 BACKGROUND
|
Immediately after the RPF ( Rwandese Patriotic
Front ) brought to an end the 1994 genocide, John
Nyombayire, Economist and former Professor of
Mathematics and Economics, who later became a
banker, regained the country of his ancestors
to take stock of what had become of the Commercial
Bank of Rwanda, (BCR), of which the Government
is a big shareholder
A DISHARTENING FINANCIAL SITUATION AT THE
RESUMPTION OF BANKING ACTIVITIES
In the confusion and disorder that followed the
war, the recovery of Rwanda's financial system
was a top priority for the new government. John
Nyombayire was the right man to take charge this
difficult task of revamping BCR, having been a
former hear of Union Zairoise de Banques both
in Kinshasa and Lubumbashi. The Société
Financière pour les Pays d'Outremer (SFOM)
= (BNP, BBL and the Dresdner Bank) were majority
foreign shareholders. At that same time, SFOM
and its partners had considerable shareholding
( 42,5 %) in BCR.
The BBL, of which was BCR's main pillar, immediately
appointed Mr. Nyombayire as its consultant with
the mission of taking stock of what remained of
this disaster stricken bank and draw up plans
for its closure.
A small team was hired, most of them Rwandans
who worked in the banking systems of either Burundi,
Uganda or Zaire, and who had regained their homeland.
The accounts and information system were a mess,
books of account scattered everywhere, archives
plundered, the Banking headquarters perforated
by artillery shells, a broken down telephone system,
vehicles looted, top banking executives and workers
either killed or in flight, and emptied coffers.
That is what our courageous banker and his team
found waiting for them.
But worse was in store for them, when some member
of the team visited the 13 up-country branches.
What remained of the buildings were either roofless
structures, or a few standing walls. The communication
equipment and machines were either looted or destroyed,
files and books of accounts torn and scattered
outside in the gardens, office equipment stolen,
etc.
That is the atmosphere in which the team began
its enormous task of making inventory. But far
from making plans for closure of the Bank, with
the help of government, together with its dynamic
team, set upon rebuilding and reopening of the
bank, and indispensable and important element,
a cog in the economic wheel of the country.
THE REOPENING HAS BEEN DIFFICULT BUT THERE WAS
HOPE
With two months behind compared to its competitor
(Banque de Kigali), Commercial Bank of Rwanda
opened its doors again to the public on December
15, 1994, and participated in the demonetization
of the old banknotes of 5000 and 1000 RWF at the
beginning of 1995.
During this first exercise, the small team of
bankers was encouraged by the loyalty exhibited
by the BCR customers who, instead of withdrawing
their deposits "en masse", demonstrated
their good intentions of continued cooperation.
Then started the heavy task of convincing foreign
shareholders not to close BCR, but to revamp it
even, although the slope was proving to be very
steep.
The October 1994 team, made of about 20 loyal
collaborators was soon enlarged to about 100 people.
In March 1995, the National Bank of Rwanda, introduced
for the first time, the liberalization of the
exchange market which authorized commercial banks
(two at the time) to manage their own exchange
position, to freely fix the exchange rates according
to market principles, to validate import and export
licenses and to open documentary credits (L/C's)
to be confirmed through their foreign correspondents.
This measure gave a real boost to the banks, which
saw it as a means to generate additional revenue
necessary to make their institutions profitable
once more, and to cover the losses of the recent
past, without forgetting to honour punctually
previous commitments despite the withdrawal of
external funds by the former managers.
Very soon, a third bank reopened its doors (BACAR)
and two new banks were created (BCDI and BANCOR)
in 1996.
Since the beginning of 1995, BCR had a clear policy
of helping the country on the road to (re-)development
by a careful policy of granting credits - despite
the fact that customers were not able to offer
solid securities or collaterals -, and the quotation
of foreign currency such as to create the stability
of rates ; the temptation was however high to
get the maximum of profit from the liberalization
of the exchange market.
In the past, BCR had a strong reputation among
UN Institutions, Embassies and NGOs whose confidence
it was imperative to regain. They were and still
are sources of foreign currency which Rwanda badly
needs for development. A Commercial policy in
favour of foreign currency contributors and also
in favour of investment and consumer goods importers
was put in place.
NOT ALL GOING IS SMOOTH IN HELPING IN THE DEVELOPMENT
OF THE COUNTRY
In the meantime, BCR has developed structures
to assist it play a part in all domains in helping
develop the country, in attracting customer deposits,
bank lending and capacity building for its workers.
It goes without saying that BCR is asserting itself.
Of course, BCR, like the other banks that had
been in operation, had a large volume unproductive
loans after the events of 1994. Clients were either
killed, disappeared, or their documents lost.
The recovery of a collapsed economy can not happen
without its fare share of risks in advancing new
loans.
BCR has created a Risk Management Department,
with the main aim of supervising all kinds of
risks (loans) and to strengthen existing debt
recovery structures for bad loans, a calamity
that no Bank in Rwanda was spared.
| NEW
CHALLENGE |
BCR, now under a dynamic management, has
become a bank with a human face, has modern technology,
but is still short of own funds.
For a bank to be short of proper resources because
of its rapid growth and a disastrous past, the necessary
investments for its rehabilitation, adapting to
the requirements of a competitive environment may
have future problems.
Restore, reconstruct, rehabilitate, develop, make
profitable and modernise have become the war cry
of the bank, and it is in this that its true success
lies up to now.
Getting new capital and increasing the own funds
of Commercial Bank of Rwanda : THAT is the new challenge
that begins with the Third Millennium
| A WELL-THOUGHT-OUT
INVESTMENT PROGRAM |
In the same period, stock taking inside the country
confirmed that a vast investment program was necessary
to reconstruct a network of branches which would
be able not only to attract savings but also to
help in development by way of financing small projects
of production or agriculture.
The branches network, BCR headquarters as well as
its computer system limping since the reopening
(which even would be confronted to serious Y2K problems)
necessitated an important program of investment,
but … there were no means. After some hesitations
an investment program (the absolute minimum necessary)
of two million dollars was presented to the Board
of Directors towards the end of 1996.
After several discussions, the Management
of BCR was authorized to present a three-year recovery
plan, which shows that the bank can make necessary
investments based on its generated cash-flow.
The team embarked on its work to draw its first
three-year plan ever made at BCR. The green light
was given by the Board of Directors and an intensive
work took off, not only to reconstruct, but also
to modernize the bank and safeguard it against the
passage of the year 2000 (This started already at
the end of 1996 !!!)
The started a hard labour : we became
all at the same time architects, entrepreneurs,
constructors, computer scientists, electronics experts
and politicians. But a team of dynamic people who
believe in this project of reconstructing their
bank and their country, could work practically day
and night. |
In two years, a totally
new computer network "client-server" on
Windows NT was developed with powerful servers and
120 intelligent work stations. An integrated bank
software "Delta Bank" was installed, the
old work methods were replaced by a modern approach
of the customer. An pleasant work atmosphere and
welcoming counters were constructed.
The today's BCR can in now way be compared to the
BCR of October 1994. Highly qualified manpower (BCR
counts among its staff 40 % University Graduates),
modern buildings and counters, a well performing
computer system, 100 % computerized bank procedures,
branches all over the country performing with a
motivated personnel, a Mobile Bank serving up-country
where there is no permanent branch, a security system
and a sophisticated access control, specialized
vehicles for the conveyance of funds. The total
of investments that can be paid off is nearly six
million dollars. The total of investments in human
resources is such that figures alone can not convey
its importance
| SERVICES |
1. Account Opening
You can easily open an account with BCR, only
on presentation of identity papers for private
customers and upon presentation of the company
articles or the legal registered documents for
new customers with a legal status.
Accounts can be held in local currency (RWF) or
in any foreign currency currently quoted in Rwanda.
Accounts can be opened at our Kigali HQ or in
any Kigali or up country branch.
A minimum initial deposit can be required.
Procurators are accepted to enable different persons
to operate an account, signing alone or together.
Therefore special forms are available.
All banking operations are subjected to the most
recent edition of our General Operations Regulations.
An account statement will be edited after each
operation on an account. Our customers can choose
between our sending the statement to their home
or business address, keeping it for them at our
counters or putting it in a special " post-box
" in our banking hall at a small charge.
Daily, weekly, monthly and yearly statements can
be ordered.
2. TRANSFERS
Customers can transfer money from one account
to another in our Bank, to accounts held in another
local bank or a Bank in another Rwandan city or
to any Bank in the world. Transfers can be ordered
from a local currency or foreign currency account.
Transfers from local to foreign currency accounts
or vice versa, or from one foreign currency account
to another can be subject to National Bank Regulatory
Instructions.
The Bank will credit the customers' account for
any amount received from another local or foreign
bank. If the Bank receives any foreign currency
to be credited on a customers specific account
and if this account is not opened in the same
currency, the Bank converts automatically the
amount received, unless prior notice received
from the beneficiary.
We will normally credit customers' accounts without
charges, unless otherwise specified by the sender's
bank.
Certain transfers are subjected to a special commission.
Preprinted formulas for transfers can be ordered
by our customers at a small charge.
3. Checkbooks
We edit checkbooks on request of our customers
at a small charge. According to National Bank's
regulations, checks can only be drawn in local
currency (RWF).
Checks drawn on BCR can be cashed at whatever
agency or branch of our Bank.
All checks drawn on whatever bank and in any currency
can be deposited at our counters for further credit
to your account.
Certified checks can be obtained for payments
in favor of Customs, Revenue Authority, National
Bank, etc..., either by debiting a customers'
account or against deposit for non-customers.
For local payments or foreign currency withdrawals
abroad, we can issue Bankers' checks for your
safety.
4. Loans & Credit Facilities
BCR is willing to study any justified request
for credit lines, investment loans, personal loans
handed over to our bank either by customers or
non-customers, private persons or companies.
Various kinds of credit schemes and loans for
equipment, new vehicles or trucks, houses or constructions
of buildings, import or export financing and even
current assets and working capital needs can be
financed. Our specialized departments will advise
you accordingly..
Our tariffs and conditions are almost the best
you can find in the local market.
For short term credit we can allow " overdraft
" facilities if justified and with timely
return of funds.
5. Savings Account
In order to promote regular saving (especially
for the younger people) we developed savings accounts
with an attractive interest calculated and booked
at the end of the year.
Withdrawals and deposits on these savings accounts
are free. No minimum or maximum limits have been
fixed.
6. Fixed Deposit
BCR offers its customers a possibility for term
deposits from one month to five years' period.
Interests on these Fixed Deposit Accounts vary
accordingly to fixed period and amounts involved.
These deposits can be made in local and foreign
currencies.
Interests on fixed deposit accounts vary according
to local money market situation for the RWF-account
and as far as foreign currency fixed deposits
are concerned, interest follow the international
quotations.
Minimum fixed deposit in local currency is 250.000
RWF and 50.000 USD or equivalent for foreign currency.
Interests are fixed up to due date and paid by
this date, either in current account or added
to the fixed deposit.
7. Treasury bills
BCR offers Treasury Bills at one to five years.
Interest are payable at the end of each year.
Please contact our commercial services for subscription.
8. Foreign Exchange
All foreign exchange is subject to the National
Bank of Rwanda's foreign exchange regulations.
At BCR you can change Rwandese currency against
foreign currency or vice-versa. Exchange can be
made against cash money, by debiting an account
or against checks.
We also exchange your Traveler's' checks AMEXCO,
THOS COOK, etc... at very competitive conditions.
In general exchange from foreign currency to RWF
is free, from RWF to foreign currency exchange
is subject to certain conditions and justifications,
as per National Bank of Rwanda's Foreign Exchange
Regulations.
(e.g. : For a business trip abroad a customer
can buy 10.000 USD or its equivalent in any other
foreign currency, for a tourist trip this amount
is limited to 4.000 USD). Our experts will gladly
help and advise you in this matter.
9. Import / Export
BCR has been specializing for years in Import
and Export finance facilities.
Our License and L/C Departments have gained an
important experience over the years .
Through our important network of foreign correspondent
banks all over the world and thanks to our foreign
shareholders, Bank Brussels Lambert in Brussels,
London, Eastern Europe, Singapore, Banque Nationale
de Paris in Paris, New-York, London, Dresdner
Bank in Frankfurt, Tokyo, ....., we are able to
notify and confirm International Letters of Credit
(L/C) for any importation at competitive conditions.
Import licenses, as export licenses as well as
Mod A (for any transfer abroad) are validated
immediately by our services.
10.
BCR is happy to offer to any customer or non-customer
a newly introduced fast and secure money transfer
service : Western Union from December 1997 on.
This is an extremely fast - within 20 minutes
- system of money transfer all over the world.
You can send money tot and receive from anywhere.
A bank account is not needed. Of course the foreign
exchange regulations have to be respected !.
11. Credit Card
BCR is negotiating with its counterparts to introduce
and to have accepted all kinds of international
credit cards in the Rwandan market.
Up to now most international hotels and airlines
in Kigali accept payment by cards such as : Amexco,
Diners' Club, Master Card, Eurocard
SHAREHOLDERS OF BCR :
| |
% of the shares |
| Rwandese Government |
44,44 % |
| Banque
Bruxelles Lambert (Bruxels) |
42,51 % |
| Private Rwandese Nationals |
13,05 % |
| BCR
A WORLWIDE NETWORK |
Bank of America NT & SA, New York
Bank Brussels Lambert SA, Brussels
NATIONAL BANK OF EGYPT, Cairo
MASHREQ BANK, Dubai, UAE
BANK OF CHINA, Beijing
Dresdner Bank AG, Frankfurt
BNP, Paris
CAN IMP BANK OF COMMERCE, Toronto
Commerzbank, Frankfurt
ABN-AMRO, Nairobi
NATIONAL BANK OF COMMERCE |
Back
