
• Investments;
• Dealings such as service contracts;
• Assets purchases and sales;
• Construction contracts;
• Joint Venture Projects;
• Lease Agreements;
• Rendering or receiving of services;
• Agency Arrangements;
• Derivative Transactions;
• Fund Transfers;
• Due to Banks;
• Borrowings and Payables;
• Transfer of Technology;
• DOSRI;
• Guarantees; and
• Donations to Foundation

The policies and procedures for related party transactions between the bank and its related parties are reviewed, approved and ratified by the Board of Directors. Related party transactions and DOSRI transactions may be allowed provided that these comply with regulatory limits/requirements and dealings are conducted at arm’s length basis.