Tajik banking sector Time to open a bank account

1
Tajik banking sectorTime to open a bank account !

• Presentation to the Principals
• Dushanbe, February 9th 2006
• Fernand Pillonel, EBRD

2
Principal data of the main Tajik banks, January
01 2006 (USD)
3
IFIs in Tajik banks (USD)
4
Recent achievements Less banks, more solid,
better

• CONSOLIDATION Minimum capital raised to USD 5
  Mln (IMF EBRD)
• CONSOLIDATION Closures of banks or
  categorization in NBFIs, Clean-up AgroIB (IMF)
• DEPOSIT INSURANCE New law (EBRD)
• SUPERVISION Improvement (USAID)
• CORPORATE GOVERNANCE Consultant (EBRD)
• Anti Money Laundering New Law (EBRD)

5
Recent achievements new players, foreign capital

• NEW FOREIGN Banks 1st MFB (AK-IFC-KfW), BTA
  (Kazakh), Habib Bk (AK),
• EQUITY Investment Eskhata Bk (EBRD, Shore Bk)
• SEGMENTATION Licensing of MFIs (ADB) IMON (MC),
  HUMO (CARE), OXUS (ACTED), MDTM (ACDI/VOCA),
  FINCA
• LIQUIDITY Remittances (600 Mln), Deposits

6
OJSC Orien bank

• 30 branches gt everywhere
• Biggest Tajik Bank
• OJSC Orien bank (TajPromStroiBank during the SU,
  one of the oldest banks 1925)
• Universal corporate bank, TADAZ, SOEs, mining,
  fuel, energy, cotton, international trade,
  correspondent network, cooperation with Kazakh
  banks, foreign educated young staff
• Main owners of the Orien bank are related to the
  family of the President of the RT, the CEO Mr
  Hassan Saidullaev

7
OJSC AgroInvestBank

• 57 branches gt biggest network, very present in
  rural areas
• 2nd Biggest Tajik Bank
• OJSC AgroInvestBank (AgroPromBank during the SU)
• Traditional provider of financing for the
  agriculture (cotton mainly, channelling of
  futures) AgroInvestBank becomes in 2003 a
  universal bank and supplies a wide spectrum of
  bank services (1st provider of cards and ATMs).
• In 2003 the accumulated cotton debt (USD 260 mln)
  was taken from the Agroinvestbank and placed in
  Cotton Invest under control of the IMF.
• Participates in EBRDs Microfinance and Trade
  Finance programmes since June 2005.
• The CEO of Agroinvestbank is Mr. Saidmurodov and
  1st Deputy Mr Vafaev.

8
OJSC TajikSodirotBank TSOB

• 9 branches, 4th Tajik bank
• OJSC TojikSodirotBonk TSOB (Former Tajik branch
  of the VneshEconombank Bank of Foreign trade
  with good international trade finance experience)
  
• Universal commercial bank present both in urban
  areas and in the cotton industry, Khorog, Kulyab.
• The shareholders of Tojiksodirotbank are around
  10 businessmen active in modern sector of the
  economy (telecommunication, consumer goods,
  cotton, construction materials, resulting in
  rather modern commercial services)
• After equity investment of EBRD and IFC in 1999
  and exit in 2003, has improved its governance and
  became the top performer in EBRDs programmes in
  Trade and Micro since 2004. Has also attracted
  ADB private sector funding and serves several
  International organizations.
• The CEO of Tojiksodirotbank is Mr. Lalbekov and
  Deputy Mrs Loginova.

9
CJSC TajPromBank

• 12 branches in Dushanbe, regions of republic
  subordination and in the Sogd region
• TajPromBank was founded in 1995, well-managed
  universal bank still lacking of international
  exposure
• Participates in EBRDs Micro and Trade Finance
  programmes
• The main shareholders of TajPromBank are mainly
  individuals with one principal shareholder, also
  CEO Mr. Ziyaev, resulting in prudent banking

10
OJSC Bank Eskhata

• Based in Khujand, with very strong presence in
  the Sogd, Pendjikent and developing in Dushanbe
  and southern towns with the EBRD microfinance
  programme since 2004.
• Eskhata is the ancient name of Khujand-Leninabad,
  named by Alexander the Great) and the bank was
  established in 1993. Characterised by young and
  dynamic Northerners.
• EBRD and Shore Bank (Chicago, USA) invested
  equity in Eskhata in December 2005 (19 and 6 )
  in order to increase the capital to the new
  minimum capital requirements and now seat on the
  executive Board.
• The main shareholders of Eskhata bank are the CEO
  Mr. Nasirov and his family.

11
1st Micro Finance Bank

• Fast growing network with strong presence in GBAO
  and Rasht valley.
• New bank created in 2004, sponsored by the
  AgaKhan bodies with equity investments by IFC and
  KfW, also providing a Credit line
• Mainly focused on Microfinance and deposits,
  offers European standard services and serves
  several international organizations
• The CEO is Jim Eagan

12
Next steps of development of the Tajik banking
sector

• Strengthening by attraction of additional capital
  and foreign investment (Kazakhstan, EBRD, IFC)
• Entry of new foreign banks (Kazakhstan, Pakistan)
• Product development cards, on-line banking,
  services
• Attraction of deposits to ensure intermediary
  role and inject additional funds in the economy gt
  TRUST
• Creation of Deposit Insurance
• Creation of Credit Bureau
• Adoption of Anti Money Laundering law and
  regulations
• Strengthening of the supervision function
• Institutional building programmes
• Creation of an Independent Banking Association

13
CONCLUSION

• The Tajik banking sector has improved
  significantly since 3 years
• A solid banking sector is a pre-condition for
  economic growth
• Opening a bank account in a Tajik bank is now
  safe
• The choice is broad
• The international community must send this
  message of trust
• Thanks for supporting the banking sector.