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Resident Banking Advisornkb

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This tender with title Resident Banking Advisornkb has been published on Bidding Source portal dated 21 Nov 2018 for the country of Afghanistan. It has been categorized on Banking services. For similar tenders you can see tenders mentioned below of this page.

General Information

Resident Banking Advisornkb
Request for Expression of Interest
OP00055845
N/A
21 Nov 2018
27 Nov 2018
English
Ministry of Finance
World Bank
Banking services

 

Terms of Reference

for

International ResidentbankingAdvisor New Kabul Bank (NKB)

 

 

 

 

 

 

 

 

 

 

Position

Resident Banking ?Advisor ( International )

Selectin g Organisation Name

New Kabul Bank (NKB)

Duty Station

Kab ul Afghanistan New Kabul Bank MainOffice

Website

http://newkabulbank.af/english/

Gender

Male/Female

Nationality

Male/Female International
Full Time

Education

Education: Master

 

Contract Duration

One year with possibility of extension

 

 

Background o f theAssignment

The Government of the Islamic Republic of Afghanistan (GoIRA) has embarked on the execution ofanambitious strategy to reform and modernize the State Owned Banking sector (SB) of Afghanistan, with the aim to establish the Sta teOwned Banks as financial and economic sustainability institutions which will provide a meaningful contribution towards GoIRA’s aim of increasing financial inclusion and access to finance for all Afghan economic and social sectors, thereby contributing toGoIRA’s objective of fostering economic growth and job creation. Implementation of GoIRA’s reform and modernizationstrategy will be supported by the World Bank funded ‘Modernizing Afghan State Owned Banks’ project.

The strategyy se straks to modernize and reform SB in three fundamental areas: (a) Corporate Governance, (b) institutional development andbusinesses ategy, and (c) information technology systems.

Essential elements of the strategy will be (a) the consolidationof the secto r and number of institution, (b) the definition and implementation of a sustainable business strategy, which combinesGoIRA financia l sustainability and outreach, and (c) the review and adjustment of the size of institutions in accordance to theirrespective manda te and business strategy.

State Owned Banking Sector

The State-Owned Banking sector ofAfghanistan currentl y comprises three bamkng institutions, all of which are dutifully established under Law and regualted by theCentral Bank of Afghani stan: Bank-E-Millie Afghan (BMA) and Pashtany Bank (PB) have been historicall state-owned and wereestablished originally in 1933 an d 1954, respectively. New Kabul Bank (NKB) was only established 2011 as part of the resolutionefforts and nationalization of the co llapsed privately-held Kabul Bank.

At the end of 2016 the three institution combinefor total assets of approximately US$1,0 63 million, equivalent to a share of about 27% of total banking assets in the country.However, despite their relvance in terms of a ssets relative to the rest of the banking sector, SBs play only a very limited rolein terms of intermediation and provision of fina ncing to the private sector. In fact, two of the three institutions – PB andNKB - at present operate under special regulatoryregimes as ‘narrow’ banks limited to savings business, as well asbanking and payment services, as a result of their ca pital deficiency until end of 2016. Only BMA has a minor active loan bookthat represents about 7 percent of total assets and is com posed of exposures to approximately 150 mainly corporate clients. As aresult, all SB are holding elevated liquidity levels, equal t o between 70% (BMA) and 84% (NKB) of total assets at the end of 2016.In consequence, the principle income drivers of the three inst itutions are investment income from placing liquid funds and netservice and commission income.

The modest assets size and i ntermediation contribution belies the significance of SB interms of access to finance and financial inclusion. With a total of 131 branches the three SBs account for almost ¼ of allbank branches in the country. Fruthermore, SB as a whole are the only inst itutions with coverage in all provinces. Furthermore, atthe end of 2016 the SBs combined for roughly 2,300 employees, equivalent toabout ¼ of all sector staff.

Over thelast decade the operational and financial performance of the SBs has been chal lenged as much by the adverse operating environmentas by institutional constraints. This included the repeated use of the instituti ons for achieving political, social andconstituency objectives in disregard of financial considerations and their economic viabilit y. Poor performance especially withregards to the origination, administration and recovery risks but also more broadly the overall operations and administration ofthe institutions has undermined their viability, resulting over time in substantial fiscal burdens through successive rounds ofsignificant loan losses, equity write-downs, and recapitalizations.

Moreover, poor exercise of ownership interests and weakcorporate governance structures have impeded development of a coherent business strategy and market app roach for the institution,which would foster the economic and developmental goals of GoIRA while safeguarding the financial sustain ability of theinstitutions.

Going forward GoIRA strategy for SB envisages the reorganization of the SB’s and integrat ing theiroperations. As a result, it is anticipated that NKB’s brand will be discontinued and over time the entity will legal ly beextinguished.

Description:

To support its ambitious reform and modernization efforts f orthe SB sector and the transformation for NKB in particular, GoIRA is seeking to contract qualified consultant services as long term resident advisors to NKB.

The consultant is expected to provide support to NKB CEO, Board management and Board ofSupervisors, and other relevant stakeholders in formulating and implementing the transformation plan for NKB, based on the strategicc visio Supervis outlined by GoIRA for integrating SB’s operations, while guaranteeing the continued successful execution ofcurrent bduring the transition period. This will include – but not be limited – to the detailed definition of atransition road- map, identification of implementation steps and resources requirements, including a HR transition plan,establishment of relevant op erational and risk control measures and design of adequate internal and external communicationstrategy.

Scope ofServices:

The Resident Advisor will provide on-going support and inputto the transformation process of NKB an d to the Bank’s management and Supervisory Board, ownership representatives and otherrelevant stakeholders. The Scope of Serv ices is expected to cover support in all relevant strategic, policy and technical aspectsof the process, ranging from supporting hi gh level definitions of strategy to hands-on support in the implementationprocess.

Broadly the Scope of Services is dividedin activities in three areas, as outline below in moredetails:

  1. Strategic and policy advisory

The Resident Advisor will providesupport and technical advice in operationalizing and implementing the strategy ofGoIRA. Specifically, the Resident Advisor willsupport NKB management and Supervisory Board in:

  • Assessing, reviewingand recommending the development andimplementation of a detailed business and strategic plan and the corresponding implementation plan.
  • Advising on theexecution of the business strategy during the transition process, in order to guarantee uninterrupte d execution of businessobjectives and operational performance.
  • Supporting valuation processes of assets and contracts.
  • Assessingresources needs and HR requirements; including determination of HR capacities.
  • Designing HR process to a ddress theintegration and consolidation process.
  • Developing branch assessment methodology to determine optimal branch location.
  • Establishing outreach and communication with all relevant stakeholders
  • Documenting progress andchallenges in the transition and integration process and implementing appropriate M&E approaches.
  • Identifying non-straategic as challengeets and determining an implementation plan for their divestment
  • Supporting Risk &Compliance Mana ring the transition period, including the definition of a risk, compliance and audit strategy, improvements in riskmanagement, comp liance and audit policies and procedures, and capacity building for functions
  • preparation of operationaland financial pol icies and procedures
  • support the bank management to improve banks’ CAMELperformance
  • support the bank to m aintain sound Corporate Governance in line with central bankrequirements

 

  1. Operationa l and business executionsupport

Given the relevance of NKB for payroll services in Afghanistan, particu larly for the publicsector and the security services, particular care will be placed to maintain business services uninterrupted du ring the transitionand integration process. The Resident Advisor will support NKB CEO, Board of Management and Supervisory Board tothat effect bysupporting the development and implementation of detailed operational procedures and contingency plans. Specifically , the ResidentAdvisor will support Management and the Supervisory Board in:

Thetransition and i ntegration process of NKB into BMA is a multipronged endeavor, encompassing engagements and support in a number ofdifferent strateg ic aspects, including (a) the support of the transitional Governance structures, (b) focused communicationsefforts to support the r ebranding and market positioning of the SB, and (c) significant investments in the modernization of thetechnological infrastructureand processes. The Resident Advisor is expected to support Management and Supervisory Board incoordinating and overseeing the vari ous activities to be undertaken, in order to ensure that outcomes align with the strategicpriorities defined by GoIRA.

The resident advisor will also work in close coordination with the advisory firm that will berecruited by GoIRA for the implementation of the sectoral and structural aspects of the strategy as concerning NKB. Once theadvisory firm is on board, the resident advisor w ill supervise, liaise with and complement the advisory firm’s services,through recommendations to MoF as required. The Reside nt Advisor is expected to be placed at NKB, a few weeks before the advisoryfirm is on the ground. The resident advisor will be resp onsible for undertaking preliminary reviews, preparing key documentation,and taking key first initial actions in the implementationof the GoIRA strategy.

Furthermore, the Resident Advisor isexpected to coordinate and consult closely and as needed its wo rk efforts with the Project Banking Expert Advisor assigned to theproject implementation team in MoF.

Deliverables:

Duration and Type of c ontract:

SelectionCriteria:

The banking advisor must have minimum then years’ relevant professional experience as an advisorin the domain of banking, strategic planning, policy level intervention, budgeting, credit management and risk management.

The Consultant must have successfully participated in the implementation of at least two similar consultancy projects oflike magnitudes (multi-year, policy level intervention) in (post) conflict and fragile states.

Proven experience in workingn similar capacity, bank management or financial sector supervision or similar in (post) conflict and fragile statesdesirable.

The Consultant must have minimum Masters level qualification and/or qualified certification of equal level.

Fluency in desirable.

  • Determining operational and business req uirements forthe transition and integration.
  • Developing a detailed implementation plan to modernize operations and busine ssactivities of NKB as per GoIRa’s reform strategy.
  • Establishing business continuity and contingency plans for thetransition period.
  • Establishing operational risk control measures and oversight arrangements to safeguard businessactivities during the transition period.
  • Establishing joint coordination committees between NKB and BMA business groups.< activiti>Undertaking performance reviews of branches and outlets to determine potential for consolidation and efficiencygains.
    1. Coordination and oversight of specialized consulting services
    1. Monthly progress reports submitted toMoF, CEO and World Bank on the Resident Advisor’s activities, a nd issues of relevance to NKB’s transformation andadoption of the reform strategy.
    2. Periodic reports, as requested b y the MoF, CEO and World Bank TTL on the operationaland financial performance of NKB.
    • The contract shallbe Time Based
    • The entire scope of services need to be as executed and the listed deliverables be delivered in Kabul,Afghanistan for a duration of 12 months from the day of commencement of the contract.
    • Contract benefits will includerelocation mobilization benefits, secured housing and transportation.
  • poken and written English is necessary.

     

    Selection Method:

    Selection willbe carried outCompetitive Selection of Individual Consultants in accordance with paragraph 7.38 of the Bank’s ProcurementRegulations for B orrowers for Goods, Works, Non-Consulting and Consulting Services dated July 1, 2016 (ProcurementRegulations)

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    Submission Guideline:

    Interested Internationalcandidates are requested to submit a cover letter, CV and related documents to the email address mentioned specifying the positionand vacancy number in the subject line

     

    Submission Email:

    application.hr@mof.gov.af

    cc- shahenshah.sherzai@g mail.com

     

     

     

     
     
     
     
     
     
     


http://projects.worldbank.org/procurement/noticeoverview?lang=en&&id=OP00055845


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