NATIONAL BANK OF PAKISTAN
COMMERCIAL BANKING
4/7/2010
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ORGAINZTIONAL STRUCTURE OF NBP |
COMMERCIAL COMMER CIAL BANKING BANKIN G ORGANIZATIONAL STRUCTURE OF NATIONAL BANK OF PAKISTAN
T O : M R . N A D EEM
A LT A F
FR O M : M . M O B A S H A R A L I
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A S IF M E H M O O D
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M U Z A M M A L H U S S A IN
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IM R A N K H A N
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SA L M A N -U L-M U ST A FA
0 8 11 7 0 4 4
IR F A N M E H M O O D
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MBA (BA (BANKI NKING NG & FI FINAN NANCE CE)) SECT SE CTIO ION NA
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EXECUTIVE SUMMARY
This project is about the organizational structure of NATIONAL BANK OF PAKISTAN widely known as NBP. In this project we visit to the RHQ SIALKOT and got the information about their working Groups and their under divisions of NBP in Pakistan. This project gives you the idea about departments of the NBP as well as how and what are the functions performed by these departments. According to our knowledge and information gathered about departments is summarized and possibly explained where necessary and an organizational chart also developed in this regard. We also included in it, the rights and limitations against sanctioning of loan to consumer, firm (partnership), & Corporation. With the figures explained according to each level of hier archy.
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CHAIRMAN & PRESIDENT
BOARD, CORP. AFFAIRS, PRIVATE & OPERAT. COMMITEE
Credit/Risk
Operations
Audit &
Compliance
HR Manag. &
Management
Group
Inspection
Group
Admin.
Group
Gorup
Group
Commercial
Treasury
Special Asset
Information
& Retail
Management
Management
Technology
Investment
Banking Gro.
Group
Group
Group
Banking Group
Cash Manag. &
Overseas
Islamic
Trade Finance
Banking
Banking
Group
Group
Group
Corporate &
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Board, Corp.Affairs, Privat. & Operat. Commitee
Credit Committee, Shares, Admin., Comp. & MIS
Credit & Risk Management Group
Risk Review &
Credit Management
Student Loan
Corp., Commercial,
Industrial Research
Service & Co-
Scheme
Agri., & Consumer
Division
ordination
Credit Monitoring
Credit
Credit policy/ procedure & SME Credit
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Corporate & Investment Banking Group
Corporate &
Corporate &
Corporate &
Investment Banking,
Investment Banking,
Investment Banking,
Karachi
Lahore
Islamabad
Equities
Operations Group
Treasury Settlement
Logistic Support &
Engineering (North
Core Banking
Security
& South)
Application Support
Comeseter Services & Govt. Business
Retail Products Support
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Audit & Inspection Group
Administration Budget & Training
Monitoring &
Internal Audit &
EDP Audit &
Evaluation
Inspection
Automation
System & Secretarial Support
Regional Audit offices
HR Management & Admin Group
HR & Organizational Development
HR- Policies & Projects Division
Training Division
Staff Loan &
Employees Benefits
Welfare Division
Division
Personnel & Ind. Relation Division
Recruitment & Placement Division
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Commercial & Retail Banking Group
Agriculture Division / Administration
SME Division (Lahore)
CMU
Commercial Banking
PR & Marketing
Credit/ Retail/ Collection& Recovery
Karobar
Treasury Management Group
Interbank Trading
Money Market & Securities
Money Market Sales
Equity & Investment / NIT Trustee
Foreign Exchange
Financial Control Division
Corporate Sales
Taxation
FX Sales
Budget & Business Review
SBP Returns
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Special Assets Management Group
SAMG North
SAMG South
SAMGHead Office
Information Technology Group
Infrastructure & Procurement Unit
System Development
I.T. Administration
Security Documentation & Q.A
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Overseas Banking Group
Funds Management
Islamic Banking Group
Business Development
Funds & Finance
Compliance Group
SBP Inspection
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Explanation of work performed by the GOURPS of NBP. Corporate & Investment Banking Group: •
The C & IBG unit has been structured to provide adequate focus and professional approach towards enhancing NBP’s share of business within existing and more importantly new business from larger corporate customers
•
With complex product structure according to various markets, more emphasis on relationship management and provision of a high quality and responsive customer service, C & IBG expected to double its portfolios for the next coming years
•
CIBG’s present roles includes: §
Corporate and Investment Banking
§
Transaction structuring
§
Tailor made solution for corporate customers
§
Manage existing equity portfolios
Commercial & Retail Banking Group: •
C & RBG is the largest business group within NBP offering a wide range of services, it includes following services:
•
•
§
Mark-up based asset and liability products
§
Fee based products and services
For the risk management in these services it has: §
Standard operating procedures
§
Management information system
§
Verifications
§
Collections and recoveries
§
Write offs and write backs
It deliver services through Regional offices, Branch Network, & Sales Teams
Treasury Management Group: National bank treasury is currently regarded as a market leader in both foreign exchange and rupee denominated products products because of its emphasis em phasis on service quality. We offer • •
•
Narrowest bid / offer spread and quickest on line quotes Customized solutions to minimize risk and optimize returns as per the needs and circumstances circumstances of the clients Focus on building sustained and long term relationship with institutional, corporate and retail clients.
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•
Local presence across the nation as well as internationally.
Special Asset Management Group: • •
•
SAMG was established in NBP to reduce Non-Performing Loans Portfolios Credit risk and review process complements the credit classification process, which takes broader judgment factors into account, including collectability and loss probabilities, and forms the basis for remedial management processes utilized by the Bank SAMG intends to use specialized techniques and negotiations skills to recover maximum possible amount from the Non-Performing Loans (NPLs) in accordance with existing policies of the Bank, e.g. e.g . rescheduling or restructuring, through court etc.
Overseas Operations: •
NBP overseas operations are segregated into developed and developing countries for synergy of operating environment Dev eloped Countries Americas Region European Region Far East Region Cario office in Middle Eastern Region
Developing Countries Afghanistan operations Central Asian Region Middle East, Africa & South Asia
Islamic Banking Operations: •
Islamic Banking is providing currently the Following Functions: • Ijarah Murabaha • Mudaraba and Musharaka • Liability Products governed by Islamic Laws a nd principles •
Cash Management & Trade Finance Services Group: •
•
It is performing the following objectives under NBP: o Increase target market share in cash management services o Offer new cash management solutions according to trend o Further exploit treasury lines for the bank o Reduce services turnaround time and improve quality Its services includes: o Under Cash Management Account Account maintenance ma intenance and reconciliation • Home remittances •
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International clearing services Tax collection • • Payroll management Under Trade Finance Services • Export bills collection and discounting Import reimbursement services • L/C advising, confirmation and discounting d iscounting • • Funds transfer service for other banks Manitenance of Nostro and Vostro balances • •
o
Operations Group: •
•
•
The team of operation groups is working to change the face of this Bank by way of improving its physical outlook, effective implementation of its s ystems & controls and in the quality of service provided to its customers. To change the general perception held towards the Group of a back office and an expense incurring Group which actually is an income generating engine Aiming at ‘Zero Complaints’ through application of sophisticated sophisticated database.
Information Technology Group: IT focuses on the followings: •
•
•
•
Existing IT infrastructure with planned upgrade in various phases for hardware, software, networking and communication infrastructure Assisting business units to achieve and upgrade existing information system requirements through software and system upgrades Ensure adequate level of resource deployment through hiring specialists and outsourcing for critical support function within IT group Ensure business continuity and disaster recovery planning with implementation of policies to manage IT risk.
Human Resource Management Group: HR Group focuses on the followings: •
•
•
Optimum staffing level will be determined based on specific personnel needs of the business groups for undertaking business development and develop a strong middle management tier. Compensation structure will be revised to market comparable salaries for all key positions responsible for account solicitation, product development and relationship mangers Rationalization of existing staff based on skill set, e xperience and career aspirations
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•
•
Hire professionals with specialized areas of expertise for undertaking complex product development and implementation Continuous training based on industry dynamics and changing customer needs.
Compliance Group: Compliance Group focuses on the followings: • •
•
•
•
Implementation of Basel II principles for managing and mitigating organizational risk Reporting irregulations and exceptions, identified by audit & inspection group and by regional compliance functionaries, on monthly basis to the relevant group heads or to the president if required Consolidation of regional compliance reviews for submission to the relevant authority for review Progress reports related to different functions within the organization are submitted to relevant authorities on a periodic basis Coordinate with regulatory authorities and external auditors for compliance related issues
Credit Management Group: Credit Management Group focuses and performing effectively the followings: • • • • • • • • •
All credit related functions Documentation Sanction and approval (see Figures at the end) Policy formulation / dissemination Credit monitoring Post disbursement monitoring Portfolio management Remedial management Credit management services
Audit and Inspection Group: The Audit Commission, an independent public body, carries out various inspections of how the Council conducts its affairs and publishes its findings in reports. In particular inspection concentrates on our accounts, performance management and financial aspects of corporate governance (e.g. how well NBP prevent and detect fraud and corruption). NBP also carry out internal audit to e nsure that statutory financial responsibilities are achieved, and to assist managers in the effective delivery of services, seeking to ensure value for money. NBP maintain close cooperation with the external auditor to reduce overall audit costs.
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To Exercise different functions, management has powers as well as restrictions to act and behave according to the instructions provided and take into account when these instructions were amended. To check the proper implementation BOARD has made a committee named as
STEERING COMMITTEE that will check and respond to BOARD. The list of powers and limits is
given as follows:
Powers 1. The powers powers are to be exercised exercised against against all types of acceptable acceptable securities securities and collaterals within the parameters of Prudential Regulations, Banking Laws, Companies Act, Standard Procedures Procedures manual and Bank’s Policies issued from time t o time. 2. The powers powers are subje subject ct to SBP restrict restrictions, ions, policies policies,, and regulatio regulations ns in vogue vogue and amended from time to time. 3. The presiden presidentt may delegate delegate higher higher limit to an individu individual al or Regional Regional Managemen Managementt Committee by name and the powers so delegated. 4. These powers powers are are subje subject ct to utilizat utilization ion of CREDIT & RISK GROUP and COMMERCIAL AND RETAIL BANKING GROUP , CORPORATE & INVESTMENT BANKING GROUP as
explained in the figures (1,2,3,4,5,&,6) given below.
Limitations 1. The presiden presidentt is empowered empowered to exercise exercise unlimited unlimited financial financial powers powers vide vide BOD decision. decision. 2. Powers Powers and amount amountss represent represented ed in the next next figures figures only for a time time limit unless unless otherwise specified. 3. All the the sanctioning sanctioning amoun amounts ts provided provided in the the following following figures figures are annual annual.. 4. All purchas purchases es to be strictly strictly as per per bank’s bank’s rules and and the Procureme Procurement nt policy policy of NBP 5. To check check expenses expenses are under under budget, budget, Regional Regional Management Management Committee Committee on monthl monthly y basis review all the expenses and a statement thereof to be sent to the Chief of Operations Group, Head Office.
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Figure 1: Against Liquid Securities DSCs, SSCs, BONDS, TDRs, FDRs, etc. CUSTO USTOME MER R TYPE TYPE LEV LEVEL
Limi Limite ted d Compa ompany ny
AUT AUTORIT ORITY Y
Fund Funded ed
Non Non Fund Funded ed
Non Non Fund Funded ed
Fund Funded ed
Non Non Fund Funded ed
Ind Indivi ividual dual (Con (Consu sume mer) r) Fund Funded ed
Non Non Fund Funded ed
The board of directors in its meeting, resolved t hat all the authority for credit approvals is delegated t o the credit. However, Credit Proposals that fall within the purview of t he Board as per directives of SBPshall continue to be put up to the Board.
CREDIT COMMITEE
SEVP/EVP/Group Chief Risk Mangement
200.00
Unlimited
125.00
Unlimited
75.00
Unlimited
10.00
Unlimited
SEVP
200.00
300.00
125.00
250.00
75.00
150.00
10.00
20.00
EVP
200.00
300.00
120.00
240.00
60.00
120.00
7.50
15.00
125.00
Unlimited
100.00
Unlimited
50.00
Unlimited
5.00
Unlimited
EVP
75.00
150.00
60.00
120.00
25.00
50.00
3.00
6.00
SVP
45.00
90.00
30.00
60.00
20.00
40.00
2.00
4.00
VP
30.00
60.00
20.00
40.00
15.00
30.00
1.00
2.00
AVP
20.00
40.00
15.00
30.00
10.00
20.00
0.50
1.00
Group Chief
N O I G E R
Fund Funded ed
Indi Indiv vidua iduall (Bus (Busii. & Ind Ind.)
Unlimited (Within regulatory parameters)
BOD E C I F F O D A E H
Firm Firm (Par (Parte tene ners rshi hip) p)
REGIONAL MANAGEMENT COMMITEE REGIONAL CHIEF Powers to be excercised jointly by RBC and RRMC
Jointly with Risk Manger, wherever available
MANAGER H C N A R B
•
SVP
90.00
Unlimited
30.00
Unlimited
20.00
Unlimited
2.00
Unlimited
VP
60.00
Unlimited
20.00
Unlimited
15.00
Unlimited
1.00
Unlimited
AVP
40.00
Unlimited
15.00
Unlimited
10.00
Unlimited
0.50
Unlimited
OG-I to OG-II
20.00
Unlimited
4.00
Unlimited
2.00
Unlimited
0.50
Unlimited
Credit committee will also have authority to approve / confirm actions of the HO, REGIONS, Branch.
•
For SMEs powers granted for Commercial Lending will continue to be exercised, until such time specific powers based on products to be introduced are determined and announced by Commercial Banking Group / Risk Management Group / Retail Banking Group.
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Figure 2: Against Pledge Cotton, paddy, Rice, Sugar, Wheat, Pulses, Manufactured Goods, Products, Equipment, etc. Rs. In Million
(For Industry, Business & Trade only) CUSTOMER T YP YPE LEVEL
Limited Compa ny ny Non Funded Funded
AUTORITY
Non Funded
SEVP/EVP/Group Chief Risk Mangement
150.00
300.00
100.00
200.00
75.00
150.00
SEVP
150.00
300.00
100.00
200.00
75.00
150.00
EVP
100.00
200.00
75.00
150.00
40.00
80.00
REGIONAL MANAGEMENT COMMITEE
80.00
160.00
50.00
100.00
30.00
60.00
EVP
50.00
100.00
40.00
80.00
20.00
40.00
SVP
30.00
60.00 60.00
20.00
40.00
10.00 10.00
20.00
VP
25.00
50.00
15.00
30.00
5.00
10.00
AVP
15.00
20.00
10.00
20.00
5.00
10.00
REGIONAL CHIEF Powers to be excercised jointly by RBC and RRMC
Jointly with Risk Manger, wherever available
MANAGER H C N A R B
•
Funded
The board of directors in its meeting, res olved that all the authority for credit approvals is delegated to the credit. However, Credit Proposals that fal l within the purview of the Board as per directives of SBPshall continue to be put up to the Board.
CREDIT COMMITEE
Group Chief
N O I G E R
Individual (B us us i.i. & Ind.)
Unlimited (Within regulatory parameters)
BOD E C I F F O D A E H
Firm (Partene rs rship) Non Funded Funded
SVP
30.00
60.00 60.00
20.00
40.00
10.00 10.00
20.00
VP
20.00
40.00
10.00
20.00
3.00
6.00
AVP
0.00
0.00 0.00
0.00
0.00
0.00 0.00
0.00
OG-I to OG-II
0.00
0.00 0.00
0.00
0.00
0.00 0.00
0.00
Credit committee will also have authority to approve / confirm actions of the HO, REGIONS, Branch.
•
For SMEs powers granted for Commercial Lending will continue to be exercised, until such time specific powers based on products to be introduced are determined and announced by Commercial Banking Group / Risk Management Group / Retail Banking Group.
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Figure 3: Against Mortgage of Immovable property including Fixed assets of Industry. Rs. In Million
(For Industry only) CUSTOMER T YP YPE LEVEL
Limite d Compa ny ny Non Funded Funded
AUTORITY
The board of directors in its meeting, resolved t hat all the authority for credit approvals is delegated to the credit. Howe ver, Credit Proposals that fall within the purview of the Board as per directives of SBPshall continue to be put up to the Board.
CREDIT COMMITEE
SEVP/EVP/Group Chief Risk Mangement
100.00
200.00
70.00
140.00
35.00
70.00
SEVP
100.00
200.00
70.00
140.00
35.00
70.00
EVP
80.00
160.00
50.00
100.00
30.00
60.00
80.00
160.00
50.00
100.00
30.00
6.00
EVP
40.00
80.00
35.00
70.00
15.00
30.00
SVP
25.00
50.00
15.00 15.00
30.00
5.00
10.00
VP
20.00
40.00
10.00 10.00
20.00
5.00
10.00
AVP
10.00
20.00
5.00
10.00
2.50
5.00
Group Chief
N O I G E R
REGIONAL MANAGEMENT COMMITEE REGIONAL CHIEF Powers to be excercised jointly by RBC and RRMC
Jointly with Risk Manger, wherever available
MANAGER H C N A R B
•
Individual (B us usi. & Ind.) Non Funded Funded
Unlimited (Within regulatory parameters)
BOD E C I F F O D A E H
F ir irm (Partenership) Non Funded Funded
SVP
25.00
50.00
15.00 15.00
30.00
5.00
10.00
VP
20.00
40.00
10.00 10.00
20.00
5.00
10.00
AVP
10.00
20.00
5.00
10.00
2.50
5.00
OG-I to OG-II
2.50
5.00
1.00
2.00
0.50
1.00
Credit committee will also have authority to approve / confirm actions of the HO, REGIONS, Branch.
•
For SMEs powers granted for Commercial Lending will continue to be exercised, until such time specific powers based on products to be introduced are determined and announced by Commercial Banking Group / Risk Management Group / Retail Banking Group.
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Figure 4: Against Other Securities Purchase of inland Bills, Purchase of or Finance against Bank Drafts & Payment Orders, Foreign Bills Purchased, Negotiation of Export Documents.
(For Industry Only)
Rs. In Million purchase of Bank Instruments (Pay order/Draft)
FACILITY
Limited Co. LEVEL
Firm
AUTORITY
CREDIT COMMITEE
Limited Co.
Firm
Individual (Busi. & Ind.)
Limited Co.
Firm
Individual (Busi. & Ind.)
The board of directors in its meeting, resolved t hat all the authority for credit approvals is delegated t o the credit. However, Credit Proposals that fall within the purview of t he Board as per directives of SBPshall continue to be put u p to the Board.
SEVP/EVP/Group Chief Risk Mangement
150.00
75.00
35.00
50.00
30.00
25.00
50.00
25.00
10.00
SEVP
150.00
75.00
35.00
50.00
30.00
25.00
50.00
25.00
10.00
EVP
100.00
50.00
25.00
40.00
25.00
20.00
40.00
20.00
7.50
55.00
30.00
15.00
35.00
20.00
15.00
35.00
15.00
5.00
EVP
40.00
20.00
5.00
25.00
10.00
5.00
20.00
5.00
3.00
SVP
20.00
15.00 15.00
5.00
15.00
5.00
2.00
15.00
5.00
2.00
VP
10.00
5.00
2.00
10.00
5.00
2.00
10.00
5.00
2.00
AVP
5.00
2.00
1.00
5.00
2.00
1.00
5.00
2.00
1.00
Group Chief
N O I G E R
Individual (Busi. & Ind.)
Purchase of Bills under firm contract with collateral security
Unlimited (Within regulatory parameters)
BOD E C I F F O D A E H
negotiaition of Export Documents
REGIONAL MANAGEMENT COMMITEE REGIONAL CHIEF Powers to be excercised jointly by RBC and RRMC
Jointly with Risk Manger, wherever available
MANAGER H C N A R B
•
SVP
20.00
15.00 15.00
5.00
15.00
5.00
2.00
15.00
5.00
2.00
VP
10.00
5.00
2.00
10.00
5.00
2.00
10.00
5.00
2.00
AVP
5.00
2.00
1.00
5.00
2.00
1.00
5.00
2.00
1.00
OG-I to OG-II
2.00
1.00
0.50
2.00
1.00
1.00
2.00
1.00
0.50
Credit committee will also have authority to approve / confirm actions of the HO, REGIONS, Branch.
•
For SMEs powers granted for Commercial Lending will continue to be exercised, until such time specific powers based on products to be introduced are determined and announced by Commercial Banking Group / Risk Management Group / Retail Banking Group.
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Figure 5: Consumer & Retail Financing and Financing to Small & Medium Enterprises
Rs. In Million SCHEME
LEVEL
Small & Me dium E nerprises Consumer & Retail Financing
AUTORITY
Funded
•
Funded
Non Funded
SEVP/EVP/Group Chief Risk Mangement
30.00
60.00
25.00
40.00
12.50
25.00
SEVP
30.00
60.00
25.00
40.00
12.50
25.00
EVP
30.00
60.00
25.00
40.00
12.50
25.00
25.00
45.00
20.00
35.00
10.00
25.00
EVP
15.00
30.00
10.00
20.00
5.00
10.00
SVP
10.00
20.00
5.00
10.00
3.00
6.00
VP
5.00
10.00
2.00
4.00
0.50
1.00
AVP
2.00
4.00
1.00
2.00
0.50
1.00
REGIONAL MANAGEMENT COMMITEE REGIONAL CHIEF Powers to be excercised jointly by RBC and RRMC
Jointly with Risk Manger, wherever available
MANAGER H C N A R B
Non Funded
The board of directors in its meeting, res olved that all the authority for credit approvals is delegated to the credit. However, Credit Proposals that fall within the p urview of the Board as per directives of SBPshall continue to be put up to the Board.
CREDIT COMMITEE
Group Chief
N O I G E R
Funded
Unlimited (Within regulatory parameters)
BOD E C I F F O D A E H
Non Funded
SVP
10.00
20.00
5.00
10.00
3.00
6.00
VP
5.00
10.00
2.00
4.00
0.50
1.00
AVP
2.00
4.00
1.00
2.00
0.50
1.00
OG-I to OG-II
1.00
2.00
1.00
2.00
Credit committee will also have authority to approve / confirm actions of the HO, REGIONS, Branch.
•
As per approved powers of Retail Banking Group by Board of Directors (Figure 6)
•
Definition of SME, Limits Securities and Pricing will be in accordance with Guidelines provided by SBP and Bank from time to time. This chart only represents the sanctioning authority.
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Figure 6: SANCTIONING POWERS – SECURED PRODUCTS
Rs. In Million Regional Office Level
Level Of Hierarchy
Head O ffice Level Sanctioning Powers
Level Of Hierarchy
Sanctioning Powers [Max]
Regional Business Chief / Regional Risk Management Chief
3.000
Product / Credit Analyst /Mortgages
1.500
Regional Management Team
5.000
Initiation Hea d
5.000
Credit Head - retail
7.500
Group Chief - Re Retail Banking Gr Group
15.000
Jointly by Groups Chief - RBG & RMG
25.000
To be signed by GC-RMG and one other cr edit committee me mber
35.000
credit committee
> 35.000
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HOW FOREIGN BANKS PENETRATE IN PAKISTAN
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Pakistan is a country that exports or imports many of the products made or required by it. Its export contribution to GDP is 14.1 billion (as decreased by the recent crises of power and suicidal attacks). Similarly its trend toward importing has been increased by the last years. Hence, in recent decades, international trade in goods and financial services has become increasingly important. To facilitate such trade, many banking institutions have also become international, because they found opportunity to break the circle of monopoly of the Government in different developing countries and to earn the above average profits, one of the countries is Pakistan. When foreign banks come into Pakistan, Government of Pakistan make many of the banks privatize, during Zia-ul-Haq leading, that were previously owned by the Government. Banks have have expanded internationally by by establishing foreign subsidiaries and and branches or by taking over established foreign banks. The internationalization of the banking sector has been spurred by the liberalization of financial markets worldwide. Developed and developing countries alike now increasingly allow banks to be foreign-owned and allow foreign entry on a national treatment basis. Financial liberalization of this kind proceeds, among other reasons, on the premise that the gains from foreign entry to the domestic banking system outweigh any losses. Several authors have addressed the potential benefits of foreign bank entry for the domestic economy in terms of better resource allocation and higher efficiency. Some writers specifically mentions that foreign banks may 1. Improve Improve the quality quality and availabilit availability y of financial financial services in the domestic domestic financ financial ial market market by increasing bank competition, and enabling the greater application of more modern banking skills and technology, 2. Serve to stimulate the the development development of the underlying underlying bank bank supervisory supervisory and and legal legal framework, and 3. Enhance Enhance a country’ country’ss access access to intern internation ational al capital. capital. Foreign ownership of banks is often thought to improve overall bank soundness, especially when the foreign parent banks belong to well-regulated financial systems that are themselves healthy. Such parent banks are expected to provide greater access to the capital and liquidity that bolster balance sheet strength, and to transfer to local banks the skills and technology that
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enhance risk management and internal controls. More broadly, foreign bank presence is expected to fortify emerging market financial systems by encouraging higher standards in auditing, accounting and disclosure, credit risk underwriting, and supervision opined that foreign banks improve the quality and availability of financial services in the domestic financial market by increasing bank competition, and enabling the application of more modern banking skills and technology.
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