 History
of Demir Bank |
Demir Kyrgyz International Bank (DKIB) is the first
international commercial bank in the Kyrgyz Republic.
The bank was established in Bishkek under the laws
of the Kyrgyz Republic with paid-in capital of US
$3,000,000 (about 54 million Kyrgyz soms) and received
all banking licenses on May 02, 1997. The official
opening ceremony of the bank was held on May 28,
1997 with participation of President of the Kyrgyz
Republic - Mr. Askar Akaev.
The Shareholder's structure of DKIB is 100% international.
The shareholders of DKIB are the largest international
financial institutions taking active participation
in investment and development of Kyrgyzstan.
As of March 31, 2002 the shareholders structure
of DKIB is as follows:
International Finance Corporation (World Bank Group)
15%
European Bank for Reconstruction and Development
15%
Savings Deposits Insurance Fund, Turkey (Governmental
Agency) 70%
Total: 100%
Table
| Activities
and Products |
At present DKIB is among the three top banks in
the Kyrgyz banking sector and due to its strong
shareholders and capital structure having a major
impact in the market.
Since its establishment, DKIB is a primary dealer
of the National Bank of the Kyrgyz Republic operating
in Securities and Foreign Exchange markets. In the
meantime, DKIB is the most active participant of
interbank money market and efficiently introduces
new types of banking treasury products into Kyrgyz
financial market.
Highly qualified staff, a wide range of banking
services at international standard allows the Bank
to provide such services as trade finance, import
and export letters of credit, letters of guarantee
and performance bonds, foreign exchange operations,
and international money transfers. DKIB's Letters
of Credit and Letters of Guarantee facilities are
well recognized by the most of international financial
institutions. In addition, in August 2000 EBRD had
approved an uncommitted Trade Facilitation Facility
of up to US$1 million in favor of DKIB. EBRD Trade
Facilitation Program is aimed to develop utilization
of the trade products and other trade instruments
to support the manufacture, installation and finance
of goods (including capital goods), general contracting
work, shipbuilding and construction, etc. For the
five years of operations DKIB built-up worldwide
correspondents network.
Internationally, DKIB established correspondent
relationship with 40 well-known commercial banks
all around the world, opened and maintaining correspondent
accounts with 10 banks: in New York (CITIBANK N.A.
and American Express Bank Ltd.), in Frankfurt-am-Main
(Commerzbank AG), in Moscow (GarantiBankMoscow),
in Almaty (Almaty Merchant Bank, Demir Kazakhstan
Bank, Halyk Savings Bank of Kazakhstan), in Bucharest
(Demir Romania SA), in Rotterdam (Demir-Halk Bank
N.V.) and in Istanbul (HSBC Bank AS).
 In
1999 DKIB had become a member of SWIFT - the most
reliable and secured telecommunication banking system
all over the world. DKIB was the 1st bank in Kyrgyzstan
entered SWIFT as a full member.
At the current stage of its activity DKIB is strongly
engaged into customers account services, inter-bank
foreign exchange market, extension of commercial
loans to reliable corporate clients, providing of
trade finance product. The bank further targeted
its active involvement into and expansion of "retail
banking", small and medium financing, which
will consist of the package of banking services
and products, including attraction of individual
time deposits, loans to individual customers, credit
& debit plastic cards, AT Machines, etc.
Demir Kyrgyz International Bank continues to be
one of the leaders in the banking system with sound
shareholders structure and positive financial results.
| Results
|
The development of Demir Kyrgyz International Bank
(DKIB) in the year 2001 was marked by further increase
in the amount of transactions, extension of the
range of services and diversification of activities.
The Bank remains liquidity focused.
For the year 2001, the bank continued showing stable
growth of its assets. The total assets of the bank
as of December 31, 2001 increased by 31% since year-end
2000 and reached KGS 625 million. DKIB became the
second bank in terms of assets size. The amount
of funds in cash and cash equivalents increased
from KGS 59 million to KGS 139 million indicating
high liquidity of the Banks assets.
In 2001 DKIB continued extension on a selective
basis credit facilities to trustworthy customers,
such as cash loans, letters of guarantees and letters
of credit. DKIB's credit portfolio as of December
31, 2001 reached KGS 6.6 million (about USD138 thousand).
Credit facilities were extended for working capital
financing, trade and term financing in the areas
of housing, hotel and construction business and
export and import financing. During year 2001 DKIB
extended 22 loans to companies and individuals for
the total amount of KGS 12.3 million (in USD equivalent
- 257 thousand). The loans were granted for the
purpose of construction works, working capital financing,
SME lending and for consumer purposes. In 2001 DKIB
issued five Letters of Guarantee for the total amount
of KGS 13.3 million (USD 278 thousand). There had
been issued the Letters of Guarantee to secure the
following transactions of the DKIB's customers:
dwellings purchase, vehicle purchase, food wheat
supply, rehabilitation of the road in Osh and Dzhalal-Abad,
etc. DKIB received three Letters of Guarantee for
the total amount of KGS 14.4 (USD 300 thousand)
issued in favor of bank's customers to secure their
transactions. DKIB issued and received for advising
six import and export Letters of Credit for the
total amount of USD 311,157.00, which have been
issued to finance purchase and selling of the following
products: electric equipment, electrolytic coppers,
granulated preform and cotton. |
The development of the
loan portfolio of DKIB is influenced by changes
in economies of both Kyrgyzstan and Turkey, showing
decrease of the loan portfolio from KGS 2.7 million
at the year-end of 2000 to KGS 2 million in 2001.
The decrease mainly reflects credit risk cautiousness
and conservative policy of the bank and decreased
investment appetite of the major Turkish corporate
companies in Kyrgyzstan.
DKIB is traditionally active in securities market.
Being the first foreign bank started its operations
in Kyrgyzstan, we continued these activities during
the year 2001 by investing into T-Bills and the
NBKR's notes. As of December 31, 2001 the securities
portfolio was KGS 6.2 million. The active Treasury
approach to promotion of enhanced customer products
helps establishing contacts with new counterparts
in interbank market and increase the volume of business
with existing ones.
Due to successful operations for the last five years
DKIB built up a solid customers base and the total
number of both individual and corporate customers
as of December 31, 2001 reached 4.217, including
802 corporate customers, such as local and foreign
industrial companies, joint ventures, Embassies,
IFI's international projects and public institutions,
etc. By the end of 2001 deposit base totaled 461.4
million soms (about $9,6 mm), which is by 62% more
in comparison with the previous year. Customer deposits
comprised 77 percent of the total liabilities and
amounted to KGS 428 million as of year-end 2001.
The total amount of attracted resources (both short-term
and long-term, including deposit base) grew by 56
percent as of year-end 2001, reaching KGS 537 million
compared to KGS 344 million in year-end 2000.
Net Profit was KGS 1,753 thousand as of the end
of the year 2001. Commission and fee-based income
remained the major component of the Bank's profit,
reaching KGS 53 million.
Internationally, the Bank continuously strengthens
direct correspondent relations with leading commercial
banks, adding new banking relationships to the
existing ones. DKIB increased its correspondent
network, activated business and established correspondent
relationship with 40 banks, opened correspondent
accounts with 10 banks.
Retail banking remains one of the major activities
of the Bank. At the current stage DKIB is strongly
engaged into customers account services, inter-bank
foreign exchange market, extension of commercial
loans to reliable corporate clients, providing
of trade finance product. The bank further targeted
its active involvement into and expansion of "retail
banking", small and medium financing, which
will consist of the package of banking services
and products, including attraction of individual
time deposits, loans to individual customers,
credit & debit plastic cards, AT Machines,
etc.
| Financial
highlights |
Table
| Awards
of Demir Kyrgyz International Bank |
In July 1998, Euromoney has announced Demir Kyrgyz
International Bank as "The Best Foreign bank
in the country".
In July 1999, Euromoney selected Demir Kyrgyz
International Bank as "The Best Foreign bank
in the country for the second consecutive year"
describing DKIB as the "…the only Kyrgyz
bank that has emerged from the turmoil of the
past year with its balance sheet more or less
intact and is the only player in the market that
attracts any foreign business."
In July 2000, Euromoney selected Demir Kyrgyz
International Bank as "The Best Foreign bank
in the country" stating that DKIB "…is
held up as an example for the rest of the Kyrgyz
Republic's banking sector. Now one of the largest
banks in the country it employs around 78 people…the
bank has just completed the first stage of its
IT investment which involved upgrading systems
and automating the bank's processing operations…"
Recognizing the Bank's role and achievements,
Euromoney awarded Demir Kyrgyz International Bank
as "The Best Bank in the country for the
year 2001."
Euromoney noted to this award that: "Out
of the 42% of money in circulation within the banking
system, most is deposited with Demir Kyrgyz International
Bank (DKIB), which wins the best bank award again
this year. DKIB was founded in 1997 by a consortium
of international sponsors to inject some confidence
into the economy. Given the limited retail opportunities,
it has concentrated on the corporate side, mainly
through fee and commission based-business because
lending is perceived to be too risky."
Euromoney magazine is the world's most authoritative
source of information on trends in international
banking and capital markets, selects the world's
most able banks across a range of countries and
disciplines and awards for EXCELLENCE.
| List of
Correspondent Banks |
Table
1
Table
2
| Products |
Demir Kyrgyz International Bank concentrates on
developing efficient commercial banking services
for a wide range of both local and foreign corporations
as well as for international financial institutions
operating and represented in the Kyrgyz Republic.
Demir Kyrgyz International Bank also offers a full
range of deposit account services to the local and
foreign communities, including the availability
of safe deposit boxes of international standard.
The Bank has the capacity to handle locally all
manners of international transactions and funds
transfer, in all major currencies, on a routine
basis.
Below, there is a list of main DKIB services available
here, in the Kyrgyz Republic:
Current accounts servicing, such as an opening and
maintenance of multi-currency operations accounts
· FCY and LCY cash withdrawals
· Clean export/import collections
· Documentary export/import collections
· Documentary export/import credits
· Letters of Guarantee
· FCY and LCY money transfers via SWIFT
· General and account transaction reference
letters
· Account statements on daily, weekly and
monthly base
· Additional information/amendment
· Safe boxes
· Travelers' check
· Encashment from plastic cards
· Check-book
· USD/Som cash loans
· FCY and LCY Time deposits
· Payroll service
· Cash collection
 |
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