Afghanistan Institute for Banking and Finance (AIBF)

1. Afghanistan Institute for Banking and Finance (AIBF)

2. AIBF GoalThe AIBF goal is to develop a body of qualified bankers and financial professionals in Afghanistan and develop an independent world class financial services institute.

3. AIBF Objectives: (a) Strengthen capacity in the finance profession; (b) Facilitate dissemination of the latest technical information using conventional classroom teaching, distance learning technology and internet based training; (c) Reduce gender inequality by training females in finance; (d) Build capacity in Islamic Banking; (e) promote sound financial governance and value for-money in the use of public financial resources

4. Why there is need for AIBF Because : • Skills shortage; • Existing training programmes in the country can not address banks and financial sector training needs; • Internal trainings offered by banks are not sufficient.

5. 1. -Skills shortage : - Rapid growth of Financial sector; -The financial sector lacks exposure to the latest trends in banking, corporate finance and management; - Financial sector lacks the supporting institutions and human resources that are critical to sound financial governance; - Professionally qualified accountants and auditors, loan officers, mortgage officers and financial officers are rare. Risk managers are non-existent. - English language skills—the international language of finance---is limited. - It is clear that the financial sector needs a new and sustainable approach to continuing education

6. 2. - Existing training programmes in the country can not address banks and Financial sector training needs -No institute dedicated to training bankers and financial professionals; - The institutes have: -rudimentary curricula -lack access to the latest training materials -lack technical information from first- in-class, accredited international institutions committed to excellence.

7. 3. Internal trainings offered by banks are not sufficient: -No consistent, continuous training programmes available locally which banks can rely on to train their employees; - The training sessions being relatively: - brief - no follow up - involving trainers from abroad - expensive and - more they are theoretical rather than focusing on practical problems of Afghanistan - Limited number of banks can send their staff for training abroad.

8. Shareholders of AIBF • AIBF is a DAB initiative. It is an independent, non-governmental entity operates as a public–private partnership. Shareholders of the institute are: - DAB - ABA - MISFA

9. AIBF and Afghanistan National Development Strategy (ANDS) • The ANDS gives a leading role to the private sector to lead the country’s development process within “a competitive market-based economy”; • AIBF will also scale-up capacity development in the public and private financial sector and reduce gender inequality in access to employment and finance.

10. AIBF Establishment Phases: Phase I: The following activities have been completed in phase I: - Interim Committee established; - A space has been rented to initially house the institute; - Articles of Associations developed; - 1.3 hectares land allocated for construction of a modern facility for the institute in Kabul; - An initial capital of US$1,020,000.00 raised by DAB,ABA, MISFA, and the World Bank. -A project proposal developed to get funds for construction, equipping and furnishing of a modern facility for the institute in Kabul. l

11. Phase II: The following activities have been planned • Recruitment of a Director and staff • Furnishing the rented facility; • Establishing partnership with such institute in the region; • Construction, equipping and furnishing a modern facility for AIBF in Kabul

12. AIBF modern facility will have the following components - training classes - library - auditorium • computer labs • conference hall • research facility • offices for trainers and consultants • kitchen and cafeteria • hostels both for male and female trainees • sport facility • car parking and • accommodation for security staff.

13. Equipping and Furnishing the Facility • Provision of : - vehicles, - general goods (furniture, tables, beds etc.), - installation of VSAT, video, Telecommunications, microprocessor equipment, standby generator, and other equipment for hostels and cafeteria and AIBF operation and security.

14. Why construction of a modern facility for AIBF • Increasing number of banks; • In long run AIBF will not be able to continue in small rented facility; • The Bank-e-Millie Afghan’s commitment to provide housing to AIBF is for two years only (2009 -2010); • Better learning environment needs to be provided; • In long run the institute has plan to offer long term training programmes including degree programmes.

15. Cost Estimate In US$ for AIBF Establishment, 2009-2012 • Construction of the facility 948,000.00 • Equipment and refurbishing 1,992,000.00 • Consultant and training 2,342,000.00 • Total 5,282,000.00

16. Funds status • Available funds US$1,020,000.00 • Shortfall US$4,262,000.00

17. End Thank you for your attention Any Question? Please.