DEUXIÈME SESSION Les risques en agriculture - PDF

Description
DEUXIÈME SESSION Les risques en agriculture 2- Impact du changement de la réglementation bancaire sur les banques agricoles L accord Bâle II et les banques agricoles, expérience de la Banque Principale

Please download to get full document.

View again

of 24
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Information
Category:

Sales

Publish on:

Views: 6 | Pages: 24

Extension: PDF | Download: 0

Share
Transcript
DEUXIÈME SESSION Les risques en agriculture 2- Impact du changement de la réglementation bancaire sur les banques agricoles L accord Bâle II et les banques agricoles, expérience de la Banque Principale du Développement et du Crédit Agricole (PBDAC), Egypte M. Moh d Alsayed Ali NENARACA, Directeur Général du département de gestion du risque à la PBDAC, Egypte RISK MANAGEMENT Within the Framework of Basel II IN PRINCIPAL BANK for DEVELOPMENT and AGRICULTURAL CREDIT (PBDAC-EGYPT) Cairo, 2010 Contents: I. Introduction II. III. IV. Starting Point: Reform of the banking system in Egypt The financial sector and risk management Risks faced by the agricultural banks V. Banking risk management and Basel II accords VI. VII. VIII. IX. Risks faced by PBDAC and its branches PBDAC strategy for risk management The PBDAC Experience Next Steps X. Challenges 2 I. Introduction PBDAC History: Established on 25 July 1931 as the Agricultural Credit Bank. The Egyptian General Establishment of Cooperative Agricultural Credit in The Principal Bank for Development and Agricultural Credit holding all agricultural banks allover Egypt. These banks were later gradually merged into two banks; Delta and Upper Egypt banks. PBDAC and affiliates are supervised by the Central Bank of Egypt. PBDAC has 19 sectors in the governorates, 191 branches, 1,019 village banks, and 292 satellite units, at the country level. Under restructuring since November, I. Introduction - PBDAC s role Before Transition: Executing body of Agricultural Policy: - By granting subsidized crop loans - By being the sole distributer of agricultural inputs Provide financial services to agricultural community e.g. - Investment Loans - Deposits 5 I. Introduction - Restructuring PBDAC: Started in 2008 and ending in 2011 with European and local experience. Selling some assets to raise the capital. Utilizing current network of branches, 43% of the total branches at the level of the local banking market, as a base for the activity of retail banking products. Financing micro and medium-sized and small projects, focusing on banking and financing activities for the Liberation of capital, and to rationalize and reduce operating costs. Modifying the legal status of the Bank so as to enhance its capacity. Appointment of technically and administratively skilled managerial competencies. Reforming and modifying treasury and finance functions, and developing assets and liabilities management function to reduce risk and increase profitability. 6 II. Starting Point: Reform of the Banking System in Egypt CBE & ECB Cooperation Government Axes Banking Competition Legislative Reform Support the reform of banking system Combating corruption Strengthening the banks financial positions Consolidated Banks Law Reinforce CBE ability to: Controlling banks according to international standards Developing payment systems Battling bureaucracy Self-correction system Private sector entry thru merging and acquisition Liberating the banking services Define CBE two functions monetary policy surveillance over banks Risk management Electronic settlements Raising the efficiency of staff 7 III. The Financial Sector and Risk Management: Problems of the financial sector banks, insurance and stock market center particularly on risk management. It is essential for the financial sector to expect all kinds of risks it may be exposed to and find means for fending off or mitigating these risks. The financial sector deals foremost with all kinds of risks locally and world-wide. Therefore, the main, and perhaps the only, specialty required for the financial sector is how to deal with these risks as a whole with their diversified nature. 8 IV. Risks Facing Agricultural Banks : Agricultural Lending Risks Credit Risk Market Prices Government Agricultural Policies Concentrations Limited-purpose collateral Liquidity Risk Transaction Risk Operational Risk Reputation Risk 9 V. Basel II Accord and Risk Management: CBE strategy for Basel II application in Egyptian banks. Why Basel II? The most important new features of Basel II suggestions: Integrated view of risk Greater sensitivity of the market in risk assessment Abolition of distinction, and increasing flexibility Basel II and developing countries Are developing countries hurt from Basel II? Basel II agreement and the principles of effective control over banks Basel II application requirements. Advantages of Basel II application Problems of not applying Basel II. 10 VI. Risks, PBDAC Is Exposed to: PBDAC Faces the Following Banking Risks: Interest Rate Risk Goals and Objectives Risk Liquidity Risk Exchange Risk Credit Risk Capital risk Investment Risk Markets Risk Trading Risk Funds and Liabilities Risk Fraud Risk Operational Risk Branches Risk Reputation Risk 11 VII.PBDAC Strategy for Risk Management: 1. Originating independent risk management department. 2. Originating asset and liability management committee. 3. The economical operation of the bank. 4. The Finance gap. 5. Formulating investment policy. 6. Continuous adherence to the laws, legislations and control instructions. 7. Activating the plan for raising the efficiency of the banking operations department. 12 VIII. PBDAC Experience in Risk Management: 1. Goal of establishing the Risk Management Department Perceive and understand the risks that threaten the bank s existence Measure the probability of risks and effectiveness of the means and tools of mitigating them. Reevaluation of the risks. Clearly classify all types of risks in all the bank s transactions and activities Measure the size of the risks and determine their impact on the bank, using effective tools for that. Suggesting explicit, effective procedures and policies for monitoring the risks and taking preventive measures to restrain the spreading them Seeking to control the size of the risks in order to reduce negative effects on the bank. 13 VIII. PBDAC Experience in Risk Management 2. The general framework of the Risks Department BOD Risk Management Committee Risk Management Department 14 VIII. PBDAC Experience in Risk Management: 3. Risk Management Department Current Organization General Manager Operational Risk Market Risk Risk Control Credit Risk Corporate & Individuals Policy & portfolio 15 VIII. PBDAC Experience in Risk Management: 4. Operational Risk Diagnosing and outlining the current situation of operational risks the bank faces. The risk awareness program. Risk & Control Self-Assessment (RCSA). Key Risk Indicators. Describing and re-engineering the current processes and procedures to be risk-based processes. Training selected calibers from branches and village banks to act as operational risk specialists in their units and linked to the risk department in PBDAC. 16 VIII. PBDAC Experience in Risk Management: 4. Operational Risk Risk & Control Self-Assessment (RCSA) Self assessment by managers of business units. Risk owners are usually aware of risks, but they need a way to assess these risks. Operational Risk Unit is a facilitator and provide the tool of assessment (RCSA). Transparency for operational risks that have not yet resulted in a loss. Objective is identification of the high level risks associated with a specific unit or division. 17 VIII. PBDAC Experience in Risk Management: Risk & Control Self-Assessment (RCSA) Model 18 VIII. PBDAC Experience in Risk Management: 5. Credit Risk Credit Scorecards To come in control of the granting process of a major part of the credit portfolio. Segments of Loans To access the risk in our portfolio In a later stage, use for Basel II/III Agricultural Loans Investment Loans (Individual) Investment Loans (Companies) Corporate Finance Retail Loans 19 VIII. PBDAC Experience in Risk Management: 5. Credit Risk Credit Scorecards 20 VIII. PBDAC Experience in Risk Management: 6. Market Risk The Assets and Liabilities Department is achieving good proportion between assets and liabilities concerning maturity dates, currency centers, interest rates, identification and development of banking products the bank provides its customers, defining the ideal means of bank s investment, and management of real estate and transferable property acquired by the bank in settlement of debts. The main objective of Market Risk Unit is to define and monitor market risk appetite in PBDAC The purpose of market risk management is to evaluate and manage the impact of interest rate fluctuations on profitability using re-pricing gaps, and help in evaluating the risk exposure 21 IX. Next Steps: The Future Plan Aims to: Qualify the bank for applying Basel Accords in the field of risk measurement and management Develop methods for calculating credit risk, using the Standardized Approach, and implementing the Credit Scorecards in all branches and banking units Calculate the operational risk using Basic Indicator Approach preliminarily, and implement risk indicators and risk and control selfassessment Create a database of losses resulting from the operations and classified according to the decisions of the Basel Committee The provision of specialized programs internally and externally to all staff of the Directorate for the development of skills in the use of management tools and risk measurement. 22 X. Challenges : Change culture and risk awareness. Scarcity of data and necessity of risk databases. Methods and models of risk measurement and analysis which require advanced Information technology. Commitment of Basel II Accords application and whatever amendments 23 Muhammed El Sayed Ali General Manager, Risk Management Principal Bank for Development and Agricultural Credit Cairo
Related Search
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks