Bank Restructuring Project, Nepal Bank Limited Disclaimer Banking & Non-Bank Financial Markets: Relevant Projects Illustrative List of IBTCI Projects in Banking and Non-Bank Financial Markets: Africa: Capital Market Program (AfDB): IBTCI provided technical assistance to the President of the African Development Bank (AfDB) to conceptualize, create and manage a capital market program based on the International Finance Corporation (IFC) mode. The assistance included analysis of the role and impact of central banks, stock exchanges, bond markets, ministries of finance and an assortment of investment funds. Africa: Towards Improving the Competitiveness of African Business (AfDB): IBTCI assisted in defining the role and methodology of the African Development Bank (AfDB) lending to the private sector. IBTCI authored a major part of the Board Paper for the Board of the AfDB for setting up a department to lend to the private sector. Bangladesh: Enterprise Growth and Modernization Project/Team of Experts for Sonali Bank (WB): The primary goal of the Advisory Team was to help stabilize the operations of the Bank and develop an operating plan consistent with a cost-effective approach to managing the Bank’s operations. The Advisory Team took all the necessary actions to instill international best practices at the Bank (particularly credit approval and accounting procedures), and determine all the necessary day-to-day activities and management procedures required to ensure data integrity and timeliness, and to strengthen the whole process of credit approval, review, control and monitoring. Bhutan: Developing Capacity on Investment Management for the National Pension and Provident Fund(WB): The main object of the consultancy was to create capacity within the National Pension and Provident Fund on investment management so that NPPF assets were invested in the best interest of members. The scope of work involved activities in three different areas: investment management, accounting systems, and stochastic modeling. Bhutan: Strengthening of the Payment and Settlement System (ADB): The project’s goal was to establish an integrated payment and settlement system throughout Bhutan. Legal modalities, institutional arrangements, and current practices were reviewed, with a view to designing a comprehensive, computerized payment and settlement system. Bulgaria: Central Securities Depository / Clearance and Settlement System Development Project (USAID): IBTCI assisted in the development of fully integrated clearance, settlement, and depository and back office operations to facilitate the transfer of state-owned assets to the private sector. Assistance was provided in designing and implementing a public awareness program, institutional development, and bank office training. IBTCI also facilitated the transfer of state-owned assets to the private sector by establishing a fully designed Central Securities depository. Caribbean Region: Eastern Caribbean Central Bank (ECCB) Payment Systems (FIRST): The IBTCI team implemented the legal, regulatory and governance reform of key payment systems. The team assessed each payment system and covered operations against international standards. Caribbean Region: Eastern Caribbean Central Bank (ECCB) Payment Systems Improvement Project, ACH Vendor Selection (FIRST): The IBTCI team assessed the structure and performance of the existing retail payment system and made recommendations for improvement; and ensured the strategy, plan, and resources to implement a modern RTGS were properly formatted and established a line of funding. Central Africa: Development of Long Term Finance Capacity (FIRST): The IBTCI team will assist with a demand and supply study of the availability of medium and long term finance and the barriers to raising and disbursing such finance in each of the countries of the CEMAC region; conduct an audit of the capabilities and capacity of human resources, and assist in the commencement of lending activities in line with the business plan of BDEAC. China: Foreign Bank Rating and Risk Management System (ADB): IBTCI’s risk management specialist assisted the China Banking Regulatory Commission (CBRC) staff with practical knowledge in risk-based supervision and organizing training activities. Croatia: Capital Markets and Infrastructure Development (USAID): IBTCI focused on the development of a strategy for the implementation of recommendations for a securities central depository, securities registry and for a clearing and settlement system. Czech Republic: Pre-Privatization of "Ceskoslenvska Obchodni Banka" (USAID): IBTCI assisted with the pre-privatization of one of the largest banks in the Czech Republic in systems transformation, treasury / risk management, and problem loan work out. IBTCI developed and adopted a Manual of Treasury Rules and Regulations; implemented a risk management process; and implemented Risk Adjusted Capital adequacy methodology. IBTCI established a quality assurance and standards center, and drafted standards for bank transactions, as well as modified the software platforms so that it was tailored to the particular risk management needs. Egypt: Capital Markets Procedures Study (USAID): IBTCI reviewed the laws and regulations governing the issues of Capital Markets procedures and operations for the Government of Egypt. The activities of the project included assessing the current operations of the Cairo Stock Exchange from the perspectives of listing and registration regulations and procedures, trading, clearance / settlement, custody, share registration, and financial sector participants. IBTCI also reviewed the selected firm's share floatation and recommended immediate and long-term solutions. Egypt: Capital Markets Growth and Development Study (USAID): IBTCI performed a study on Capital Markets Growth and Development in Egypt for the Government of Egypt. IBTCI updated past studies on capital markets, analyzed the changed conditions and further described the functioning of the new system. The study focused on specific aspects of the privatization program which impact the development of Egypt's capital markets, current market participants, operating procedures of micro-financial institutions and other related issues. IBTCI authored special studies on capital markets operations, legal and regulatory environment, and privatization organizational structure, and conducted a baseline assessment on economic and performance indicators. Egypt: Evaluation Services for the Banks and Enterprises Privatization Program in Egypt (USAID): IBTCI performed all monitoring and evaluating of the program for the privatization of banks and enterprises in Egypt and tracked the progress of the Egyptian government's privatization program. IBTCI also tracked the performance of the technical assistance contractors, the economic and business climate in Egypt, provided policy studies, and created a computerized database of state-owned enterprises. Ethiopia: Management Development Services to Commercial Bank of Ethiopia (ICC/Bank of Scotland): IBTCI provided services (through a placement via Bank of Scotland (Ireland) ICC Consulting) of a long term accounting and financial management advisor to develop a financial and MIS package, working with the senior management of the Bank. The advisor developed the concept of measuring true organizational unit profitability using the transfer pool concept and allocation of all costs; for the finance department proposed an organization structure on a functional basis for greater effectiveness; developed a new procedure for handling inter-branch transaction and tested in a pilot district; proposed a more effective process for building budgets; developed procedures for determining the economic feasibility of new branches and proposed procedures for approving capital expenditures. He also developed a banking course and conducted training for several staff members and developed product profitability and policies and procedures manual covering all items on the balance sheet and the income statement. Georgia: Georgia Insurance Supervisory Strengthening (FIRST): The IBTCI team strengthened the effective supervisory capacity of the Insurance State Supervision Service (ISSS) in the life insurance and pensions sector. This project produced: primary and secondary legislation based on IAIS principles but tailored to the circumstances of the Georgian insurance sector covering regulation and supervision of its life insurance industry; a training unit established within the ISSS capable of training supervisors of the life insurance and pensions industry to IAIS standards; recommendations on creating the framework for developing private pension investment delivered; and a roadmap for the future development of the supervisory system. Indonesia: Development of a Deposit Insurance Scheme (ADB): IBTCI provided technical assistance in support of the Indonesian Government's financial sector reform program. IBTCI examined the issues related to establishing a deposit insurance system as part of a transition from the current blanket Government guarantee of bank deposits and most bank liabilities to one predicated upon a more limited, self-funding deposit protection scheme. IBTCI made recommendations incorporating international "best practices" with respect to dealing with insolvent banks, protecting depositors, and limiting effects of bank failures. Indonesia: Secretariat for the Independent Review Committee (WB): IBTCI assisted with the evaluation of the quality of governance provided by the Indonesian Bank Restructuring Agency (IBRA), its institutional capacity, transparency of operations and the performance of IBRA and its Asset Management Units in meeting established targets. Indonesia: Bank of Indonesia Banking Activities Advisory Services (ADB): IBTCI assisted in the supervision of a large-scale ADB financial review process of commercial banks under the Bank of Indonesia (BOI). Bank restructuring technical advice related to guidance and coordination review and sample methodology, assessment of the quality of financial reviews, and the consistency of loan classifications were accomplished. IBTCI also provided project management in the form of developing detailed financial reviews, monitoring the progress of the financial reviews, and ensuring quality control. IBTCI assessed, evaluated, and implemented management information systems in more than 150 institutions. Jamaica: Developing Minimum Actuarial Standards and Strengthening Capacity (IDB): IBTCI provided on the job training, technical advice and guidance, consistent with international best practices, as needed to the Chief Actuary with respect to all actuarial matters concerning regulated entities. Technical Assistance will be provided on a range of actuarial issues as they relate to the interpretation and implementation of the Insurance Act, Pensions Act, related legislation and standards. Jordan: Consolidated Banking Sector Supervision Training Procedures and Standards (USAID): IBTCI conducted training for the Central Bank of Jordan (CBJ) and commercial bank employees on various issues relevant to the development of the financial sector in Jordan. This training covered special aspects of risk management, electronic data processing and banking supervision. Topics that were covered included foreign exchange, risk assessment criteria for commercial banks, problem resolution, and derivative and interest rate risk training. The also trained the CBJ inspectors on how to inspect foreign branches of Jordanian banks abroad. Jordan: Technical Assistance to the Central Bank of Jordan (USAID): IBTCI provided assistance to the Central Bank of Jordan (CBJ) on legal, regulatory and procedural aspects of bank supervision. Emphasis was provided on achieving supervision standards according to Basle Convention Standards with a strong focus on the supervision of international banks with branches in Jordan. IBTCI reviewed and refined automated reporting requirements and recommended processes to be used. Recommendations were made on legal, regulatory, and procedural aspects of bank supervision, including banking laws, draft legislation, regulation processes, and appropriate practices. Jordan: Technical Assistance to Jordan Loan Guarantee Corporation (USAID): IBTCI provided technical assistance and training in the areas of banking and financial markets, privatization and export/import promotion. IBTCI assessed the demand for the Jordan Loan Guarantee Corporation's (JLGC) services, defined its market and improved the effectiveness of its services. IBTCI also identified the institutions and organizations most likely to need financing. IBTCI provided training in administrative processes and procedures required for loan review, credit analysis, and loan distribution. IBTCI also conducted surveys to establish the JLGC demand and usefulness. Kazakhstan: Financial Restructuring Technical Assistance to the National Bank of the Republic of Kazakhstan (USAID): IBTCI provided long-term technical support and training to the National Bank of the Republic of Kazakhstan (NBRK) and Kazakh commercial banks, in support of financial sector reform in Kazakhstan. The objectives were to improve the financial system management capabilities of the NBRK and to promote new accounting and operations practices within the commercial banking sector. IBTCI designed and issued a new chart of accounts, a bridging (mapping) table from the old system to the new one, developed a subsidiary ledger, and developed an automated interface between the subsidiary and the ledger. Kazakhstan: External Debt Management Project (USAID): IBTCI provided technical services and training to the staff of the Kazakhstan Ministry of Finance (Minim). The objective of the project was to install a computerized Debt Management and Financial Analysis System (DMFAS) database and train the staff of the State Debt Office in using the updated machinery. IBTCI designed and implemented the next phase of automated systems for banking operations including accounting and administrative operations and reporting. IBTCI also developed the system training program for inspectors and analysts, which included a number of training options and a range of courses. Kenya: Restructuring Project for Development Finance Institutions (WB): IBTCI conducted a review of RBC Dominion Securities Report, reorganized the portfolio management teams, reshaped the balance sheets and establish options for creating strong balance sheets. The tasks of this project included an initial strategic review, credit management, treasury, asset and liability management, review of accounting, MIS and internal control, marketing and market analysis, review and implementation of reporting systems, and production systems manuals. Korea: Financial Sector Reform Advisory Services (ADB): IBTCI supported the Korean Government in the wake of a liquidity and currency crises by transforming the Governments financial system into a competitive service. This was achieved through the identification and correction of policy and structural weaknesses. IBTCI reviewed and analyzed the policy, institutional, financial, legal and regulatory issues that had an impact on the measures Korea agencies were considering at that time. IBTCI also provided technical and analytical support to the ADB on all key elements of the program including commercial bank restructuring, pension funds, non-bank financial institutions, and corporate accounting and disclosure standards. Kosovo: Technical Assistance for the Establishment and Management of an Interim Credit Union for Lending to Small & Medium Sized Enterprises (EAR): IBTCI assisted the prime contractor in developing the SME community in Kosovo through the provision of affordable credit. The pilot SME credit line channeled funds to financially and technically viable investment projects presented by the SMEs. Technical assistance was provided to ensure that proper loan portfolio management systems were in place to achieve a high standard of loan recovery, and efficient recycling of funds. Training and technical assistance was provided to local staff and bankers for maximum skills transfer. Kyrgyz Republic: Financial Restructuring and Monetary Policy Technical Assistance to the Central Bank of Kyrgyzstan (USAID): IBTCI provided long-term technical support and training in accounting, operations, credit administration and management information systems in support of financial sector reform in the Kyrgyz Republic and to improve the financial accounting system management capabilities of the National Bank of the Kyrgyz Republic (NBKR). IBTCI's assistance to the NBKR focused on the conversion of the National Bank to International Accounting Standards (IAS) as well as converting all the commercial banks to IAS. IBTCI fully converted all 22 commercial banks in Kyrgyz Republic, and trained senior managers on how to use the new accounting systems. Kyrgyz Republic: Public Education and Information Program (USAID): IBTCI provided long-term technical assistance and training in the design and implementation of a national public awareness program in support of mass privatization and capital market development. IBTCI managed the awareness program and conducted television, radio and newspaper campaigns in addition to opinion surveys and polls to determine the effectiveness of reform efforts. Kyrgyz Republic: Supervision of Micro-Finance Institutions (ADB): IBTCI assisted the National Bank of the Kyrgyz Republic (NBKR) with technical assistance to strengthen the bank's capacity to regulate and supervise micro-finance institutions and savings and credit unions. Our on-site specialist reviewed current laws and regulations, created policies, procedures, and systems to support NBKR supervision; implemented the new policies, procedures, and systems; reviewed, revised, and updated the temporary regulations; assessed the supervision capacity of NBKR by analyzing staff structure; made recommendations on building and improving staff; prepared methodology, policies, and procedures for on-site supervision; created an on-site supervision manual, provided on the job training; and advised on appropriate computer software programs to be used to facilitate supervision. Lithuania: Strengthening Bank Supervision, Phase III (USAID): IBTCI provided assistance to the Bank of Lithuania (BoL) in the area of on-site supervision to consolidate gains made over the previous three years. IBTCI continued the institutional development through policy advice to the advisors; trained the bank personnel in more sophisticated supervisory techniques; and developed a further range of techniques for dealing with banks which are not in compliance with banking regulations. Lithuania: The National Bank of Lithuania Bank Supervision Development Program, Phase IV (USAID): IBTCI promoted the development of a safe, sound market-oriented banking system in Lithuania by assisting the Bank Supervision Department (BSD) of the National Bank of Lithuania (NBL) to strengthen and refine its bank supervision and monitoring capabilities through training on-site prudential inspection techniques; the development of an on-site inspection manual; and through better enforcement policies and procedures. IBTCI also assessed the banks credit management policies, strategic planning, and asset/liability management. Moldova: Support of Capital Markets Infrastructure and Acceleration of Cash Auctions of Residual and Reserved Shares (USAID): IBTCI fostered economic growth in Moldova through continued privatization of residual and reserved shares and stimulated enterprise restructuring and corporate governance. This project also sought to strengthen the capital market infrastructure through capacity building, increased participation by the broker-dealer and investment fund community and the simulation of more activity. IBTCI addressed the privatization of 330 enterprises by using cash auction sales. IBTCI also gave general legal advice and evaluated, selected, and prepared the enterprises for privatization. Mongolia: Developing a Regulatory Framework for Non-Bank Financial Institutions (ADB): IBTCI assisted the Bank of Mongolia, the Mongolian Securities and Exchange Commission, the Ministries of Finance and Justice, and other government entities to draft regulations to supervise non-bank financial institutions. IBTCI assisted the agencies to define the difference between banks and non-banks, and to divide jurisdiction over the various financial institutions. The areas covered by the draft regulations included general and licensing provisions, supervision of non-bank financial institutions, cooperatives, credit unions, and pawn shops. Mongolia: Strengthening Restructuring of the Banking System, The Agricultural Bank of Mongolia (ADB): IBTCI reviewed the options available for salvaging the viable components of the Agricultural Bank (AB) in an institutional framework that would be economically viable over the long term. The project objective was to ensure that all options available were pragmatically explored so that the Bank of Mongolia had a full range of options available to it. Mongolia: Institutional Strengthening of the Financial Intermediaries (ADB): IBTCI assisted the ADB at the Mongolian central bank in the re-capitalization/restructuring of strategies to train supervisors and to strengthen the institutional capability of banks in credit management, internal audit procedures, management information systems and asset/liability management. IBTCI conducted a review of the five largest commercial banks and proposed a restructuring strategy that would motivate the banks. This strategy included on the job training in lending tools, credit appraisal, credit approval and handling non-performing assets, and asset-liability management. Nepal: Capital Market Development Phase II (USAID): IBTCI revived and further developed the capital market in order to turn it into a reliable and efficient mechanism to mobilize savings for growing private investment. IBTCI worked on strengthening the regulatory framework on market practices, strengthening the monitoring and enforcement functions of regulatory agencies, producing a feasibility study on the establishment of an Investor Protection Fund, increasing the demand for and supply of securities, modernizing the Nepal Stock Exchange, and training all relevant government officials in the supervision and management of stock exchange operations. Nepal: Small Scale Technical Assistance for Financial Sector Regulation and Governance (ADB): IBTCI provided technical assistance to the Government of Nepal in developing a proper regulatory system for financial governance for the non-bank financial segment of the financial sector. IBTCI evaluated options for a unified prudential regulatory and supervisory system and approach, including non-banking sector, including DFIs and capital market activities. A review was also conducted of existing accounting and tax laws and related procedures with relevance. Nepal: Nepal Financial Sector Technical Assistance Project (WB): IBTCI and a partner firm assisted in the restructuring and management of Nepal Bank Limited. Technical Assistance was provided in the areas of bank management and operations, credit review, internal auditing, management information systems, asset/liability management, human resources management, accounting review and loan portfolio management. The aim is to stabilize the bank and restore financial health by taking control of the bank in an effort to stem existing loses. Nigeria: Call Down Framework: Computation of Lump Sum Payment to Pensioners (DFID): At a privatized bank, the IBTCI actuarist identified all the eligible affected pensioners, both current and deferred, compiled and verified a comprehensive list, computed individual and total amounts and made appropriate recommendations to Bureau of Privatization Enterprises. Philippines: Development of Information Technology Supervision Capacity (WB): IBTCI was a subcontractor to DFC Limited under this ASEM grant. IBTCI was responsible for establishing an IT supervision function with the Bangko Sentral ng Pilipinas (BSP), including the development of all required supporting infrastructure. Rwanda: Modernization of the Rwanda National Payment System, Phase I (FIRST): IBTCI and the Belgian Bankers Academy had the goal of modernizing the Banking Systems in Rwanda. The project aimed to improve the payment system operated by the banks. The main objective was to enable the banks to become the acknowledged intermediary between the payment system of the banks and the invoicing system of the service providers. Rwanda: Modernization of the Rwanda National Payment System, Phase II (FIRST): The project linked six commercial banks and service providers: Rwanda Revenue Authority, ACI World-wide (service provider for the switch processing 24-ES and the CMS card management system), Terracom (which is developing optical fiber cable that may be used for the SIMTEL VPN), Electrogaz (the electricity, gas and water company), Rwandatel (the telephone company), etc. The main objective of this project was to enable the banks become the acknowledged intermediary between the customer and the service provider, by developing an automated connection between the payment system of the banks and the invoicing system of the service providers. A team provided TA to: assess the existing telecom infrastructure, technologies and resources currently in place and as requested under this project, the institutional capacities/systems of the service provider/s envisioned to be part of the process, etc; and assess the feasibility of building software for the banks and service providers, with data exchange online rather than by floppy disks. If the online approach seemed feasible, assess the requirements of global funding (from FIRST, BNR, banks and service providers), the extent of the changes required to the legal/regulatory framework and the timeframe for making those changes, etc; and comment on the project management structure and resourcing. A feasibility study for developing an online system for connecting bank’s payment systems with suppliers’ invoicing systems was be developed along with an action plan for implementation. Saudi Arabia: Insurance and Pension Study (WB): IBTCI advisor was contracted by the World Bank to conduct a study of the insurance and pension sector in Saudi Arabia. IBTCI provided draft recommendations and a roadmap for future work. Sierra Leone: Supervision of NBFIs -- Assessment and Capacity Building (FIRST): IBTCI was contracted by the FIRST Initiative to make an assessment of and help build the capacity of the Bank of Sierra Leone’s supervision of NBFIs. This project included: an assessment of the current institutional arrangements; regulation needs; enforcement/supervisory issues; supervision capacity and training needs in the Bank of Sierra Leone (BSL) and the Insurance Commission. Slovakia: The National Bank of Slovakia Bank Supervision Development Program, Phase III (USAID): IBTCI promoted the development of a safe, sound market-oriented banking system in Slovakia by assisting the Bank Supervision Department (BSD) of the National Bank of Slovakia (NBS) in strengthening and refining its bank supervision and monitoring capabilities through training on-site prudential inspection techniques; by the development of an on-site inspection manual; and through better enforcement policies and procedures. IBTCI also reviewed the laws/regulations that related to enforcement actions and recommended changes to carry out legal remedies. Ukraine: Financial Infrastructure Development, International Accounting Standard (IAS) (USAID): IBTCI assisted the National Bank of Ukraine (NBU) with the implementation of International Accounting Standards (IAS) in the commercial banking sector. The project developed procedures to assist the NBU and several pilot banks in the adaptation and implementation of IAS. Bank IT departments and local software suppliers were also assisted to ensure that bank accounting systems could accommodate IAS procedures and regulatory reporting. IBTCI worked with the commercial banks to completely overhaul their accounting and reporting systems including providing assistance in the implementation of a chart of accounts and new general ledgers. Uzbekistan: Financial Restructuring Technical Assistance to the Central Bank of Uzbekistan (USAID): In support of financial sector reform in Uzbekistan, IBTCI provided long-term technical assistance and training to the Central Bank of Uzbekistan (CBU) and Uzbek commercial banks. The objectives were to strengthen the CBU as a regulatory body, improve the financial system management capabilities of the CBU and to promote new accounting, operations and credit practices within the commercial banking sector. IBTCI assisted in the full implementation of International Accounting Standards, ultimately resulting in transparency in financial reporting, and provided methodology-based accounting training developed by IBTCI. Uzbekistan: Commercial Banking Skills at the Regional Bank Training Center and Banking Finance Academy (ADB): IBTCI provided commercial bank skills training at the Regional Bank Training Center (RBTC) and Banking and Finance Academy (BFA) in Tashkent. The objective of the project was to improve the efficiency of intermediation in the delivery function of the banking system by introducing international best practices to the country's commercial banking system. IBTCI delivered 28 courses based on modules designed by IBTCI to 960 bankers. Subjects included loan workout techniques, bank analysis, various aspects of bank supervision, management of credit administration, and generally accepted standards and procedures for conducting bank credit committees. Vietnam: Commercial Bank Payment Systems Modernization (WB): IBTCI worked with the Bank for Investment and Development of Vietnam (BIDV) to improve payment services, enhance the speed and efficiency of money circulation, provide convenient banking services and strengthen the institutional capacities of participating banks in order to encourage commercial banks to improve their internal management and customer services. IBTCI developed a modern bank with a comprehensive business strategy, an IT strategy that is appropriate with this business strategy, and a human resource development plan.