Russia—NBD Institutional Strengthening

DAI was hired to assist Russia’s NBD, a bank focused on the micro, small, and medium enterprise sector, in its efforts to ensure that the appropriate institutional structures were put in place to enable the bank to grow and achieve its business objectives to expand into new regions and to attract a strategic investor.

Sample Activities

• Develop a comprehensive five-year strategy, a detailed business plan, and internal regulations/procedures for regular monitoring and review of business plan implementation.
• Revise credit manual and loan procedures, including loan portfolio monitoring and work-out procedures; reporting formats on loan portfolio structure and performance; and the structure of the credit department, including loan approval limits.
• Establish an independent and capable risk management department; internal risk management policy, a methodology for risks analysis/control and procedures for the risk management department; and reporting formats for periodic management reporting.
• Produce a marketing strategy and provide sales training to front office staff.

Select Results

• Collaborated with each member of the consultant team to ensure new approaches, structures, and concepts developed are addressed in the strategy document.
• Finetuned current credit manuals, streamlined credit operations through review and reallocation of credit limits, implemented a judgmental scorecard for a new microloan product, and reduced paperwork submitted with each loan to the Senior Credit Committee.
• Drafted new problem loan workout procedures and integrated independent loan reviewers to the credit approval process and independent members to the Senior Credit Committee.
• Developed reporting formats for business line and senior managers as well as the future risk managers.
• Held workshops for the Management Board about the benefits of having an effective risk management department.
• Developed proposed structure and staffing for the incorporation of the department into the five-year strategy.
• Created an independent loan review function, integrated independent members to the Senior Credit Committee, created a judgmental scorecard and reporting formats.
• Made recommendations for the need to re-brand from a bank that works with MSME borrowers to one that works with small firm clients, so as to help promote non-loan products on offer to these businesses.