Belarus—Bank for Reconversion and Development–Institution Building Plan

Client: European Bank for Reconstruction and Development

Duration: 2009-2011

Region: Eastern Europe and Central Asia

Country: Belarus

Solutions: Economic Growth

By March 2009, the Reconversion and Development Bank (RDB) had become the 18th largest bank in Belarus in terms of total assets. With a focus on retail lending, the bank was one of the most profitable in the country and wanted to grow its micro and small business portfolio to become a more universal bank. DAI led a consortium that provided technical assistance in parallel to an equity investment by the European Bank for Reconstruction and Development in RDB of $3.36 million in 2008, followed by a further increase in 2010. EBRD’s support to RDB emphasized the need to increase access to financial services in the country from a privately owned financial institution and particularly for micro, small, and medium enterprises through improving vital business processes at the bank.

Sample Activities

  • Assess organizational structure and needs to compile a proposal for the creation of a marketing department.
  • Develop new branding for the bank.
  • Assess the role and responsibilities of the security department in the retail lending process and provide recommendations.
  • Assess retail lending process and train lending staff.
  • Develop a credit scoring model for retail lending.
  • Develop mortgage lending product.
  • Assess bad debt collection function.

Select Results

  • Established a dedicated marketing department with a qualified manager, internal policies, and procedures.
  • Streamlined retail lending by rationalizing the role and responsibilities of a security department in the retail lending process, documented formal policies and procedures, improved automation, and introduced a credit scoring model.
  • Established a dedicated risk management department with a qualified manager appointed who reports directly to the CEO. The department is appropriately staffed, has policies and procedures in accordance with international standards, and is responsible for loan portfolio analysis and approval of loan loss provisions.
  • Created an independent anti-money laundering function.
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