Development Bank of Ethiopia

LOANPROCESSTEAM CHARTER

Addis Ababa
June 2008
 Table of Contents

Title Page
IBackground 2

II.NameoftheTeam 3

III.Mission 3

IV.Objectives 3

V.PurposeofTeamCharter 3

VI.TeamCompositionandStructure 4

VII. TeamandIndividualMandateandAuthority

(Decisionboundaries) 5

VIII.TeamOperatingPrinciples 15

IX.CommunicationandReportingExpectations 17

X.TeamandIndividualMembersPerformanceAssessment19

XI.RelationshipswithotherTeamsororganizationalunits29

XII.TeamFacilityRequirements 32

XIII.TeamvaluesandBeliefs 33

XIV.AmendmentandApprovaltoTeamcharter 37

XV.TeamAgreementDeclaration 38

1
I. Background

Development Bank of Ethiopia is a specialized Bank established to spur the

national development agenda. The Banks focal point is the provision of

customer focused lending to viable projects inline with government priority

areas by mobilizing fund fromdomestic and foreign sources while ensuring its

sustainability. To achieve this mission a well organized and flexible working

systemthatfitsthechangingbusinessenvironmentismandatory.

Tocomeupwithanefficient,flexibleandeffectiveworkingsystemtheremustbe

a reorganization of all the Banks processes and structure. Hence, the Bank has

reengineereditsloanprocessanddesignedjobsandstructureinsuchawaythat

the whole loan process tasks are performed at one place, and by a team of

variousprofessionals.

Therefore, for the smooth functioning of the process, there must be a team

charter that facilitates cooperation and coordination between case teams and

amongteammembers.Thetaskoftheloanprocessishandledfromendtoend

andtheteamisempoweredtocarryoutitstaskandshallbeaccountableforthe

end result. It is therefore in view of this that this charter is developed. The

charterdeterminestheroleandresponsibilitiesoftheteamandteammembers.

II. Name of the Team

NameoftheteamisLoanProcessTeam(LPT).

2
III. Mission
The , by coordinating and enhancing its members effort, will provide viable

investment loans with a reasonable time frame, high quality and lower cost

thereby ensuring customer satisfaction and contributing to the sustainability of

the Bank. It also encourages team development and creates an environment in

which mutual thrust and interdependence among team members flourish to

attaincommongoal.

IV. Objectives

To process loan applications amounting to birr 5.75 billion for viable

investmentprojectsfortheperiodcovering2007/082011/2012.

Toprocessaloanapplicationwithinanaverageof32days.

Toincreasethelevelofcustomerssatisfactionto80%bytheendofthe

strategicplanperiod.

To enhance and outlines the way decisions are made and the basic

principles,normsandvaluestheteammembersshoulduphold.

V. Purpose of Team Charter

The team charter/ plan/ is an integral part of the integrated product or

servicedevelopmentsystemimplementationwithintheBank.Theplanor

charterhasbeenpreparedforthreevividreasons.

1. To document a teams mission, processes, roles and responsibilities,

membership,empowermentsandbasisforinternalteammatrix.

2. Tofostertheteamconceptby

A. Including all team decision makers in the plan/ charter making

process

3
 B.Havingthemsignstheirconcurrenceonthefinalplanorcharter

3. Toprovidehigherlevelintegratedservicedevelopmentsystemleadership

teamswithavehiclethroughwhichtoguideandmentortheteamswithin

theoverallbankmanagementsystem

VI. Team Composition and Structure

The has a total of 86 members categorized under process owner, team leaders

/Principal Officers/, professionals and other support staffs /secretaries and

clerks/.Theteamcompositionisorganizedinthefollowingmanner:

3Processmanager

8PrincipalOfficers

75professionalsofdifferentdisciplesand

Secretariesandclerks

The required professions for each case team include Principal Officers, Sr.

Officers, Officers, Jr. Officers and Engineers from different discipline such as

Economics, Business Management, Accounting, Agriculture and Civil,

Mechanical and Chemical Engineering etc. Secretaries are assigned for the

processteam.

Any new member who joins the team is expected to fully understand the

contentsoftheteamcharterandhastoshowhis/hercommitmentbysigningon

thecharter.

4
VII. Team and Individual Mandate and Authority (Decision
boundaries)

TheboundaryoftheTeamrangesfromcustomersourcingandprocesstheloan

up to final collection. However, the Team does not approve its own plan and

budgetandrequestforresources.

The collective and individual authority and responsibilities of the Team are

describedunderspecificprocessteamasshownbelow.

7.1.CoreCreditProcess

Acceptorrejectapplicationdocumentonthebasisofduediligenceand

documentevaluation.

Negotiate with the customer on the prestudied project, appraisal

findingsandtermsandconditionsoftheloan.

Accept/rejectdocumentcompliancecheck

Approve/rejectdisbursementonthebasisofcompliancecheck.

Signloancontractwiththeclient

Undertakefollowuponprojectsthatarealreadyimplemented

Assessthehumanandmaterialrequirementsoftheteamanddecideon

itsfulfillment.

Analyze the performance gap of the team and decide on the type of

educationandtrainingrequiredfortheteam.

The authority and responsibilities of each Core Credit Team members can be

summarizedasfollows:

1. ProcessManagerforCreditProcess

ResponsiblefortheentireCreditProcessoftheBank.

5
 Plan,organizeandcoordinatetheworksofthe

Ensurethattheexistingsystemisatthelevelofcustomerssatisfaction.

Makeanongoingassessmentoftheenvironmenttobalancecustomers

expectationswiththeBanksobjectives.

Maintainrecordsofteamandindividualperformance

2. PrincipalOfficer

Reviewtheconsolidatedduediligencereport

Reviewingcompiledprojectcompletionreport

Reviewthestatusreportiftheprojectissick

Evaluate performance of each case team members and prepare

performancereport.

Assessandshapetheoverallenvironmentofthecaseteam.

Actsasliaisonbetweenprocessownerandcaseteam.

Review resource requirement and manpower plan and address the

teamsproblemtotheprocessowner.

Identifythecapacitygapsforthenecessaryskilldevelopment.

3. ContactPerson(Projectspecificassignment)

ResponsibleforspecificprojectsandthispersoncanbeOfficerorSenior

Officer.

Organize and coordinates the work of the case team in processing a

particularproject.

Represent the case team and serves as a contact person for a specific

projectactivity.

Follow up and provide feedback for the Principal Officer on the

performance of the individual case team members for that specific

project.

6
 4. SeniorLoanOfficer

Participateintheevaluationofapplicationdocument

ParticipateinKYCassessment

Writeaconsolidatedduediligencereport

Actasacontactpersonwhenassigned

Negotiate with the client on the prestudied and project appraisal

reports.

Undertakeprojectfollowupfordisbursement

Preparestatusreportiftheprojectissick

Support and advice team members and involve in the daytoday

operationofthecaseteam.

5. LoanOfficer

Participateintheevaluationofapplicationdocument.

ParticipateinKYCassessment

Actasacontactpersonwhenassigned

Negotiate with the client on the prestudied and project appraisal

reports.

Undertakeprojectfollowupfordisbursement

Support and advice team members and involve in the daytoday

operationofthecaseteam.

6. JuniorOfficer

EngageincollectingKYCinformationoftheapplicant.

Collect data for Preparing plan, budget and credit operation activities

reports

Participateinthepreparationofperiodicreport

7
 7. CivilEngineer

Check the appropriateness of construction and other civil work

documents

Evaluatingtheprogressofcivilworkandpreparereport

Providing technical advice to promoters on the plan and civil work

progress

Participate in project followup and preparation of provisioning report

duringsitevisit

8. Mechanical/IndustrialEngineer

Check the appropriateness of Performa of machinery and equipment

andcatalogue

Evaluate purchased machinery and equipment are as planned and

preparereport

Providetechnicaladvicetopromoterswiththeassignedteammembers

regarding machineryandequipment

Check and ascertain that industrial project layout is proper in

accordancewithagreedspecification.

9. ChemicalEngineer

Checktheappropriatenessofrawmaterialandchemicals

Evaluate purchased raw material and chemicals are as planned and

preparereport

Providetechnicaladvicetopromoterswiththeassignedteammembers

regardingprojectinput(Rawmaterial).

7.2.AppraisalSubprocess

Approveorrejectloanapplicationonthebasisofappraisalfinding.

8
 Advice the core process on the feasibility of the project and its

implementation

Assessthehumanandmaterialrequirementsoftheteamanddecideon

itsfulfillment.

Analyze the performance gap of the team and decide on the type of

educationandtrainingrequiredfortheteam.

The authority and responsibilities of each appraisal process team members can

besummarizedasfollows:

1.ProcessManagerforAppraisalProcess

ResponsiblefortheentireAppraisalSubprocessoftheBank.

Plan, organize and coordinate the works of the Appraisal Subprocess

team

Ensurethattheexistingsystemisatthelevelofcustomerssatisfaction.

Makeanongoingassessmentoftheenvironmenttobalancecustomers

expectationswiththeBanksobjectives.

Maintainrecordsofteamandindividualperformance

2.PrincipalOfficer

Reviewandcompileappraisalfindingsoftheproject,incorporateKYC

assessmentandpreparethedraftappraisalreport

Evaluate performance of each case team members and prepare

performancereport.

Assessandshapetheoverallenvironmentofthecaseteam.

Actsasliaisonbetweenprocessownerandcaseteam.

Review resource requirement and manpower plan and address the

teamsproblemtotheprocessowner.

9
 Identifythecapacitygapsforthenecessaryskilldevelopment.

3.SeniorLoanOfficer

Undertake market study, socioeconomic aspects and environmental

impactassessmentoftheproject

Prepareannualperformancereportsoftheprocess

Support and advice team members and involve in the daytoday

operationofthecaseteam.

4.LoanOfficer

Undertake technical appraisal including implementation schedule,

organizationalmanagementstudyandfinancialstudyoftheproject

Preparetheresourcerequirementplanandbudgetoftheteam

Support and advice team members and involve in the daytoday

operationofthecaseteam.

5.JuniorOfficer

Gathering and compiling relevant research, risk assessment data and

Backgroundinformation

Collect data for Preparing plan, budget and credit operation activities

reports

6. CivilEngineer

Review the project plan, bill of quantity and other construction

documentsandpreparereport

Support and advice team members and involve in the daytoday

operationofthecaseteam.

7. Mechanical/IndustrialEngineer

Reviewspecificationofmachineryandequipmentsandpreparereport

10
 Support and advice team members and involve in the daytoday

operationofthecaseteam.

8. ChemicalEngineer

Reviewspecificationofrawmaterialandchemicalandpreparereport.

Support and advice team members and involve in the daytoday

operationofthecaseteam.

7.3.ProjectRehabilitationandLoanRecoverySubprocess

Evaluatesickprojectsandcarryouttheappropriatetreatment.

Discusswiththecustomeronthefindingsandproposal

Recommendapprovalorrejectionofrehabilitationandforeclosure.

Assessthehumanandmaterialrequirementsoftheteamanddecideon

itsfulfillment.

Analyze the performance gap of the team and decide on the type of

educationandtrainingrequiredfortheteam.

The authority and responsibilities of each Project Rehabilitation and Loan

RecoverySubprocessTeammemberscanbesummarizedasfollows:

1.ProcessManagerforProjectRehabilitationandLoanRecoverySubprocess

Responsible for the entire Project rehabilitation and loan recovery

ProcessoftheBank.

Plan, organize and coordinate the works of the Project Rehabilitation

andLoanRecoverySubprocessteam

Ensurethattheexistingsystemisatthelevelofcustomerssatisfaction.

Makeanongoingassessmentoftheenvironmenttobalancecustomers

expectationswiththeBanksobjectives.

Maintainrecordsoftheteamandindividualperformance

11
2. PrincipalOfficer

Preparerehabilitationorforeclosurerecommendationreport

Preparewriteoffproposal

Discusswiththecustomeronthefindingsandproposal

Evaluate performance of each case team members and prepare

performancereport.

Assessandshapetheoverallenvironmentofthecaseteam.

Actsasliaisonbetweenprocessownerandcaseteam.

Identifythecapacitygapsforthenecessaryskilldevelopment.

3. SeniorLoanOfficer

Examine the project file from the side of market and managerial

condition

Collect data on the operational, technical and financial status of the

project

Thoroughly discuss the identified problems with the project

management

Support and advice team members and involve in the daytoday

operationofthecaseteam.

4. LoanOfficer

Examinetheprojectfileforfinancialandmanagerialaspect

Collectingdataontheoperationalandfinancialstatusoftheproject

Thoroughly discuss the identified problems with the project

management

Reviewperiodicreportsontheoverallperformanceandachievementof

theteam

12
 Support and advice team members and involve in the daytoday

operationofthecaseteam.

5.SeniorLegalOfficer

Prepare30dayslegalnotice

Takeoverofproperty

Auctiondocumentpreparationandannouncementfacilitation

Searchforadditionalproperty

5. CivilEngineer

Examinetheprojectfileforitstechnicalsituation

Collect data on the operational and technical status of the project and

preparereport

Valuingbuildingandcivilworks

6. Mechanical/IndustrialEngineer

Examinetheprojectfilefortechnicalstatusoftheproject

Collect data on the operational and technical status of the project and

prepareareport

Valuingmachineryandequipmentandprepareareport

Valuingrawmaterialstockandotherassociatedmaterials

7. LawClerk

Deliver30dayslegalnoticetopromoter

Processtheregistrationofcontractsandcollateralswiththeconcerned

notaries;

Deliver correspondences sent to police and administrative bodies to

enforceandwitnesspropertytakeoverandauction;opensfileatcourt.

13
VIII. Team Operating Principles

The operating principles help to define the major duties of the team and

individualandhowcommonresponsibilitiesarecarriedoutforthesuccessofthe

teamsgoal.

Teammembersareresponsibleandaccountablefortheloanprocessingfromend

to end (customer sourcing to final collection) except the final approval of the

loan,whichisthemandateoftheloanapprovalteam.

8.1Teamnormsandrules

Theteammembersareexpectedtocreateconduciveenvironmentintheirdayto

dayinteraction.Themajornormsandrulesthattheteamshouldupholdinclude:

Internalconflictsaremanagedintheprocessteam.

Teammembersshallusebasic,direct,honestandcivilcommunication

withineachotherandwithcustomers.

Team members should be open minded to new ideas and respect

membersopinion.

Each team members will keep their team friends informed of every

teamactivitiesandprogressandthePrincipalOfficeralsoinformany

changeandprogressoftheteamstotheProcessowner/Manager/.

Individual team members are personally accountable for the decision

theymakeandactionstheytakewithouttheconsentoftheteam.

Eachteammemberwilldevotehis/hertimetotheindividualteamtask

andfortheattainmentoftheorganizationalgoalobjective.

The team will conduct self evaluation monthly, quarterly,

semiannuallyandyearly.

Teammembersperformanceevaluationswillconsidercontributionto

theteamandtheorganization.

14
 The team shall continually improve its performance, monitor,

implementandtrackimprovementstoteamprocess.

Identify and execute the required changes in team membership and

leadershiptransition.

Exclusionofateammembermaybemadewhen:

1.Amemberlacksteamsprit

2. There is performance gap which has been tried to be filled but

didnotimprove

3.Unethicalbehavioriddemonstrated

4.Thevolumeofworkdoesnotwarrant

5.Aparticularexpertiseisnomoreneeded

Additionalteammemberscouldbemadewhen:

1.Volumeofworkincreases

2.Thereisaneedforexpertiseindifferentfields

Replacementofteammemberscouldbeeffectedwhen:

1.Ateammemberleavestheprocessforanyreason

2.Changeofteammembersisdiscussedatcaseteamlevelandthen

approvedbyprocessowner

8.2TeamMeetings

Theprocessteamandthecaseteamshallconveneasnecessarytodiscussand

decide on issues that require joint decision such as due diligence evaluation,

acceptingorrejectingprojectproposal,andanyotheradministrativefunctions

thatfallwithintheirjurisdiction.Theguidingprinciplesare:

15
 The team is expected to pass decision by consensus. Consensus

decisionswillnotberevisitedunlessthereisaconvincingjustification

onthesubject.

Team members are collectively accountable for the decisions they

make.Theyarealsoaccountableforperformingtheirassignedrole.

Everymemberhasarighttoexpresshis/herviewsandideaswithout

anyreservation,thathe/shefeelsvaluableforconsideration.

2/3teammembersconstituteaquorum.

TheProcessOwnerandPrincipalOfficerservesasafacilitatorduring

processteamandcaseteammeetingsrespectively.

OneofthemembersassignedbytheProcessOwnerorPrincipal

Officerservesasasecretary.

Theteamwillhavearegularmeetingprograms

Theteamshouldbeginandendmeetingsinatimelyfashion.

Minuteswillbeavailablebothinhardandsoftcopyforteam

members.

Meetingminuteswillbeavailablewithin24hoursofthemeetingbeing

held.

IX. Communication and Reporting Expectations

TheTeamwilluseformalandinformalcommunicationstrategiestofacilitate

theflowofinformationandfeedbackverticallyandhorizontallywithinand

outside the process. The major kind of communications and reporting

expectedfromtheteaminclude:

TheprocessownerandthePrincipalOfficersarerequiredtoshareany

new development that they come across through environmental

16
 assessment to the process team members and provide timely feedback

onperformance.

Any formal communication required outside the process team shall be

formallyhandledbytheprocessowner.

The contact person is the one responsible to communicate with

customersonbehalfofthecaseteam.

Case team members will communicate each other without any barrier

andthecontactpersonandtheprincipalofficerservesasamediatoron

interteamcommunication.

The case team is required to prepare its plan and budget and progress

reportstoprocessowner.

The Process Manager is required to present plan and budget and

performancereportsoftheteamtotheExecutiveManagement

The Process Manager makes formal communication with all organs of

theBankrepresentingtheprocessteam.

Theteamshallobtainnecessaryprojectinputfromothersupportteams

such as research, risk etc. using formal and informal communication

means.

The team shall communicate the status and progress of the loan

applicationtootherloanactorsthroughonlineservice.

Loan approval/rejection will be submitted to the main loan approval

teamforfinalapproval.

Disbursement decision order will be communicated for payment

throughProcessOwner.

The process or case team will use any means of communication and

reporting which may include; face to face, formal reports, letters,

17
 memos,telephone,faxandITinstrumentstohandletheloanprocessof

theBank.

X. Team and Individual Members Performance Assessment

The performance evaluation of the team rests on the successful

achievement of the planned target of the fiscal year by taking in to

account customer, business process, learning and growth and financial

perspectives.

Theoverallperformanceoftheprocessteam,caseteamsandindividual

memberscontributionshallbetakenintoaccount.

Performanceevaluationofeachcaseteamsareevaluatedbytheprocess

owner against the planned target by taking in to account customer,

businessprocess,learningandgrowthandfinancialperspectives.

Caseteammembersevaluateeachotheraftercompletionoftheproject

assignedtothem.

Principal Officer also evaluate the performance of each team members

based on quality, speed, cost and number of projects that the team

memberhassuccessfullyaccomplished.

Each team members evaluation result shall be used for individual

membersrewarddetermination.

Feedback on performance evaluation result shall be provided on a

regularbasisforimprovement.

The best performer of the case teams is disclosed in the presence of all

processteammembers.

The name of the best performer case team of a period is posted on the

noticeboardforrecognition.

18
 The bases of the teams performance measurement system that help to

evaluatetheteamsachievementcanbepresentedasfollow:

1) CustomerSouring/RecruitingCustomer/

Deliverable

Recruitedcustomerwhoexpressedhis/herintentiontoinvestment

Successfactorandstandardsofthedeliverables

Qualityofthework

Customerswillhavefullinformationaboutthebanksrequirementand

actaccordingly

Timeliness

Customerswillbecontactedandinformedasperthesettimeschedule

2) CompleteLoanApplicationReceiving

Deliverables

Screenedloanapplicationdocument,verifiedagainstchecklist,signed

disclaimeragreementandregisteredapplication.

Successfactorandstandardsofthedeliverables

Qualityofthework

o Any received documents should fully match with the banks

requirementchecklist

o The customer should be well handled and entertained (no

customercomplaint)

o The customer should also be well informed about the banks

requirement

o Acorrectregistrationofapplication

19
 Timeliness

The recipientshouldcomplete document collection with

inamaximumof1hour

Applicationanddisclaimersigningwithin30minutes

Registeringtheapplicationinadatabaseanddisseminate

theinformationtotheconcernedpartiesin30minutes.

3)ApplicationdocumentScreening

Deliverables

Reviewedandevaluatedapplicationwithsupportingdocuments

Successfactorandstandardsofthedeliverables

QualityoftheWork

o Any application document should fulfill the banks

guidelinesandrequirements;otherwiseithastobereturned

tothecustomerforfulfillment.

o Any undo (noncreditworthy) project promoter should be

rejected

o Any incomplete document should be returned to the

promoterimmediately.

Timeliness

o Applicationdocumentscreeningmustbecompletedwithin

1dayoftime.

o Customermustbenotifiedofhis/herapplicationstatusin1

hour

4) UndertakingDuediligenceAssessment

Deliverables

WelldefinedcustomerwhocanaccesstheBanksloan

20
 Successfactorandstandardsofthedeliverables

Qualityofthework

o Clearly defining the character and credit worthiness of the

promoter

o Preparingaqualityreportbasedontheformatprovided

o The customer should be well handled and entertained (no

customercomplaint)

Timeliness

The application recipient should be at his/her working

area(desk)

Discussionwithcustomershouldbecarriedoutwithina

maximumof1hour.

5) ProjectAppraisal

Deliverables

Appraisedprojectwithapproval/rejection

Successfactorandstandardsofthedeliverables

Qualityofwork

o The loan proposal report should contain all the appraisal

componentsasperthecreditpolicyandguidelines

Timeliness

o The appraisal report must be completed and communicated

within13days

6) DiscussionontheAppraisalfindings

Deliverables

Agreementreachedwithcustomerontheselectedpoints

21
 Successfactorandstandardsofthedeliverables

QualityofWork

Thecustomerhastoclearlyunderstandthetermsandconditionof

theBank

Thecustomerhastoberespectedandcommunicatedproperly

Discussionagreementtermsandconditionshavetobecarefullyfill

intheformat

Timeliness

Discussionswithcustomerontheappraisalreporthavetobemade

withinaday.

7) LoanProposalReviewandApproval

Deliverables

Loanapproved/rejected

Successfactorandstandardsofthedeliverables

QualityofWork

The credit policy and loan approval team procedure should be

consideredwhilemakingthedecisionofapproval/rejection

Theapprovalteamshouldreadallthecontentsoftheappraisaland

riskreportindetailandmadeproperdecision

Timeliness

Theapproval/rejectionreport(minute)shouldbepresentedwithin

3days.

8) LoanandMortgageagreementsigningandDocumentation

Deliverables

Signedandregisteredloanandmortgageagreement.

22
 Purchasedinsurancepolicy,currentaccountopened,equityblockedand

released.

Declarationofeffectivenessoftheloanagreement.

Successfactorandstandardsofthedeliverables

QualityofWork

A customer well understands the content of loan and mortgage

agreement.

Ensures that the collateral asset exists and not claimed by other

parties.

Ensure that registration of loan and mortgage agreement is

properlyeffected

Ensurethattherightinsurancepolicyispurchased

Timeliness

Loan and Mortgage Agreement signing, documentation and

Blockingandequityreleaseshouldbemadewithin2days

9) Conditioncompliancecheckingforequityrelease/disbursement

Deliverable

Compliancereportonfulfillmentoftermsandconditionoftheloan

Successfactorandstandardsofthedeliverables

Qualityofwork

Compliancereportmustbepreparedaspertheformat.

Thecompliancereportshouldbepreciseandunderstandable

Timeliness

The compliance check report must be finalized and submitted

within5days.

23
 Theapplicantmustbecommunicatedtheresultofthecompliance

checkreportwithin30minutes.

10) LoanDisbursement(EquityRelease)

Deliverables

Loandisbursement(equityrelease)effectedinthedesiredform

(Cash,L/C,CADetc)

Successfactorandstandardsofthedeliverables

QualityofService

Thecustomermustbewellhostedbythecontactperson

Fulfillmentofpreconditionsmustbeensured

Theaccuracyofdisbursementfiguresmustbeverifiedthroughout

thedisbursementprocess

Timeliness

Equityrelease/disbursementmustbecompletedwithinaday.

11)ProjectCompletionreport

Deliverables

Preparedprojectcompletionreport

Successfactorandstandardsofthedeliverables

QualityofDeliverables

Thereportmustpossesstherealityofthevisit

Thereportmustbecompleteaspertheformatdesigned

Timeliness

The site visit and project completion report has to be completed

within5days.

24
12) ProjectFollowup

Deliverables

Followupreport

Successfactorandstandardsofthedeliverables

QualityofDeliverables

Thereportmustpossesstherealityofthevisit

Thereportmustbepreparedaspertheformatdesigned

Timeliness

The site visit and follow up report has to be completed within 5

days

13)Sickprojectreportandfileassessment

Deliverables

o Examinedprojectfile

Successfactorandstandardsofthedeliverables

QualityofDeliverables

Theprojectfilemustbecheckedproperly

Timeliness

Projectfileexaminationhastobecompletedwithin2days

14)Assessingtheprojectphysicalandfinancialstatusoftheproject

Deliverables

o Preparedprojectrehabilitationrecommendationreport

Successfactorandstandardsofthedeliverables

QualityofDeliverables

Theproposalmustpossesstherealityofthevisit

Theproposalmustbepreparedaspertheformatdesigned

25
 Timeliness

Thesitevisitandproposalpreparationhavetobecompletedwithin

5days

15)ProposalReviewandApproval

Deliverables

Approved/rejectedprojectrehabilitation/foreclosureproposal

Successfactorandstandardsofthedeliverables

QualityofWork

The credit policy and loan approval team procedure should be

consideredwhilemakingthedecisionofapproval/rejection

Theapprovalteamshouldreadallthecontentsoftheproposaland

riskreportindetailandmadeproperdecision

Timeliness

Theapproval/rejectionreport(minute)shouldbepresentedwithin

3days.

16)Foreclosure

Deliverables

Soldproperties/writeoffproposal

Successfactorandstandardsofthedeliverables

QualityofWork

Theforeclosureprocessmustbecompletedaspertheprocedure

designed

The writeoff proposal must be prepared as per the format

designed

Timeliness

Foreclosureprocessshouldbeperformedwithin30and1/2day

26
 Writeoffproposalshouldbepresentedwithin4days

17)ReportWriting

Deliverables

Periodicreports

Successfactorandstandardsofthedeliverables

QualityofDeliverables

Thereportsmustbeaccurate

Thereportsmustbecomplete(encompassallthenecessaryparts)

Timeliness

Thevariousperiodicreportsmustbecompletedandsubmittedwithin

thestatedtime.

XI. Relationships with other Teams or organizational units

11.1RelationshipwithBankingandAccountsManagementProcess

Any payment authorized by the Loan Process Team will be

effectedbythebankingandaccountsmanagementprocess.

Any collection from loans by the banking and accounts

managementprocessiscommunicatedtotheloanprocessteam

timely.

Stamp duty payments are collected from customer and

communicatedtimelytotheLoanProcessTeam

Insurancerenewalpaymentsenquiredbytheloanprocessteam

willbeeffectedbytheBankingprocessteam.

Recording errors will be reconciled by the two process teams

timely.

27
11.2RelationshipwithInformationTechnologyService(ITS)

Theloanprocessteamwillworkcloselywiththe(ITS)Processto:

Developandmaintainanuptodateinformationsystem.

The ITS process will install and maintain all the necessary ICT

hardwareandsoftwarefortheuseoftheloanprocessteam

The ITS process will collaborate in the need for identification

andtrainingoftheteammembers.

11.3RelationshipwiththeResearchProcess

Theresearchunitwillavailthenecessarydataandinformation

including project costing parameters for the use of the process

Team

Teamgivesfeedbackonactualprojectfollowupfindings.

The Loan Process Team may initiate bankable projects and

forwardtotheresearchprocess.

11.4RelationshipwithRiskManagementProcess

Theriskmanagementunitwillprovideuptodateriskgrading

guidelinesandformatstotheprocessTeam

TheriskmanagementunitwillprovidetheprocessTeamwith

up to date early warning triggers, loan policy and portfolio

concentrationreports

11.5RelationshipwiththeLoanApprovalTeam

Proposalsonnewloans,expansionloans,additionalloans,loan

rescheduling and other project rehabilitation measures need to

beapprovedbytheapprovalteambeforetheyareimplemented

28
 Theprocessteampresentsclearandcompleteproposalsforthe

deliberationanddecisionoftheApprovalTeam

The Approval team delivers a clear and timely decision for

subsequentactionoftheprocessteam

11.6 RelationshipwithExecutiveManagementTeam

The Executive Management Team of the Bank approves plan

and budget, training and development and resources

requirementoftheProcessTeam.

The Executive Management Team of the Bank approves

proposalforforeclosureaction

11.7 RelationshipwithTransportServicesProcess

The transportservicesprocess provides the processTeam with

transportation services with priority over the requests of other

processesandunitsoftheBank.

TheprocessTeamshalllogerequestsinduetimeforthesmooth

allocationofservicesbytheTransportservicesprocess.

11.8RelationshipwithHumanResourcesManagementUnit

The Human Resources Management Unit of the Bank assigns

qualifiedpersonneltotheprocessTeambasedontheenquiryof

theteam.

The Process Team informs the HRM Unit the need for

replacement of released, deceased, transferred, promoted,

demoted or fired staff with the necessary specification for

replacement.

29
 Placementrequestforunfilledpostsarealsoundertakenbythe

HRMunitbasedontherequestoftheprocessteam.

Requestfortheassignmentofanincumbentforanewlycreated

postshallbelodgedtotheHRMunitafterapprovalofthepost

byexecutivemanagementteam.

Request for training by the loan process team is facilitated by

HRMunit

11.9RelationshipwithLegalAdvisoryUnit

The legal advisory unit provides legal advices to the process

teambasedontheenquiryoftheteam

11.10RelationshipwithCustomersandStakeholders

Theloanprocessteamcommunicateswithcustomersthrough

thecontactperson.

Case teams, through process manager conduct daytoday

communications with internal organizational units and other

processteams.

Communicationoftheprocessteamwithotherstakeholdersis

effected through the process manager. In this regard, the

process manager serves as the contact person and the liaison

personoftheteamingeneral.

XII. Team Facility Requirements

Therequiredresourcesarereadilyavailablefortheteamtoachieveadesired

result. The major facility requirements that are important to ease the

operationoftheteaminclude:

OfficeequipmentandFurniture

30
 Computers; Desk tops for individual officers and two laptops for each

caseteam,whichcanbeusedforfieldworkandoneforProcessOwner.

Convenientofficelayoutandsyndicateroom.

Provisionofcustomerentertainmentservices.

Accessforinternet,telephoneandlibraryservice

XIII. Team Values and Beliefs

Tofacilitatethesmoothoperationoftheteam,theteamneedstoincorporate

thefollowingvaluesinteamsoperation.

Customer Orientation (Customer Satisfaction): - The members of the

team have to realize and work towards offering the services that

customers expect from the Bank in the most efficient and effective way

underthegivenworkingenvironmentandthetechnologyathand.They

havetoputcustomerforfrontandfocustowardsthoseactivitiesthatadd

valuetotheBankscustomers.Accordingly,theTeam:

Valuescustomersopinionandsuggestions

Acknowledge that customers are the ones who ultimately pay the

workforceandhence,customersarekings

Learning Organization: The team members have to believe that

creativity and innovation is the cornerstone for the Bank to gain

competitiveadvantage.Tothiseffect:

Newideasareencouraged&rewarded.

31
 Feedbacksoncurrentoperations,successesandfailuresareviewed

aslearningopportunities.

Everyoneisasourceofusefulideas

Ethical Consideration: The team realizes that honesty (trustfulness),

reliability; fairness and accountability are the bases for success and are

upheldasvitalassets.Inthisregard:

Everymemberwillstrictlyupholdthehighestethicalstandard

All members of the Loan Process understand the Banks policy

concerningethicalbehaviorandactivelyimplementit.

Honesty (truthfulness) and integrity are among the ethical

principles and the team has to be empowered for decision and be

accountableforallitsdeed.

Teamwork(Teamspirit): TheBankasawholeandtheinparticularare

committedtoworktogetherasteammembershavingcommongoals,and

hencerealizethebenefitofsynergy.Hence;

Individualparticipationandcontributioninateamareencouraged.

New entrants to the team are supported through sharing

information,experienceandsocializationintheteam.

Due attention (regard) is given in supporting and collaborating

withotherteammemberstoachieveorganizationalgoals.

32
 Allteammembersareputtheirefforttowardsfortheachievement

ofonecommongoali.e.theoutcomeoftheprocess

There shall be strong sense of ownership to the output (result) of

theteam.

Human Resource Development: The Bank and the team realize that

humanresourceisthevitalassetsoftheBank,andhence,propertraining

and development of human resource enables the Bank to enhance

operationalefficiency,organizationalcommitmentandgoalachievement.

Proper human resource development helps to promote

organizationalgrowth.AstheBankgrows,thehumanresourcewill

berewardedandencouragedforfurtherachievement.

Currently human resource is the core competence of the Bank

therefore,ithastobenurturedandfurtherstrengthen.

OrganizationalGrowth: - ThegrowthoftheBankisbaseforthegrowth

ofindividualstaffanditscommunity.Therefore,theentireworkforcesof

the Bank are committed to realize its mission and fulfill the countrys

development objective. Moreover, the team should exert efforts to meet

thesustainabilityobjectiveoftheBank.

Environmental Concern: - The Nations economic development and

environmental protection go hand in hand. Therefore, project financing

33
 decisions would take into account the impact of any project on

environment and society. As such the Team will provide loans to

environmentalfriendlyprojectsasmuchaspossible.

Responsiveness (Time Orientation): - Customers require prompt

response for their queries and the Bank pays for the time an employee

work.Moreover,timelydeliveryofservicetocustomerswillincreasetheir

satisfaction.Therefore,theBankwillgivedueattentionfortime.

Quality Service (Quality Orientation): Quality is the Banks concern.

TheBankstrivestoprovidequalityservicetoitsesteemedcustomers.The

Bank fulfills this responsibility by approving viable loans that will

contributeforthecountrysdevelopmenteffort.

Uniform: Members shall wear uniforms during office hour as a means

foridentificationandimageoftheteamaswellastheBank.

XIV. Amendment and Approval to Team Charter

ThisCharterissubjectforrevisiondependingonthechangeoncircumstances

andteamssituation.Proposalonchangetoteamchartercanbeidentifiedand

presentedforconsiderationbyanycaseteammembersorprocessownerand

theexecutivemanagementwillapproveit.Anyteammemberwillbeguided

bythischarterwhilehe/sheisoperatingintheteam.

34
XV. Team Agreement Declaration

We, members of the , understand the content of the charter, approve as our

teamscharterandoperatingplan,andagreetobeheldmutuallyaccountablefor

adherence to the plan/charter. The evidence of agreement is reflected by our

signatureaffixedbelow.

Membersname:Signature:

Date:

35