Page 17 - NIBAF-Training Matters January - June 2023

NIBAF organized eighteen programs
over the period for different stake-
holders including banks, SMEs and
academia.
Bankers need good analytical skills
to assess customer’s ability &
willingness
to
disbursing a loan. Such an assess-
ment requires a coherent under-
standing of financials using differ-
ent techniques which is more
significant in case of extending
finance to small enterprises who
generally have inadequate financial
records which warrants adopting
analysis
creative
financial
tecniques. NIBAF conducted four
value chain agents with mitigated
NIBAF also conducted two training
risk and improved credit assess-
programs on Value Chain Financ-
programs for Relationship Manag-
ing-Opportunities in SME Banking.
ers and Branch Managers on SME
ment of the borrower and the
banking to develop their credit
This training provided valuable
improvement
credit
and
in
insights to participants on the
assessment skills related to SME
payment risk with shifting the focus
from bi-party (FI-SME) relationship
lending. Other important aspects
concept, products and business
the
during
discussed
to a tri-party (FI-anchor-SME/Agri)
models under Supply Chain Financ-
training
potential
ing(SCF). It also imparted knowl-
included
relationship that leverages the
identifying
edge on SCF assessment and its
trade and payment relationship
clients and understanding their
between
larger
related risk profiling, leveraging
and
anchor
financing needs, performing credit
Agri/SME supplier/distributor.
innovation
and
evaluation of SME customers, prac-
technological
tice session on cash flow analysis,
advancement. The trainer also
key considerations in approving
New product development and
discussed significance of techno-
logical integration in the VCF model
process innovations are key aspects
SME loans/credit lines, provision of
for the growth and sustainability of asm in entrepreneurship ideas strategies and policies. Under the financing. This requires thorough ment Information System (LRMIS), er perspective and how an existing Training Programs on Housing was conducted by Mufti Uzair • IBBO-22 was conducted by Qazi February 16, 2023. 55 participants SME Programs repay prior to non-financial advisory services etc. to extend liquidity to important
any business and banking business shared by the trainer and asked Environmental and Social Risk understanding of agri sector and types of charges, personal guaran- customer of bank can be made Finance Ashraf Usmani, Mufti Syed Sabir Abdul Samad during June 5-7, attended the session.
is not an exception. There is a need relevant questions related to differ- Management(ESRM) framework, various measures taken by SBP. tees etc. Mr. Adnan Adil, Head Legal, effective by informing him to utilize Hussain and Mr. Imran Ahmad. 2023 in Mansehra. The program
to enhance human capacity by ent business ideas, their commer- financial institutions identify E&S EXIM Bank conducted three itera- different modes of easy financing. Housing sector holds its prominence The program was attended by was attended by 34 participants • Islamic Banking Awareness
imparting skills and techniques cialization prospects and seeking risks associated with their clients or NIBAF in collaboration with SBP tions of this programs while Mr. Another special program on Islamic in the economy due to its sizeable 28 participants including bankers including bankers and students session at Fatima Jinnah
that would help the banking financial support from banks. More investees to minimize the potential has initiated an extensive capacity Nasir Jamil, Area Head, CAD, Bank Agri finance was conducted at portion of production activity, and students from Punjab from Hazara University. Women University for Women,
business tap-in potentials clients by than four hundred students from impacts from such exposure on development program for banks to Alfalah Ltd conducted two itera- Lahore by Mr. Saqib Imran, Head of linkages to land markets, materials, University, Gujranwala Campus. Rawalpindi was conducted on
developing products with peculiar commerce, finance and marketing their lending and investment promote understanding of financ- tions. Both trainers are seasoned Agri banking, Albaraka Bank Limit- tools, durable goods, labor and June 1, 2023 by Mufti Abubakar
features that factor-in the client departments of the two universities portfolios. This reduces the financial ing requirements of the agriculture bankers with over 30 years’ experi- ed. Mr. Saqib has over 25 years of financial markets and hence is a Siarujuddin and Mr. Manzoor
needs. Keeping in view this import- attended these programs. institutions’ financial liability and sector, equip banks with necessary ence in commercial bank lending. experience in the Agri Finance priority sector warranting focused Ahmad. The session was attended
ant feature, NIBAF designed a reputational risks arising from E&S tools and techniques for serving the Sector. He explained the topic from efforts for economic uplift. Demand by 126 faculty members and
customized training program on NIBAF also organized a series of issues amid a tightening regulatory subject priority sector more effec- NIBAF conducted three programs the perspective of Islamic Banking of housing units is also burgeoning students of the university.
Product Development & one-day awareness programs for environment. In addition to tively and efficiently and to extend on Remedial Management in Ideology and shared details of utiliz- yet the sector remains highly
Program-based Lending. An SMEs & banks at Sialkot, Faisalabad, improved management of E&S financing under the SBP conces- Agri-finance during this period at ing shariah compliant modes under-developed and untapped • Islamic Banking Awareness
important part of this program is Rawalpindi, Attock and Chakwal. risks, financial institutions can also sionary finance schemes. Lahore and Multan. Mr. Muhammad including Ijarah and Musharka. The primarily due to lack of mortgage session at Lahore Chamber of
the discussion on bank business These programs were attended by seize a growing cluster of sustain- Yahya, Head Agri Business, Bank participants asked different ques- products and banks’ financing Commerce & Industry (LCCI)
models, assessing product feasibili- participants from Chamber of Com- ability business opportunities such During H2FY23, NIBAF organized Alfalah Ltd and Mr. Sarfraz Hussain, tions regarding customer percep- structures besides slack in relevant was conducted on June 5, 2023
ty and hands-on product develop- merce & Industry, Women Cham- as renewable energy and carbon In view of the agreed benefits and Bhd conducted the training and five online programs on Credit Risk Head Business, Bank of Punjab tion for extending Islamic Agri skills and conducive environment. by Mufti Syed Sabir Hussain and
ment exercises and successful ber of Commerce & Industry, SMEs finance, outperform their competi- in compliance to the global recog- discussed SBP ESRM Manual & its & Security Documentation for conducted the sessions. Both train- Finance. Mr. Maqsood Hussain Bhatti.
cases. The program content also including service providers, manu- tors, and attract new capital. nition of ESRM, SBP also issued Implementation, Environmental & agri-officers of banks. The objec- ers have over 28 years of experience In order to develop banks capacity The session was attended by 30
includes understanding potential facturers and entrepreneurs. NIBAF guidelines on Green Banking in Social Due Diligence (ESDD) procedures tives of this program is to develop in Agri banking. The objective of Two programs were conducted on in the area of mortgage products, participants.
NIBAF conducted five online training
SMEs & their borrowing needs, engaged trainers from SBP, SBP 2017 and a detailed Environmental & processes, Overview of IFC Perfor- understanding of banks’ officials this course is to highlight the signif- Agri Business Risk and Lending programs on housing finance.
elements of program based lend- BSC, SMEDA, BOP and Faysal bank and Social Risk Management mance Standards and Other Inter- regarding credit risk, need of securi- icance of credit monitoring and to Techniques at Sahiwal and Baha- These courses highlight the importance IBCC-58-Module-I
ing & relationship lending, issues & to share key insights on refinance Implementation Manual (ESRM) in national Standards, Post Transaction tization in agri-lending, legal recognize & evaluate problem loans. walnagar where more than 50 of housing sector, scope of housing NIBAF conducted 4 iterations of
challenges and the processes schemes, SME policies, banking November 2022. Monitoring, ESDD Checklist Exercise concepts of various assets & under- The program also includes discus- participants from different adjoin- financing in Pakistan, concepts of FIBO program in H2FY23 as listed Islamic Banking Certificate Course
involved in booking SME loans. products available under Islamic and related Case Studies. So far, lying securities, significance and sion on the causes of default, its ing areas participated. This house mortgages & its types, risk below: is the flagship training program of
and conventional modes, financing In order to develop related capacity almost 200 banking officials work- legal aspects of documentation. impact on overall loaning portfolio, program covered different aspect assessment & mitigations, collateral Islamic Banking Branch Islamic Banking Awareness NIBAF which aims to provide a pants including various banks’ Elahi, Head Product Development, Certified Shariah Auditor
SBP has launched various refinance procedures & processes. The speak- of banking industry, NIBAF has ing in project finance, corporate, Credit underwriting requires good type of risks & their evaluations in of Agri Finance including risk iden- & security documentation, comparison • FIBO-75 was held in Peshawar Operations(IBBO) Sessions for Academia platform for Islamic finance profes- officials and faculty members of Askari Ikhlas Islamic Bankin
schemes to extend concessionary ers discussed and highlighted main been working in collaboration with risk, CAD and Green Banking analytical skills to determine terms of obligors, size and pricing of tification, risk mitigation measured of home loan vs mortgages, marketing during January 9-13, 2023. The sionals to develop their insights on COMSATS University, Islamabad. As trainer discussed fundamentals Islamic Banking Institutions must
credit besides implementing an features of various subsidized and International Finance Corporation division have been trained under borrower capacity and willingness the loan. Understanding of early for farm/non-farm cedit, sales tech- & sale techniques, challenges & trainers included Qazi Abdul This three-day program has been The following awareness sessions the concepts and applications of per practice, leading Shariah and practic
enabling regulatory framework to credit guarantee schemes specifi- (IFC) to leverage the organization’s the program. to pay; credit officers are required to warning signal, underlying security, niques for attracting farmers and opportunities and SBP regulations. Samad, Mufti Asad Gul and Mr. designed to cater to the needs of were conducted during the period: Islamic banking and Shariah Principles experts and market practitioners & financial re
support growth of SME credit. cally designed by the SBP for SMEs. global knowledge and expertise in thoroughly analyze borrower’s collateral & various guarantees, overview of SBP low cost and regu- Syed Raheel Rizvi, Head of Housing Farid Khan. The program was Branch/Operation Managers and and methodologies with a practical including Mufti Irshadh Ahmad the Islamic & conventional bank compliant to the Shariah principles
NIBAF organized four trainings on More than 500 participant attended sustainable finance to support local Training Programs on credit history, visit borrower’s evaluation of repayment flows are lar loan schemes. One of the main Finance, Bank AL Habib along and attended by 70 participants other branch staff of Islamic banks. • Islamic banking awareness perspective. The course consists of Aijaz, Mufti Najeeb Khan, Mufti financial statemen
SME Regulatory Framework and these programs banks improve their E&S practices, Agri-financing place/business, vet documents to also covered in the program. The aspects of this program is a knowl- Mr. Wasif Hussain, Joint Director, SME, from various banks and It covers basic concepts and philos- session for the students and 16 comprehensive modules and a Usama Ehsan and Mufti Abubakar Financial Accounting Standards, Shariah matters.
Refinance Schemes to enhance with a focus on ESRM. NIBAF has establish title genuineness, evalu- participants took active participa- edge sharing session with field Housing & Sustainable Finance students of IMSiences and ophy of Islamic economic guide- faculty members of Bacha Khan candidate needs to pass 16 quizzes Sirajuddin were invited to share Accounting and Auditing Board of skill and level of competence of a
participants’ understanding TOT Programs on Sustainable launched a Training of Trainers Agriculture is an important sector ate loan-size & its purpose, deter- tion in the training program and experts wherein progressive farm- Department conducted these trainings Shariah scholars. lines; Shariah concepts related to University Charsadda was and a final exam for successful their expertise with participants. AAOIFI, accounting treatment of
regarding prudential regulations Banking (TOT) program on ESRM to familiarize of the economy. It contributes mine loan price and duration etc. got clarity on risk assessment and ers, Agri product innovator, farm and shared their views on housing businesses; Islamic banking deposit conducted by Qazi Abdul completion of program and eligibility deposits products with special Islamic finance industry. The Shari-
for SME financing and features of banks with ESRM practices that are significantly towards the national The officials are also expected to remedial management. machine modernization consul- finance risks and deliberated on • FIBO-76 was held during February categories; main contracts for Samad and Mr. Farid Khan to receive the certificate. Accounting for Islamic Financial reference to Mudarabah based ah Audit certification ensures that
SBP’s subsidized refinance & credit Sustainable financing is gaining compliant with the Green Banking income, provides employment have a clear understanding of types tants, cattle farmers etc. are invited current housing finance schemes & 13-17, 2023 at Faisalabad. Mufti islamic banking deposits /borrow- which was attended by 33 Transactions deposits, accounting for Islamic the Shariah auditor is proficient to
guarantee schemes. The partici- more traction around the globe Guidelines (GBGs), IFC Performance opportunities to a sizeable work- of assets/properties, their nature A special program on Agri Finance to share their experience of farming regulatory direction. During these Uzair Ashraf Usmani, Mufti Syed ing and brief working on pool man- participants. NIBAF has also introduced this modes of deposits/financing side of perform the task.
pants took keen interest in these with investors increasingly demanding Standards, and other Pakistan force and ensures food security for and characteristics, legal attributes was conducted at Sukkur for during the session. Mr. Yahya sessions, discussion was also held Fundamentals of Islamic Banking Over the five days, foundation level Sabir Hussain and Mr. Farid Khan agement vis-à-vis SBP guidelines flagship program in modular form The 2-da
programs by asking questions on environment friendly products regulations. Through this capaci- the masses. Increased demand of and legal entitlement to constitute enhancing the capacity of commer- Hameed, Head of Agri Business, on earlier Government Low-cost Operations (FIBO) concepts including principles of were the trainers for the • Islamic Banking Awareness to make it convenient for attendees for Islamic Financial Transactions”
different aspects of SBP schemes across all industries. The financial ty-building training, participants agri-produce and availability of security/collateral. This training cial bankers from Baluchistan and Bank Alfalah Ltd conducted both Housing Schemes and banking Islamic economics and Shariah, program. The program was NIBAF conducted 3 iterations of session at GC University for of the program. First module of the has been design
and clarification on various PRs. The industry, under guidance and drive learn to develop an Environmental innovative farming techniques is program is designed to provide a Sindh. The two day program was the programs and shared his exper- products on housing finance to Fundamentals of Islamic Banking Islamic banking and its pillars, com- attended by 37 participants the IBBO program over the period Women, Faisalabad was fifty-eight iterati
trainers explained the importance from the financial sector supervi- and Social Management System creating lucrative opportunities for comprehensive understanding of specially designed to promote Agri tise using examples from his own highlight the importance of the Operations(FIBO) is a five-day parison of conventional vs Islamic including bankers, SBP BSC as detailed below: conducted by Qazi Abdul was held during May 22-27, 2023 a
of these schemes, their key features sors, is also considering Environ- (ESMS) that places significant the banks to tap potential of this credit risk, documents required for finance in province of Baluchistan experiences in agri credit product sector and effects of discontinua- program that aims to provide a banking, Islamic law of contracts Faisalabad officials, faculty Samad and Farid Khan on NIBAF Islamabad with 22 partici- issues fac
and business potential for banks. mental, Social, and Governance emphasis on a bank’s E&S policy segment and direct agri credit to loan disbursement, assessment of and Sindh. The lead trainer of the development and lending. tion of subsidy scheme. comprehensive orientation/exposure and principles of trading are members from University of • IBBO-20 was conducted by course of their duties. The program officials and faculty members of
(ESG) aspects while devising their and capacity as well as procedures innovative borrowers. SBP is also revenue documents, related Acts, program was from HBL while about various aspects of Islamic covered in detail. This is followed by Agriculture, Faisalabad and Mufti Abubakar Sirajuddin was conducted by Khawaja Ehsan Bahauddin Zakariya University Multan. Market experts in the field includ-
Two awareness programs on entre- for identifying, assessing, manag- taking various initiatives and mea- Articles & Clauses, passbook & its senior officers from Agri finance banking operations, shariah compliant modules covering practical knowl- students of GC University for during January 17-19, 2023 at ing included Zia Akhtar Siddiqui,
preneurship skill development ing, monitoring, and reporting E&S sures to promote agriculture attributes, Land Record Manage- departments of other banks also products and SBP regulatory edge and current application of Women, Faisalabad. NIBAF Islamabad. The program Faizan Ahmad, Asfand Zubair Malik,
were conducted at Punjab Universi- risks and performing the Environ- participated to share their experi- framework. The program is designed intermediation modes and sub was attended by 42 participants Farhan ul Haq Usmani and Safina
ty, Lahore and Shaheed Benazir mental and Social Due Diligence ences. Mr. Azam, JD ,AC&FID also for both Bankers (Branch Managers, modes, their process flows & risks, • FIBO-78 was held during March including bankers and faculty Shahid.The course started with an
Bhutto Women University, Pesha- (ESDD), which encompasses identi- shed light on significance and Operations Managers, and Relationship documentation and practical 6-10, 2023 in Islamabad which members of International Islamic overview of Audit and further
war. These sessions focused on fication and assessment of a importance of Agri finance and also Managers etc.) and non-bankers issues. In the final modules, depos- was conducted by Mufti Usama University, Federal Urdu University, covered Shariah Audit, AAOIFI's
providing an overview of SBP project’s E&S risks as well as share key features of the different (Shariah Scholars, Academicians it-side products and issues includ- Ehsan, Mr. Muhammad Saarim IBADAT International University Auditing Standard, Shariah Gover-
schemes to promote SME financ- proposed mitigation measures in Agri schemes that can utilized for etc.). Renowned Shariah Scholars, ing profit distribution mechanism, Ghazi, Mr. Khawaja Ehsan Elahi and Hazara University. nance Framework, branch audits,
ing, global and local entrepreneur- the form of an environmental and low cost mechanism and hence Resident Shariah Board Members available contracts for deposit and Mr. Farid Khan. The Shariah Audit of Treasury and Pool
ship business strategies and social action plan. promotion of the Agri Sector. of different banks, other Islamic mobilization, concepts of profit program was attended by 42 • IBBO-21 was conducted during Management functions, audit of
success stories and the role and banking practitioners including sharing ratio and assignment of participants including bankers March 13-15, 2023 at Sialkot by specific modes of Islamic Finance,
importance of National Incubation NIBAF conducted an iteration of A program on Agri Value Chain was SBP officers are invited to deliver the weightage, Sukuk and their differ- and students from Foundation Mufti Syed Sabir Hussain and Quality Assurance, Shariah Advisor
Centers as a platform for students the ToT from June 19-20, 2023 at conducted at Hyderabad. Mr. different modules of the program ence from conventional bonds & University and Riphah University. Mufti Uzair Ashraf Usmani. The & Compliance Report.
to discuss and polish innovative NIBAF-Lahore. Dr. Afifa Raihana, Shahrukh, Head Agri, Bank Islami with daily assessments and a securities and SBP framework for program was attended by 33
ideas and further steer them towards Senior Environmental Specialist, Pakistan Ltd conducted the train- comprehensive assessment admin- Islamic banking are discussed in • FIBO-79 was held during May participants including bankers
establishing viable businesses. The IFC and Desiree Nathan, Managing ing and explained agri financing istered at program conclusion. detail. 8-12, 2023 in Gujranwala which and students of University of
participants showed great enthusi- Partner, EeHSSE Consulting Sdn from grower perspective to produc- Sialkot.
17 Training Matters | January-June 2023