Admiralty International is pleased to offer three essential banking services which we can implement quickly and efficiently in your organisation , on a “Turn-Key” basis. This booklet outlines the establishment of:
We have selected these three areas because they represent core banking services, critical to the success and profitability of all banks.
Each section of the booklet covers the benefits you can expect to derive and details of the system to be delivered. We also present a proposed workplan and timeline for implementing each.
Admiralty International and its Directors have many years of experience in the fields of banking and finance. We have implemented and managed key operations in a number of major financial institutions (and other organisations) around the world.
We recognize that every institution is unique. Our “Turn-Key” solutions will be designed to meet your needs. We will analyse your requirements, provide expert consultants, project manage each service through to implementation, and ensure local staff are fully trained to run the operation competently.
If you require any further information on Admiralty International or how we can help you establish or upgrade your bank in the vital areas of credit, treasury and trade finance, please contact us. Additionally, we are able to provide advice in other areas of banking and finance. We would be pleased to discuss your requirements with you at any time.
ESTABLISHMENT OF A CREDIT SYSTEM
Project Aim
Admiralty International would establish a comprehensive credit system, including implementation of policy, practice, procedures and training systems for credit approval, credit analysis, credit review, loan administration and problem loan workout.
Benefits
A sound system of credit and lending is the foundation of any bank. Credit policy would anticipate and manage risks effectively. A system of credit approval limits would delegate lending and loan follow-up responsibilities to the appropriate levels within the Bank, thereby freeing senior management time and allowing for the development of lower level credit expertise. Modern credit analysis would allow the Bank to evaluate corporate, sector and industry risks in order to identify good lending opportunities and to price business appropriately. A complete system of credit review would identify non-performing loans (and lending officers) early and provide remedial action. A loan work-out and recovery system would maximize return on defaulting loans and minimize losses.
Deliverables
Admiralty International would deliver a complete credit system, to include:
- Credit Policy. We would assist the Board of Directors to develop a comprehensive credit policy to include lending philosophy, practices, procedures, lending criterion, liquidity, pricing, approval, review, recovery, training, etc.
- Credit Approval System. We would assist Senior Management to establish a practical loan approval system, credit limits for clients and correspondent institutions, conglomerate groupings, industries, sectors, countries, branches, loan officers and groups of loan officers.
- Credit Analysis. We would assist designated Senior Credit Officers to develop and implement standard policies, procedures and practices for credit evaluation and credit analysis. Once policies and procedures are agreed, we would train key individuals in credit analysis and the use of computer aided spread sheet evaluations.
- Credit Review. We would implement a system of loan review and audit to examine existing loans, branches, lending centres, and loan officers to ensure compliance to lending policy and to evaluate loan quality and levels of security. This system would identify non-performing loans at an early stage so that remedial action can be taken, if possible.
- Loan Work-out. We would create a Loan Work-out Department to deal with non-performing loans. This would include developing policies for recommending loan reserves, instituting repossession and salvage actions, etc.
- Loan Administration. We would install a workable "back-room" to ensure custody of documents, timely and accurate disbursement of loans and receipt of payments of interest and principal, booking of earnings, posting of reserves, etc.
- Training. Training of key individuals would be implemented at the Board level, Senior Management level, and at appropriate levels in the credit approval, review, administration and work-out departments. Credit policy and procedures, credit analysis, credit review, loan work-out and loan administration management would be taught. Additionally, appropriate training material would be developed in the local language. Local trainers would be identified, trained and installed in an on-going training system.
Resources
Admiralty International would assign experienced specialists to the Bank as necessary to complete the assignment. These would include:
- Senior Credit Officer
- Credit Review Manager
- Problem Loan Specialist
- Loan Administrator
- Credit Analyst Trainer(s)
Work Plan and Timeline
A suggested Work Plan and Timeline are presented on the following page
ESTABLISHMENT OF A TREASURY
Project Aim
Admiralty International would establish an operational Treasury function, to meet both internal Bank needs and to service the requirements of major clients.
Functional Description
The Treasury of a bank is tasked with ensuring that cash and liquid assets are properly managed to ensure minimal risk and maximum return for the bank. In addition, it is tasked with providing a number of services to clients, including foreign exchange (FX) dealing, buying and selling of money market instruments, fixed interest securities and trading of specialised derivative products (such as options and swaps). This trading function of Treasury (the Front Office) is supported by an operations department (the Back Office) which provides administrative processing and reporting services to trading staff and management.
Benefits
The establishment of a Treasury function would:
- Protect the Bank's position by properly managing it's cash and liquid assets.
- Increase profitability via active informed trading on the Bank's account.
- Improve client performance by providing effective solutions for client needs.
- Increase client base by offering additional services.
Deliverables
Admiralty International would deliver the following:
- A set of operational policies and procedures supported by the necessary reports and systems.
- An operational Trading Room incorporating the required trading information hardware together with the necessary telecommunications equipment.
- An operational Back Office providing processing and reporting support.
- An operational Front Office managing cash, trading on FX, Money Market and Fixed Interest Markets, and managing Treasury Risk.
- A full training programme that incorporates offsite training at operational banks plus onsite training for internal trainers, managers, staff and key clients.
Resources
Admiralty International would assign experienced specialists to the Bank as necessary to complete the assignment. These would include:
- Project Manager to liaise with Bank and Project team to supervise the project.
- Front Office specialist with top level trading skills.
- Back Office specialist with experience in all aspects of administrative support.
- Systems Integration specialist with experience of implementing and supporting the systems required in both Front and Back offices.
Work Plan and Timeline
A suggested Work Plan and Timeline are presented on the following page
ESTABLISHMENT OF A TRADE FINANCE UNIT
Project Aim
Admiralty International would establish an International Trade Finance Unit, including a marketing plan and necessary Back Office support.
Functional Description
The essential elements of International Trade Finances are:
- Documentary Processing
- Import/Export Finance
- Foreign Exchange
The International Trade Finance Unit would:
- Assess the international services currently offered by the Bank, recommend and implement appropriate extensions to service.
- Assess the international services currently needed by each client or prospect engaged in international trade.
- Identify opportunities to provide international trade services both to Bank clients and to others currently participating in international trade.
- Identify additional or alternative banking services for the client or potential client ("cross-selling")
- Develop and present a proposal to international trade clients and prospective clients offering the Bank's services and demonstrating the benefits.
- Establish ongoing liaison with each client/prospective client.
Benefits
- Profitable business (much of it with minimal or no risk).
- Increased client loyalty.
- The opportunity to solicit additional, non-international business from existing international trade services clients.
- The opportunity to solicit new international trade services clients.
Deliverables
Admiralty International would provide:
- Written policies and procedures for Trade Finance.
- A detailed marketing plan.
- Assistance in recruiting and selecting qualified international personnel, including marketing officers and documentary processing staff.
- Training to market international trade services successfully on an ongoing basis.
- Assistance with credit assessment of proposals.
In short, we would help create a viable ongoing international trade services marketing unit which would carry on successfully after our departure.
Resources
Admiralty International would assign experienced specialists to the Bank as necessary to complete the assignment. These would include:
- Trade Finance Marketing Specialist with extensive international experience.
- Operations Specialist to assist with the establishment of back office procedures, including documentary collection, letters of credit, etc.
- Senior Credit Officer to review existing credit policies, procedures and practices as they relate to letters of credit and foreign exchange, and to recommend appropriate changes (if necessary).
- Foreign Exchange Specialist (if necessary) to review the Bank's ability to offer FX services.
Work Plan and Timeline
A suggested Work Plan and Timeline are presented on the following page