Presentation on the Tajik banking sector


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Presentation on the Tajik banking sector

  1. 1. Tajik banking sector Time to open a bank account ! Presentation to the “Principals” Dushanbe, February 9 th 2006 Fernand Pillonel, EBRD
  2. 2. Principal data of the main Tajik banks, January 01 2006 (USD) 3’688’000 6’067’000 4’923’000 37’871’000 22’974’000 10’385’000 59’425’000 Deposits 3’670’000 0 4’808’000 41’408’000 17’285’000 13’995’000 35’950’000 Loan Portfolio 9’385’000 13’898’000 Head Bank 15.4 Bln 13’398’000 69’235’000 35’701’000 23’140’000 76’500’000 Total Assets 5’025’000 5’258’000 Head Bank 2.3 Bln 5’100’000 13’293’060 8’460’000 8’860’000 16’105’000 Capital 1 st Micro Finance Bank Tijorat Bank Eskata Bank Agro Invest Bank Tajik Sodirot Bank TSOB Taj Prom Bank Orien Bank
  3. 3. IFI’s in Tajik banks (USD) Micro 0.6 Mln Equity 1.2 Mln KfW TFP 2 Mln ADB 6 Mln - 3.4 Mln 6 Mln 8 Mln 5 Mln - TOTAL Equity 3.2 Mln - - - - - - AK Equity 0.9 Mln - Micro 1 Mln - - - - IFC - - Micro 1 Mln TFP 0.5 Mln Equity 0.9 Mln 2.4 Mln Micro 2 Mln TFP 4 Mln 6 Mln Micro 2 Mln TFP 4 Mln 6 Mln Micro 2 Mln TFP 2 Mln 5 Mln - EBRD 1st Micro Finance Bank Tijorat Bank Eskata Bank Agro Invest Bank Tajik SodirotBank TSOB Taj Prom Bank Orien Bank
  4. 4. Recent achievements : Less banks, more solid, better <ul><li>CONSOLIDATION : Minimum capital raised to USD 5 Mln (IMF – EBRD) </li></ul><ul><li>CONSOLIDATION : Closures of banks or categorization in NBFIs, Clean-up AgroIB (IMF) </li></ul><ul><li>DEPOSIT INSURANCE : New law (EBRD) </li></ul><ul><li>SUPERVISION : Improvement (USAID) </li></ul><ul><li>CORPORATE GOVERNANCE : Consultant (EBRD) </li></ul><ul><li>Anti Money Laundering : New Law (EBRD) </li></ul>
  5. 5. Recent achievements : new players, foreign capital <ul><li>NEW FOREIGN Banks : 1 st MFB (AK-IFC-KfW), BTA (Kazakh), Habib Bk (AK), </li></ul><ul><li>EQUITY Investment : Eskhata Bk (EBRD, Shore Bk) </li></ul><ul><li>SEGMENTATION : Licensing of MFIs (ADB) IMON (MC), HUMO (CARE), OXUS (ACTED), MDTM (ACDI/VOCA), FINCA </li></ul><ul><li>LIQUIDITY : Remittances (600 Mln), Deposits </li></ul>
  6. 6. OJSC “Orien bank” <ul><li>30 branches > everywhere </li></ul><ul><li>Biggest Tajik Bank </li></ul><ul><li>OJSC Orien bank (TajPromStroiBank during the SU, one of the oldest banks 1925) </li></ul><ul><li>Universal corporate bank, TADAZ, SOEs, mining, fuel, energy, cotton, international trade, correspondent network, cooperation with Kazakh banks, foreign educated young staff </li></ul><ul><li>Main owners of the Orien bank are related to the family of the President of the RT, the CEO Mr Hassan Saidullaev </li></ul>
  7. 7. OJSC “AgroInvestBank” <ul><li>57 branches > biggest network, very present in rural areas </li></ul><ul><li>2 nd Biggest Tajik Bank </li></ul><ul><li>OJSC AgroInvestBank (AgroPromBank during the SU) </li></ul><ul><li>Traditional provider of financing for the agriculture (cotton mainly, channelling of “futures”) AgroInvestBank becomes in 2003 a universal bank and supplies a wide spectrum of bank services (1 st provider of cards and ATMs). </li></ul><ul><li>In 2003 the accumulated cotton debt (USD 260 mln) was taken from the Agroinvestbank and placed in Cotton Invest under control of the IMF. </li></ul><ul><li>Participates in EBRD’s Microfinance and Trade Finance programmes since June 2005. </li></ul><ul><li>The CEO of Agroinvestbank is Mr. Saidmurodov and 1st Deputy Mr Vafaev. </li></ul>
  8. 8. OJSC “TajikSodirotBank” TSOB <ul><li>9 branches, 4 th Tajik bank </li></ul><ul><li>OJSC TojikSodirotBonk TSOB (Former Tajik branch of the VneshEconombank – Bank of Foreign trade with good international trade finance experience) </li></ul><ul><li>Universal commercial bank present both in urban areas and in the cotton industry, Khorog, Kulyab. </li></ul><ul><li>The shareholders of Tojiksodirotbank are around 10 businessmen active in modern sector of the economy (telecommunication, consumer goods, cotton, construction materials, resulting in rather modern commercial services) </li></ul><ul><li>After equity investment of EBRD and IFC in 1999 and exit in 2003, has improved its governance and became the top performer in EBRD’s programmes in Trade and Micro since 2004. Has also attracted ADB private sector funding and serves several International organizations. </li></ul><ul><li>The CEO of Tojiksodirotbank is Mr. Lalbekov and Deputy Mrs Loginova. </li></ul>
  9. 9. CJSC “TajPromBank” <ul><li>12 branches in Dushanbe, regions of republic subordination and in the Sogd region </li></ul><ul><li>TajPromBank was founded in 1995, well-managed universal bank still lacking of international exposure </li></ul><ul><li>Participates in EBRD’s Micro and Trade Finance programmes </li></ul><ul><li>The main shareholders of TajPromBank are mainly individuals with one principal shareholder, also CEO Mr. Ziyaev, resulting in prudent banking </li></ul>
  10. 10. OJSC “Bank Eskhata” <ul><li>Based in Khujand, with very strong presence in the Sogd, Pendjikent and developing in Dushanbe and southern towns with the EBRD microfinance programme since 2004. </li></ul><ul><li>Eskhata is the ancient name of Khujand-Leninabad, named by Alexander the Great) and the bank was established in 1993. Characterised by young and dynamic Northerners. </li></ul><ul><li>EBRD and Shore Bank (Chicago, USA) invested equity in Eskhata in December 2005 (19 % and 6 %) in order to increase the capital to the new minimum capital requirements and now seat on the executive Board. </li></ul><ul><li>The main shareholders of Eskhata bank are the CEO Mr. Nasirov and his family. </li></ul>
  11. 11. 1 st Micro Finance Bank <ul><li>Fast growing network with strong presence in GBAO and Rasht valley. </li></ul><ul><li>New bank created in 2004, sponsored by the AgaKhan bodies with equity investments by IFC and KfW, also providing a Credit line </li></ul><ul><li>Mainly focused on Microfinance and deposits, offers European standard services and serves several international organizations </li></ul><ul><li>The CEO is Jim Eagan </li></ul>
  12. 12. Next steps of development of the Tajik banking sector <ul><li>Strengthening by attraction of additional capital and foreign investment (Kazakhstan, EBRD, IFC) </li></ul><ul><li>Entry of new foreign banks (Kazakhstan, Pakistan) </li></ul><ul><li>Product development: cards, on-line banking, services </li></ul><ul><li>Attraction of deposits to ensure intermediary role and inject additional funds in the economy > TRUST </li></ul><ul><ul><li>Creation of Deposit Insurance </li></ul></ul><ul><ul><li>Creation of Credit Bureau </li></ul></ul><ul><ul><li>Adoption of Anti Money Laundering law and regulations </li></ul></ul><ul><ul><li>Strengthening of the supervision function </li></ul></ul><ul><ul><li>Institutional building programmes </li></ul></ul><ul><ul><li>Creation of an Independent Banking Association </li></ul></ul>
  13. 13. CONCLUSION <ul><li>The Tajik banking sector has improved significantly since 3 years </li></ul><ul><li>A solid banking sector is a pre-condition for economic growth </li></ul><ul><li>Opening a bank account in a Tajik bank is now safe </li></ul><ul><li>The choice is broad </li></ul><ul><li>The international community must send this message of trust </li></ul><ul><li>Thanks for supporting the banking sector. </li></ul>