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Resident Banking Advisor Pb

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This tender with title Resident Banking Advisor Pb 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 Advisor Pb
Request for Expression of Interest
OP00055846
N/A
21 Nov 2018
27 Nov 2018
English
Ministry of Finance
World Bank
Banking services

Terms of Reference

for

International Resident banking AdvisorPashta ni Bank (PB)

 

 

 

 

Position

Resident Ban king ?Advisor ( International )

Selecting Organisation Na me

Pashtani Bank (PB)

Duty Station

Kabul Afghanistan Pash tani Bank MainOffice

Website

http://pashtanibank.af

Gen der

Male/Female

Nationality

International

Employment Type:

International

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FullTime

 

10years

 

Education

Education: Master

 

ContractDuration

1 year with possibility of extension

 

 

Background of theAssignment

The Government of the Islamic Republic of Afghanistan (GoIRA) has embarked on the execution of anambitious strategy to refor m and modernize the State Owned Banking sector (SB) of Afghanistan, with the aim to establish the StateOwned Banks as financial andeconomic sustainability institutions which will provide a meaningful contribution towardsGoIRA’s aim of increasing financialinclusion and access to finance for all Afghan economic and social sectors, therebycontributing to GoIRA’s objective of fost ering economic growth and job creation. Implementation of GoIRA’s reform andmodernization strategy will be supported by the W orld Bank funded ‘Modernizing Afghan State Owned Banks’project.

The strategy seeks to modernize and reform SB i n three fundamental areas: (a) Corporate Governance, (b)institutional development and businesses strategy, and (c) information tech nology systems.

Essential elements of thestrategy will be (a) the consolidation of the sector and number of institution, (b ) the definition and implementation of asustainable business strategy, which combines GoIRA financial sustainability and outreach, and (c) the review and adjustment of thesize of institutions in accordance to their respective mandate and business strategy.

State Owned BankingSector

The State-Owned Banking sector of Afghanistan currently comprises three bamkng instit utions, all of which aredutifully established under Law and regualted by the Central Bank of Afghanistan: Bank-E-Millie Afghan (BMA ) and Pashtany Bank(PB) have been historicall state-owned and were established originally in 1933 and 1954, respectively. New KabulBank (NKB) wasonly established 2011 as part of the resolution efforts and nationalization of the collapsed privately-held Kabul Ba nk.

Atthe end of 2016 the three institution combine for total assets of approximately US$1,063 million, equivalent to a sha re of about27% of total banking assets in the country. However, despite their relvance in terms of assets relative to the rest of t he bankingsector, SBs play only a very limited role in terms of intermediation and provision of financing to the private sector. Infact,two of the three institutions – PB and NKB - at present operate under special regulatory regimes as ‘narrow&rsquo ;banks limited to savings business, as well as banking and payment services, as a result of their capital deficiency until end of 2016. Only BMA has a minor active loan book that represents about 7 percent of total assets and is composed of exposures toapproximately 150 mainly corporate clients. As a result, all SB are holding elevated liquidity levels, equal to between 70% (BMA) annd 84% (N approximaB) of total assets at the end of 2016. In consequence, the principle income drivers of the three institutionsare investmen from placing liquid funds and net service and commission income.

The modest assets size and intermediationcontribution beli es the significance of SB in terms of access to finance and financial inclusion. With a total of 131 branches thethree SBs account for almost ¼ of all bank branches in the country. Fruthermore, SB as a whole are the only institutionswith coverage in all p rovinces. Furthermore, at the end of 2016 the SBs combined for roughly 2,300 employees, equivalent to about¼ of all sector s taff.

Over the last decade the operational and financial performance of the SBs has beenchallenged as much by the adverse o perating environment as by institutional constraints. This included the repeated use of theinstitutions for achieving political, so cial and constituency objectives in disregard of financial considerations and theireconomic viability. Poor performance especially with regards to the origination, administration and recovery risks but also morebroadly the overall operations and administration o f the institutions has undermined their viability, resulting over time insubstantial fiscal burdens through successive rounds of si gnificant loan losses, equity write-downs, andrecapitalizations.

Moreover, poor exercise of ownership interests and weak co rporate governance structures have impededdevelopment of a coherent business strategy and market approach for the institution, whic h would foster the economic anddevelopmental goals of GoIRA while safeguarding the financial sustainability of the institutions.

Going forward GoIRAstrategy for SB envisages PB to further consolidate its operations and increase efficiency to achieve fina ncial sustainability,and maintain its current operating modus as a ‘narrow bank’ focused on offering access to savings and banking andpayment services for its urban client base. Medium term GoIRA will explore the potential to crowd-in private capitalthrough aprocess of capital increase or partial/total divestment, or the consolidation of PB activities and brand within a single StateOwned bank.

Description:

To support its ambitious reform and modernization efforts fortheSB sector and the envisaged consolidation and stabilization of PB, with a medium term view to attract private capital or consolidate PB within a unified SB, GoIRA is seeking to contract qualified consultant services as long term resident advisors toPB.

The consultant is expected to provide support to PB management and Board of Supervisors, and other relevant stakeholderss in form PB.

lating and implementing the consolidation and stabilization plan for PB, the business plan and as well asproposals for cro of private capital or consolidating PB in a single SB, based on the macro strategic visions outlined by GoIRA forthe sector. This w ill include – but not be limited – to the detailed definition of a transition road-map,identification of implementationsteps and resources requirements, including a HR transition plan, establishment of relevantoperational and risk control measures a nd design of adequate internal and external communication strategy.

 

The advisor isexpected to help the RMD in designing andimplementation of plan and strategy, implementation of risk assessment modules based onbest international practices, and assist th e RMD in integration of risk and risk management in the bank’s strategic plan.The RMD also needs assistance in designing and implementation of interest rate risk, operations and liquidity risk policies. TheRMD must also be assisted in implementation of Cre dit, operation and market risk approaches.

Moreover InternationalAdvisor will help and advising the credit department in bo th funded Facilities and non-funded facilities ,international standards, rules and regulations related to credit products, requiredactions for avoiding delinquency and decreasing the PAR rate,financial analyses for have a real picture of the borrower, in order to have effective and profitable loanportfolio.

Scope of Services:

The Resident Advisor wil l provide on-going support and inputto the transformation process of Pashtany Bank and to the Bank’s management and Superviso ry Board, ownership representativesand other relevant stakeholders. The Scope of Services is expected to cover support in all relev ant strategic, policy andtechnical aspects of the process, ranging from supporting high level definitions of strategy to hands-on s upport in theimplementation process.

The International advisor is expected to work closely with the CEO and all heads of de partments indeveloping relevant strategy proposals, products and services, streamlining the working processes and procedures, polic ies review,risk management techniques based on best international practices, and all other department issues as the might arise.

Particular focus will be required on supporting the improvement of Pashtany Bank Risk & Compliance Management capacityand Internal Audit function, as well as on fostering the bank’s credit, operational, financial management capacity, according to andspecific Scope of Works to be defined as required.

Broadly the Scope of Services is divided in activities in threeareas,outline below in more details:

  1. Strategic and policy advisory

TheResident Adv isor will provide support and technical advice in operationalizing and implementing the consolidation process of PBand the developm ent and implementation of a sustainable business plan as per the defined strategy of GoIRA. Specifically, theResident Advisor will support PB management and Supervisory Board in:

Given the tenuousfinancial position of PBshoring-up and stabilizing its business performance and increasing efficiency is condition sine qua nonfor the successful developm ent and implementation of a longer-term business strategy. The Resident Advisor will support PBManagement and Supervisory Board to that effect by supporting a two-step approach of (a) stabilization and consolidation, and (b)development and implementation of a me dium-term business approach which maximizes the institution’s financial results.Specifically, the Resident Advisor will suppo rt Management and the Supervisory Board in:

The institutional consolidation and stren gthening process for PB is a multipronged endeavor,encompassing engagements and support in a number of different strategic aspects,including (a) the strengthening of Governancestructures, (b) focused communications efforts to support the rebranding and market p ositioning of the SB, and (c) significantinvestments in the modernization of the technological infrastructure and processes. The Re sident Advisor is expected to support PBManagement and Supervisory Board in coordinating and overseeing the various activities to b e undertaken, in order to ensure thatoutcomes align with the strategic priorities for PB as defined by GoIRA.

Furthermore, the Resident Advisor is expected tocoordinate and consult closely and as needed its work efforts with the Project Banking Expert Ad visor assigned to the projectimplementation team in MoF.

Deliverables:

Duration and Type of contract:

Selection Criteria:

TheConsultant must have min imum fifteen years’ relevant professional experience in the domain of Banking, Finance, Accounting,Audit, Strategic planning and budgeting, costing, asset management and Risk management.

The Consultant must havesuccessfully participated in the impl ementation of at least two similar consultancy projects of like magnitudes (multi-year,policy level intervention) in (post) conflic t and fragile states.

Proven experience in working in similar capacity, bankmanagement or financial sector supervision or s imilar in (post) conflict and fragile states desirable.

Experience in themanagement of ‘narrow banking’ approac hes or ‘savings banks’ would be desired. Direct experience in thedevelopment and implementation of ADC, agent banking n etworks and virtual wallet systems is required.

The Consultant musthave minimum Masters level qualification and/or qualifie d certification of equal level.

Fluency in spoken and writtenEnglish

The selection shall be based on World Bank pro curement guidelines for Services.

SelectionMethod:

Selection will be carried out through Limited Competitive Select ion of Individual Consultants in accordance withparagraph 7.38 of the Bank’s Procurement Regulations for Borrowers for Goods,Works, Non-Consulting and Consulting Servicesdated July 1, 2016 (Procurement Regulations)

 

Sub missionGuideline:

Interested International candidates are requested to submit a cover letter, CV and related docum entsto the email address mentioned specifying the position and vacancy number in the subject line

 

Submission Email:

application.hr@mof.gov.af

 

cc- shahenshah.sherzai@gmail.com

 

 
 
 
 
 
 
 
  • An in-depth assessment of PB’s marketpotential, customer outre ach and competitive advantages.
  • Assessing current branch structure and network, establishingperformance and efficiency cr iteria
  • Developing an Alternative Delivery Channel approach to enhance outreach and reducetransaction costs.
  • Eva luating, streamlining and adjusting HR and operational resources.
  • Assessing resourcesneeds and HR requirements; includingdetermination of HR capacities, and training and replacementrequirements.
  • Designing and implementing training efforts toenhance operational staff capabilities and strengthen riskmanagement and oversight.
  • Assessing, reviewing and recommendin g the development and implementation of a detailedbusiness plan to expand on the ‘narrow banking’ business to be undert aken.
  • Advising on the definition andimplementation of a product and services strategy aimed at attending defined market s egments.
  • Undertaking the annualassessment of business strategy and performance, and analyze and recommend adjustments in order to maximize financialsustainability and development impact of the institution.
  • Assessing, reviewing and recommendin g the development andimplementation of policy statements and manuals; including strengthening of operational risk management.
  • Establishingarrangements for regular structured assessments for the operational and resources strategy in line with the busine ss strategy ofthe institution.
  • Documenting progress and challenges in the transformation and modernization process and im plementingappropriate M&E approaches to evaluate the institutions financial, operational and outreach performance.
  • Id entifyingnon-strategic assets and determining an implementation plan for their divestment, including the identification of qualifie d equityinvestors.
  • Identifying PB’s long term capital need and optimal equity structure, including identifying opportunities and qualified investors for capital raises or partial or full divestment of GoIRA’s equity stake in theinstitution; including developing the corresponding divestment strategy.
  • Preparing and implementing any capital raise or ddivestment s institution;rategy for GoIRA equity stake in PB.
  • Establishing outreach and communication with all relevantstakeholders
    1. Operational and business execution support
    • Reviewing the currentproduct portfolio mix, market position and institut ional capacity with regards to attending to the strategic mandate outlined forthe institution by GoIRA
    • Determining marketand segment strategy, including exposure and risklimits.
    • Identifying institutional strengthening needs, designing strate gy and implementation plan toaddress.
    • Reviewing organization structures to effectively cater to the cores strategic marke t segment, includingcorresponding risk management, control and supervision structures.
    • Establishing regular branch perfor mance review andmarket assessments.
    • Identifying alternative delivery channel options and risk assessment technologies to enhanceefficiency and outreach; including virtual wallet, agent banking and other delivery mechanism approaches.
    • Determin ingoperational and business requirements for the consolidation and stabilization period.
    • Developing a detailed implementation plan to address HR and branch adjustments to enhance efficiency.
    • Establishing and implement business continuity andcontingency plans.
    • Establishing operational risk control measures and oversight arrangements.
    • Undertaking perforr cance reviews of branches and outlets to determine potential for consolidation and efficiencygains.
    1. < >Coordination and oversight of specialized consultingservices
    • Pol icies, procedures andmanuals for the new product mix and internal operations
    • Review of quarterly budget and financial pla ns includinganalysis of actual historical performance against planned and defining projected targets.
    • Branch network asse ssment andoutreach strategy and the action plan for the branch network operations.
    • Monthly progress reports submitted to MoF andWorld Bank on the resident advisor’s activities, and issues of relevance to BMA operations and adoption of the reformstrategy.
    • As requested by the World Bank TTL provide periodic reports on the operational and financial performance of PBand improvement recommendations.
    • As per request by the World Bank TTL provide periodic reports on particular issues of riss a management.
    • The contract shallbe T me/ Based
    • The entire scope of services need to be as executed and the listed deliverables be delivered in Kabul, fora dur ation of 12 months from the day of commencement of the contract.
    • Contract benefits will include relocationmobilization be nefits, secured housing and transportation.


http://projects.worldbank.org/procurement/noticeoverview?lang=en&&id=OP00055846


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