Lending Diagnostic of Ashur International Bank

2013-02-28 - 2013-02-28

Following a workshop on key challenges of SME lending operations in Iraq and internationally recognized best practice SME lending techniques which had been held by LFS in Erbil, Iraq in November 2012 AIB was selected to receive technical assistance to evaluate their institutional performance and SME lending operations. LFS was assigned to carry out this evaluation in two of AIB’s branches, namely Erbil and Sulaymanyah. After a brief off site preparatory phase two SME experts travelled to Iraq to conduct a SWOT analysis of AIB’s SME operations based on a review of written documentation and on-site interviews with AIB staff and clients. At the closure of the field mission key findings were presented to the management of AIB in a debriefing. Comprehensive findings, conclusions and recommendations were thereafter documented in a written diagnostic report that was submitted to AIB and Sanad. Feedback of AIB and Sanad was discussed in a final workshop alongside with potential institution building measures to be delivered to AIB by LFS in the near future.
Off site: Review of key performance indicators, procedures and reports of the SME lending unit at AIB On site: Presentation of project goals and outline of key aspects of internationally recognized best practice SME lending operations to AIB SWOT analysis of the regulatory and legal environment, AIB’s institutional structure, performance and SME finance practice based on written documentation and interviews with head office representatives, branch managers, senior credit staff, loan officers, accounting staff and lawyers to analyse the following aspects: Organisational structure of the overall credit department and branches with an SME lending unit Business plan for the next 5 years SME Lending policies, procedures and product conditions, SME loans analysis and approval process Collateral requirements and procedures; Loan Recovery measures, policies and procedures Portfolio (productivity and quality) and staff performance reporting formats and procedures Supervisory tools and procedures HR policies and procedures; Staff recruitment and development Discussion of a work plan for the potential implementation of best practice SME lending operations at AIB Off site: Comprehensive written report comprising findings and conclusions of the institutional and operational diagnostic and recommendations for potential implementation of best practice SME lending operations at AIB Final Workshop LFS’ conclusions of the diagnostic Feedback from AIB and SANAD Discussion on potential further collaboration between AIB, SANAD and LFS