International Investment Bank

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Question: 1. What are three most pressing challenges that your institution is facing at this time?

a) Some of the challenges and problems we’ve heard so far include: (a) non or delayed servicing of loan accounts (b) operational efficiency (due to skeletal work force or work-at-home policy) (c) no or low technology capability to offer online services and to communicate effectively to clients (d) government support in terms of policy or funding assistance. Our main issue right now and probably the only crucial one is shareholder support with regards to paid-in capital. We understand than in order to deal with increasing pressure and necessity to provide continuous support to businesses in the interest of our member states and help economies of our regions overcome this difficult period, additional capital is needed. We have an approved additional capitalization programme 2020-2022 and currently urge our shareholders to fulfil their obligations under it ASAP. Otherwise, this is the third week we are in remote work mode and things are running smoothly. All staff is available for interaction with clients via all possible communications channels, our risk and compliance system is fully in line with MDBs best practices and constant monitoring of the portfolio takes place, including stress testing. Key governing bodies, committees have regular meetings online to ensure continuity of operations in all key areas.

Question: 2. What solutions, if any, have you developed/instituted to mitigate the above pressing challenges? If unable to solve them, what needs do you have for us or other members to help you with to remedy the situation?

a) The whole business plan and strategy of the Bank, alongside its risk management system, allow us to stand up to current challenges. Our funding is well diversified, so is the loan and documentary portfolio. Treasury portfolio due to the existing “treasury rule” consists of high rated instruments for more than 70%, so that gives us a lot of comfort despite global turmoil. Continuous monitoring of the situation will continue to be executed on a daily basis, as well as stress testing of our clients and loans. Last Friday S&P Global affirmed the Bank’s long-term credit rating at A- with a stable outlook, which is a good proof that IIB is significant and stable in the MDB community and our good level of CAR, management’s prudent approach to risk handling and flexibility in decision-making have been the right way to go about things until now.

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