IMPLEMENTED PROJECTS > JSC "Aiyl Bank" Institutional Building Adviser - Preparation for transformation to a bank
- Country – Kyrgyzstan
- Donor – EBRD
- Duration – 6 months
- Status – completed
The purpose of the project was to assist JSC “Aiyl Bank” in its transformation into a rural bank through institutional strengthening measures. The project had the following objectives:
- strengthening the bank’s risk management function
- strengthening the internal audit function
- strengthening the corporate governance
- upgrading of the management information system and the information technologies
The risk management function was strengthened through capacity building activities (training and seminars) for the Aiyl Bank’s top management and experts on risk management; consulting on improvement of risk assessment procedures, risk management policy and operational documents.
The internal audit function was enhanced by development of an audit manual to serve as a reference material, sample audit of the bank’s selected HQ department and branch and capacity building activities for the audit staff.
The corporate governance function was consolidated through design and implementation of top management assessment tools, drafting terms of reference for the activity of the Bank´s governing authorities such as the Board of Directors and its individual members, the Management Board and the Audit Committee; training of the top management on best practices of corporate governance.
Activities aimed at diversification of credit portfolio were also implemented as a result of the request made by the bank. Under the project activities IT and MIS review was also carried out, need for upgrading identified and the necessary equipment procured.
Specific activities implemented under the project included:
- capacity building of the bank’s management and staff through seminars and on-the-job training in risk management, internal audit, corporate governance and credit diversification;
- design and implementation of financial management concepts and procedures; set-up the accounting and auditing systems; develop the appropriate software for daily financial operation;
- advice on development and implementation of new credit products;
- develop and introduce credit products for different target groups according to their needs; draft lending criteria and procedures and support their implementation within the institution;
- develop a business strategy and its short- and medium-term implementation plan to achieve sustainability of the new institution;
- training of bank staff in credit appraisal, supervision, credit portfolio management and risk management, focusing on specific feature of agricultural sector.