IFC 2004 Corporate Slideshow

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Workshop on Corporate Governance standards in
Commonwealth member countries in Asia Gilles
Galludec June 17-18 2006, Maldives
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Services Offered by IFC

• Financial products loans, equity, quasi-equity,
  guarantees, risk management products
• Resource mobilization
• Technical assistance and advisory services

• Small and medium enterprises
• Environmental/social performance
• Investment climate
• Financial sector
• Infrastructure
• Corporate governance

• Assistance to clients IFC helps companies and
  financial institutions improve their governance
• A global role guidance to regulators, stock
  markets, members of boards collaboration with
  other multilaterals on conferences and
  methodology

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IFCs TA program for SME Pvt. Sector Development
SEDF
(SouthAsia Enterprise Development Facility)
In Bangladesh, Bhutan, Nepal, North East India,
Sri Lanka, Maldives
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SEDF

• launched in October 2002.
• Total Funding USD 40m Bangladesh, 10m Sri Lanka
  Maldives
• Donors EC, DFID, Norway, CIDA, Netherlands,
  ADB.
• 3 main business components (i) Access to
  Finance (ii) BEE Investment Climate (iii) VAF
  Sub-sector development.
• 60 staff in the field
• Synergy with Investments.

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Business Operations

• VAF Sub-sector development Tourism, Garments,
  Light Engineering, Agribusiness, IT, Gender cross
  cutting.
• Combines direct assistance, BDS, linkages and
  cluster approach to improve performance of
  selected sectors

Corporate Governance

• Access to Finance TA mandates to 21 PFIs in
  South Asia

• BEE Investment Climate (Surveys and programs,
  Doing Business)

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CG Interventions and Strategy
Focus on Financial Institutions Bad Corporate
Governance risk that earnings and capital are
too much exposed due to poor organization and
management, bad decisions, execution and
supervision

• Core activities
• Work with IFC Investees (Banks and Financial
  Institutions)
• Prepare IFC Investments
• Strategic role of IFC in Boards, preparing
  strategy for expansion, setting corporate
  objectives to generate economic returns,
  improving internal processes and transparency
• Organize / facilitate training programs in the
  financial sector
• Workshops to board members and managers on
  Corporate Governance best practices
• Using CG as a means to assess risks in FIs

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TA Interventions

• January 2003 Workshops in Dhaka for the
  financial sector
• Four separate workshops at Eastern Bank, Islami
  Bank, Dutch Banlga Bank, Dhaka Bank
• Increase awareness of CG issues in the fin.
  sector, share experiences from other countries
  (FIs, regulators, development agencies etc).
• FIU with Bangladesh Bank (AML guidelines). Banks,
  NBFIs, MFIs, insurance companies, moneychangers,
  money transferring agencies
• Acceptable level of CG to become a PFI
• 2005-2006 SME Banking CHECK includes Governance
  and Strategy

• Actions on Corporate Structure through IFC
  Investments
• Shareholders
• Supervisory board
• Management board
• Audit committee
• External accountants
• Internal accountants
• Internal (Credit Committee, ALCO) / reporting
• External supervisors

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Way Forward

• Bangladesh
• Awareness presentation to SEDF staff
• Presentation to various commercial banks in
  Dhaka
• Discussion with the Central Bank staff
• Separate meetings with 5 banks
• Sri Lanka
• Three PFIs initiate talks with IFC Investee,
  potential Investees
• Board Self-Assessment
• Corporate Governance Progression Matrix
• Review of internal documents (Code)
• Due diligence missions
• Preparation of a focused program TA / Training
  for September 2006

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