To improve the effectiveness of a training, the first thing to do is to define exactly what its purposes are, and, thus, what needs it is meant to cover. Knowledge of the needs: needs definition has too often been hastily compiled and defined without active co-operation of the concerned banks’ top management.
A lot of efforts have been made in the training of bankers area. They did not always reach all the expected success. Short seminars are often considered as not being concrete (practical) enough to help solve today’s problem*.
After having analysed the changing situation and defined the best logical ways to realise the expected changes, the project leader has to set-up the concrete and material conditions for the implementation of the change.
Any change process is made of successive steps that should be followed carefully. In a concrete fashion, to proceed by logical progression, any change project has to be broken down into phases.
This third part of the handbook is meant to suggest a coherent overall approach of the management of the changes that have to be completed in the C.I.S. banks, suggesting improvements to be implemented, as much as possible in terms of ways to do things: how to manage to achieve efficiently the required changes?
The net Income derived from margins on interests is sensitive to the variations of interest rates On the credit side, the debit interest rates register the variations immediately; on the resources side, the credit interest rates register the variations slowly.
If the above-mentioned risks materialise they can have serious consequences on a credit institution alone but also on the whole banking system.
Market risks The main function of banks on the markets (financial, currencies, derivatives, etc.) is to intervene on behalf of their customers: so the risk remains risk one customer.
Definition This one is the most dangerous and common risk a bank has to face; this happens every time a customer does not respect his financial commitments with the bank; most of the time, this is the reimbursement of a loan.
Definition This risk comes from the variation of foreign exchange rates and appears when a bank has assets and debts in foreign currencies. Depending on the variation, the situation of the bank will be as follows.
