ECO - Trade And Development Bank

Organizational Structure

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The Organizational Structure of ECO Trade and Development Bank (hereinafter referred as “the Bank”) is establishing the fundamental principles and rules on the basis of which the Bank is built and operated, facilitating thus the implementation of the provisions of the Articles of Agreement establishing the Bank (hereinafter referred as “the Agreement”). This document provides detailed information on the authority and responsibility attached to each organizational unit, its relative position in the hierarchic structure of the organization, as well as on the delineation of functions and coordination needs and requirements with other units. The document is in full compliance with the Organizational Chart.
The Bank is structured, under the supervision of Vice-Presidents, and a number of independent Offices and Departments reporting directly to the President. The President is the Chief Executive Officer and legal representative of the Bank that conducts the day-to-day business of the Bank under the strategic direction of the Board of Directors in conformity with the Agreement. The Vice-Presidents are appointed by the Board of Directors and conduct their activity under delegated authority from the President. The President, the Vice-Presidents form the Management Committee and represent the senior management of the Bank.
The external auditors audit the affairs of the Bank and report to the Board of Directors on a periodic basis as may be decided by the Board of Directors.

Accounting, Budget and Controllers
The Department,

is responsible for the preparation and execution of annual budgets and manages the resource allocation process,
develops and provides the Bank’s accounting, budgeting, and reporting systems,
monitors and reports the performance against plans and budgets,
contributes to the preparation of business plans,
manages the management information system of the Bank, develops key monitoring tools and establishes effective appropriate control mechanisms with emphasis on performance measurement,
conducts special analyses relating to operations, revenues and cost effectiveness,
elaborates reports for the use of other departments,
responsible for financial and accounting control of the operations,
prepares reports setting forth the financial position of ordinary capital resources and special funds,
calculates and arranges the settlement of maintenance of value obligations of the member states,
provides the control function for all movement of funds,
provides input into the disbursement structure of an operation, and approves disbursements under loan, equity, guarantee and technical assistance operations,
provides assistance to other departments in negotiating and administering Bank operations,
authorizes payments of administrative expenses and salaries, allowances, and benefits,
monitors payments and reimbursements on banking operations,
provides assistance to the Treasury Department in formulating the Bank’s financial policies.

Administrative Services
The department,

supports and maintains services to the entire Bank,
is responsible for the management and allocation of support staff,
is responsible for the supervision and internal and external security of premises, spaces and equipment,
is responsible for the maintenance of the head office building and the equipment in it,
provides and maintains the registration, filing and recording system of correspondence and documents of the Bank,
is responsible for information on monitoring and support of the Bank’s intranet,
handles all requests for publication and recommends such requests for the approval to the President,
establishes and maintains the library of the Bank,
is responsible for and coordinates all internal purchasing needs and handles the process according to the internal regulations,
carries out all necessary tasks for the efficient and timely supply of machinery, equipment, materials and services,
handles administrative and procedural process of construction or purchasing, leasing and maintenance of the premises of the Bank.

Banking & Non Banking Financial Institutions
The Department,

is responsible for the design, implementation and monitoring of the Bank’s trade finance policies and operations,
is responsible for financing operations that promote SME sector development in member countries,
by coordinating with the Office of the General Counsel and other relevant organizational departments in the Bank, takes part indeveloping and negotiating the financing packages,
examines and monitors the financing operations through financial intermediaries when and where necessary,
is responsible for identification, design, assessment and implementation of financially viable and economically sustainable operations to achieve the Bank’s objectives in various sectors.

Corporate & Project Financing
The Department,

carries out operational marketing activities and supervision of operations,
is responsible for establishing and maintaining the relationships with partners and clients for overall operation identification and preparation, and for conducting loan negotiations,
is responsible to build up a pipeline of operations consistent with country/region needs and institutional objectives and to build up the capacity to respond flexibly to emerging opportunities,
in order to build the Bank’s capacity as a catalyst for economic prosperity and regional development, establishes the practical modalities and mechanisms to assess the clients’ needs, contributes to defining the Bank’s operational strategies, and implements priority measures, (country and sector strategies, business plans, budget work plans),
utilizes the Bank’s funds in operations with high cooperation and development impact,
maintains a good-quality well-diversified portfolio of assets in priority sectors representing a broad geographical coverage,
offers new and innovative products in order to better serve clients' needs and meet market requirements,
increases the productivity of the Bank,
reduces the time between BoD approval, signing of operations and disbursement of funds,
increases the Bank’s market presence and strengthens its role in satisfying its specific niche,
supervises operations in conformity with the Bank’s approved procedures, as ultimate responsibility for operations throughout the whole Operations Cycle Policy, including full repayment, rests with the operation teams,
is responsible for financing viable operations for promotion of cooperation among the member countries where medium to long-term operations in manufacturing, transportation and energy sectors are given priority, and where cross-country operations involving, or indirectly benefiting, several countries of operations are targeted,
is responsible for financing operations to increase cross-country direct foreign investment,
is responsible for financing operations having high local development impact such as SME support creditlines, and other SME oriented financial instruments,
is responsible for financing trade of processed goods produced in member countries,
is responsible for investing in business generation,
is responsible for promoting the awareness and positive image of the Bank both in the member states and internationally.

Environment & Procurement
Environment Unit,

focuses on the incorporation of environmental concerns into operations,
assesses the environmental impact and risk of the operations as well as implementation of the Bank’s environmental policy and procedures, and regional capacity building and environmental cooperation,
identifies environmental opportunities that will improve the environmental aspects of operations, and promotes environmental awareness within the Bank,
identifies, processes and implements operations that are partly or wholly intended for environmental protection and natural resource conservation,
provides environmental input into the various stages of operation evaluation throughout the Bank’s operations cycle,
provides advice on environmental issues relating to the operations including ensuring that appropriate environmental protection measures are included in the design and implementation of operations,

Procurement Unit,

prepares and maintains procurement documentation to be translated into formal public sector procurement documentation for use by the Bank’s clients consistent with established policies; practices to be followed by the Bank’s clients in procuring goods, works and services including consulting services, and modifying these as needs arise,
prepares internal procedures, and advises, guides and supports the Bank staff and its clients on tendering and contracting strategies, and procurement planning, procurement or technical issues related to conditions precedent to first disbursement; on particular procurement or technical issues with respect to amendments, waivers, consents and notices in selecting and hiring consultants; and on procurement related issues in the Operations Manual and a database of consultants,
provides advice, guidance and support on good procurement practice moderating the needs for accountability, economy, efficiency, fairness, responsibility and transparency in procurement that uses Bank funds,
reviews, prior to presentation to the Credit Committee, documentation to be submitted to it for consideration that envisage procurement of goods, works or services (including consulting services) by clients that use Bank funds and any other items having procurement implications including review of draft legal documents,
presents to the Credit Committee ‘exception reports’ on the submitted documentation highlighting potential procurement issues, inconsistencies and related risks, and draws attention to departures from agreed procedures,
advises and offers support on workouts and restructuring,
participates in the monitoring of operations, upon request, for procurement and technical issues,
establishes and maintains communications and working relationships with counterpart units and staff of other international financial institutions (IFIs) to facilitate mutual understanding and cooperation in areas of common interest.

External Relations and BoD-BoG Communications
External Relations Unit,

is responsible for promoting the image and increasing public awareness of the Bank,
develops and implements the Bank’s policy for external relations and communications,
expands and strengthens relations with the authorities of member countries, and develops and maintains relations with selected international institutions,
maintains contacts with the media and helps to create a better awareness of the Bank’s role and operations in member countries,
builds and maintains a favourable climate of public opinion for the Bank in the member states and worldwide,
handles day-to-day matters relating to the press,
organizes events like conferences, annual meetings, forums etc.,
coordinates and implements the Bank’s publications program and facilitates publication activities,
coordinates publishing of the Annual Report and handles its editing, design, production and distribution,
prepares and produces informational publications and brochures; and extends, as required, appropriate technical advice and assistance to departments and offices on the production of Bank publications.

BoD-BoG Meetings Unit,

is responsible to enhance the general efficiency of the Bank by carrying out communication and information activities between the Bank and its governing structures,
organizes the annual meetings of the Board of Governors; provides the protocol functions of the Bank, and provides functions of meeting-related services,
provides preparation and assistance functions in the meetings of the Board of Directors,
provides accurate records, proceedings and minutes of the meetings of the Boards and the Bank’s committee meetings,
keeps all records of the BoD/BoG/Committee meetings,
carries out all communications related to the businesses of the Board of Governors and the Board of Directors,
makes available to the appropriate Bank staff and disseminates, where required, relevant BoD/BoG decisions and supportive documentation.

Evaluation
The Department,

is responsible independently for assessing the contribution of operations executed by the Bank towards achieving the Bank’s objectives,
has evaluation function aiming at improving the design and execution of the Bank’s activities in the light of lessons learned from its operations,
has the main task of carrying out evaluations of operations , preparing other relevant reports on request from Management including occasional mid-term review, and undertaking broad studies on operations and impact assessment,
undertakes post evaluation studies on specific matters, sectors or countries,
reviews and provides inputs on documents relating to the processing of new loans if so requested by the operation teams, and other papers relevant to the Bank’s operational policies and procedures to ensure that findings from post evaluation studies are fed back and contribute to improving the effectiveness of Bank operations.

Financial Analysis & Risk Management
The Department,

is responsible for performing the financial analysis of banks, companies and other obligors and for providing an opinion of clients’ creditworthiness,
is responsible for the review and evaluation of the financial aspects of proposed operations,
prepares financial forecasts, evaluates potential profitability and financial consequences of the proposed operations and recommends appropriate financial covenants and ratios to be included in the loan agreement,
monitors financial performance of the operation through analysis of operation financial accounts, financial statements and audit reports,
participates in on-site visits at the due diligence and/ or monitoring stage as appropriate and, when necessary, participates with financial advice during the process of non-performing assets,
is responsible for designing internal regulations to identify, evaluate, protect against and to monitor financial risks assumed by the Bank related to financial institutions, corporations, and sovereigns,
seeks to ensure that any financial risks are properly identified, managed and mitigated through a comprehensive and rigorous process,
reviews on regular basis to identify promptly any changes required in the assigned risk ratings,
reviews risk-return analyses and debt service projections,
takes all appropriate actions to mitigate credit problems for existing commitments in coordination with operation teams and other relevant organizational departments,
conducts sector, country and operation risk assessment, and if required, conducts economic and political analysis on a regional scale together with the Office of the Chief Economist,
formulates guidelines for evaluating of and dealing with client,
evaluates and appraises transaction proposals,
elaborates schedules for supervision and monitoring reports,
sets up and monitors risk exposure parameters across countries and sectors as appropriate,
sets up an appropriate risk rating system,
periodically reviews the risk assets of the Bank, classifies them and determines required loss risk provisions with respect to the Bank’s provisioning policy, and monitors the assignment of provisions,
evaluates country and operation risk for each operation, and determines combined risk margin bracket in conformity with the Bank’s pricing policy, and recommends to the Credit Committee the approval/ rejection of proposed operation,
monitors risk in Treasury activities.

Human Resources
The Department,

is responsible from developing, administering and maintaining all HR processes of the Bank; including recruitment, appointment, performance appraisal and training of all personnel, and expatriate services,
provides support in developing and administering programs for staff recruitment, human resource planning, career development, annual training programs,
establishes implementation, monitoring, and maintenance of competitiveness and adequacy of the salary scales, compensation, insurance and benefit packages,
establishes an integrated human resources management system,
conducts periodic comparisons with other international organizations human resources developments,
ensures that position titles and corresponding job descriptions are in conformity with the activities of the organizational departments of the Bank,
provides support in the area of performance management by giving coaching at performance reviews and designing the guidelines for the system as well as decisions taken for the employees,
manages the training program, and career development that shall be structured in such a way to respond to the evolving needs of the Bank,
is responsible for the administration of contracts and the processing of salary, benefits and allowances, which, inter alia, include the administration of the paperwork related to the initial appointment, extension of appointment, amendments to the employment contracts, termination, all types of leave, entitlements and changes in entitlements to all types of allowances and additional compensations,
handles the preparation of the monthly personnel payment requests (payroll) and all related payment requests (pension, insurance, etc) for the personnel of the Bank; coordinates the provision of consultancy services on these matters,
holds operational responsibility for the Bank’s pension plan; keeps track of and makes the relevant calculations for the contributions of the staff to the Bank’s pension plan accounts, maintains and updates the records of the individual accounts, coordinates and processes the paperwork for the relevant rate modifications; and coordinates the provision of the relevant consultancy services,
holds operational responsibility for the Bank’s health, life & accident insurance plan; prepares payment requests for the payment of premiums for the Bank’s such insurance policies; advises the staff on their insurance entitlements,
serves as a liaison with the Insurer and assists the staff in resolving relevant problems; coordinates the provision of the relevant consultancy services.

Information Technologies
The department,

is responsible for planning and managing the automated information system of the Bank,
designs and develops, implements and evaluates hardware system as well as software needs, websites, management information system including the Bank’s operational, financial and administrative functions,
sets up a management information system, and establishes all needed communications of the Bank (internet, Reuters, etc.) as well,
maintains the software and hardware of the Bank’s network, and trains the staff,
ensures proper security of applications,
establishes and continuously improves methodologies for consolidating, maintaining, storing and accessing data.
is responsible for information on monitoring and support of the Bank’s intranet.

Internal Audit & Compliance
The Department,

is responsible for financial and operational audit of all functions as well as loans and other transactions of the Bank,
has the target to evaluate the validity, accuracy and completeness of documentation and other information as regards financial, accounting, administrative, managerial and operational functions of the Bank,
has also a compliance function with respect to the observance of the Bank’s internal regulations,
must help to promote responsibility and awareness throughout the organization, to evaluate risks, to anticipate emerging issues, and to identify deviations from established controls,
makes recommendations on control mechanisms and measures conducive to prevention and/ or correction of undesired developments,
furnishes analyses, recommendations, advice, and information concerning the activities reviewed, and provides recommendations for improvement of policies, procedures, manuals, systems and the exploitation of the Bank’s resources within the scope of its responsibility,
has a mission to foster an environment of continuous improvement in controls and risk awareness; a continuous self-checking control environment by working in partnership with senior management,
according to its annual work plan reviews the Bank’s organizational departments at appropriate intervals to determine whether the functions of planning, organizing, directing, and controlling are efficiently and effectively carried out according to management instructions, policies, and procedures, and in a manner consistent with the objectives of the Bank,
assesses and controls the reliability and integrity of financial information as well as the means to identify, measure, classify and report such information,
assesses the effectiveness of the management controls and systems, in place, used to account for, and safeguard against losses of Bank’s assets, and, as appropriate, verify the existence of such assets,
evaluates the adequacy and effectiveness of internal control mechanisms and systems established to ensure compliance with policies, procedures, guidelines, rules and regulations, and assesses the degree of compliance with them,
provides checks and balances with respect to the efficiency with which the Bank’s resources are employed pursuant to the internal regulations,
reviews the operations and programs of the Bank to ascertain whether, from the viewpoint of established internal controls, results are consistent with stated objectives and goals, and if operations and programs are being or have been carried out as planned and approved,
additionally, carries out any specific audit requests or investigation upon the request of Management and the Board of Directors.
assists the Bank in managing the compliance and operational risk,
identifies, assesses, monitors and control/mitigate the Bank’s compliance and operational risks,
reports to the President and the Board of Directors on the Bank’s compliance and operational risk management efforts.
on its own initiative communicates with any staff member and obtains access to any records or files necessary to enable it to carry out its responsibilities.

The Office of the Chief Economist
The Department,

provides economic advisory services to the Bank and conducts research on technical and analytical issues raised by the Bank’s functions,
assists the operational activity of the Bank and the Management by providing information and conducting economic research, analysis, forecasting, and reviews in the field of economic development and cooperation in the region,
keeps the Bank informed about developments in the countries of operations as well as those in the world economy that affect the member countries,
assesses relevant trends in global economic environment and in international markets,
conducts studies in specific international, regional, national, sectoral problems with a view to identifying priority areas for interventions of the Bank,
develops forecasts and projections for the Bank’s strategy and operations,
provides substantive input to contribute to operational analysis and development of country/ sectoral programmes,
conducts economic analysis of operations, in particular assesses the development and the cooperation impact of operations on member countries economies and on the region as a whole,
provides inputs to the preparation of Annual Reports,
undertakes research and surveys for promoting the economic development of the region and the member states.

The Office of the General Counsel
The Department,

provides advice and assistance to the President and to the Organizational Departments on internal and external legal matters relating to the organization, administration, financing activities, and operations of the Bank as well as the implementation of the Agreement,
is responsible for the implementation of the Headquarters Agreement and of other relevant by-laws and policies of the Bank,
is mandated to represent the Bank in negotiation of legal agreements (e.g. loan contracts, security agreements), legal proceedings and arbitration,
provides legal advice and assistance on all aspects of the Bank's activities,
focuses on specific banking and financing operations but also advises on institutional and policy issues,
provides legal support for banking operations including the development of standard legal documents for use, in conjunction with external counsel as necessary, particularly with respect to the formulation of appropriate legal structures and security arrangements, the arrangement of the preparation of loan and security documentation,
provides legal support with respect to borrowings and other financial operations, dealings with rating agencies, and the development and implementation of financial procedures for various purposes,
provides legal advice and assistance on legal aspects of personnel and administrative issues including, in particular, those relating to the Bank's status, privileges and immunities, as well as all staff related issues under the Agreement and the Headquarters Agreement,
participates in the meeting of the Board of Directors, the Board of Governors and of relevant committees of the Bank if necessary,
keeps abreast of legal developments in member countries and maintains contact with senior legal advisors of IFIs and other relevant national and international organizations,
supports the compliance of banking and legal documents with the Bank’s rules, regulations and procedures.
is responsible for the relations with Turkish Government Authorities concerning privileges and immunities, which extend to the Bank and the staff under the Headquarters Agreement.

Policy & Strategy
The Department,

formulates the Bank’s country/sector strategies in close cooperation with business units and other relevant departments in the Bank,
is responsible for coordination/participation in the preparation of Bank policy and operational documents,
monitors, analyzes and reports economic, sector and business environment developments in the Bank’s countries of operation; assesses implications for the Bank’s operational strategies and programs, and participates/ assists in the design of initiatives to help the Bank fulfill its mandate,
on an as needed basis, performs country performance reviews and updates,
maintains ongoing policy dialogue with member governments and relevant priority representatives of the private sector, multilateral development institutions, international organizations, multilateral and bilateral donors, and other concerned stakeholders in a manner consistent with country/region needs and institutional objectives with a view to building capacity to respond flexibly to emerging opportunities,
develops country assistance plans which include identification of technical assistance, co-financing and operational opportunities,
as required, coordinates and/or participates in preparation of development programs (such as SME development, export promotion, special funds and other new product development), and of the requirements for technical assistance and cooperation,
supports the operational activities of the Banking Teams to identify suitable operations for financing through networking with relevant organizations of businesses in member countries, business partners, sponsors and co-financiers.

Project Implementation and Monitoring
The Department;

elaborates uniform practices and procedures for operations monitoring,
contributes to the revision and implementation of relevant banking and monitoring rules, procedures and policies,
carries out specific monitoring activities for relevant phases as defined in the Operations Cycle according to monitoring schedules and on the basis of periodic supervision reports, monitoring plans and benchmarks in cooperation with operation teams and other relevant departments,
is responsible for preparation of monitoring reports in coordination with all relevant departments in the Bank, and presents those reports to the Bank management,
prepares and submits to the Management and BoD periodic portfolio reports and generates periodical or ad-hoc reporting on all banking operations at the management request,
checks compliance of operations with provisions of specific rules and regulations as well as recommendations of audit bodies (Internal Audit & Compliance Department),
monitors schedules for disbursements, repayments, out-of-pocket expenses and other related topics in coordination with relevant departments of the Bank,
maintains the database of operations and provides advice on necessary amendments, waivers, consents and notices on recommendation from relevant departments,
performs all other tasks relevant to portfolio administration activities,
makes recommendations on issues related to the restructuring and work-out of non-performing assets and assumes responsibilities for the coordination of the restructuring and recovery process.
carries out a continuous monitoring of credit and equity exposures, reviews the credit proposals to minimize the credit/ investment risk,

Special Advisor
The Department,

provides a support function to the President; to this end she/he cooperates and coordinates with other relevant organizational units of the Bank, as the need may be.
advises the President on the general and specific policy aspects of the Bank’s mandate;
conducts research on specific or general management and organizational issues, and develops alternative scenarios for solving problems and improving the effectiveness of managerial functions of the Bank;
contributes to and assists the work of the President, by offering alternative approaches to issues and processes, pertaining to the Bank’s operations;
reviews and advises the President on documents submitted to the President, as and when requested;
attends committee meetings and participates in various working and study groups, as and when requested;
carries out intensive analyses of certain specific issues or subjects;
obtains and submits to the President information on the developments, news and events that take place in the world, which is of special relevance to the Bank.

Treasury
The department,

is responsible for mobilizing funds required for the Bank’s operations, planning, and management of financings, portfolio policy design, implementation and monitoring. It arranges borrowings, which it negotiates and administers on behalf of the Bank,
coordinates all work relating to the collection of capital contributions and its possible subsequent increases,
manages the Bank’s investment portfolio and ensures that the Bank’s liquidity requirements are met at all times.
monitors interest rate and foreign exchange exposure on a daily basis and, however on a broader basis, is responsible for the asset and liability management of the Bank,
handles the collection and the custody of funds due to the Bank,
formulates the strategy for the investment management of funds both from the ordinary capital resources and special fund(s),
implements the above strategy by executing transactions directly or through the intermediation of outside parties such as Fund Managers,
formulates the relevant policy guidelines for the Bank’s risk taking capacity under alternative business growth scenarios,
estimates the disbursement, liquidity and borrowing requirements of the Bank,
formulates guidelines and establishes exposure limits for dealing with counterparts and the Member States.

These activities are performed in the following units:

Funding Unit: It raises funds externally from official bilateral and multilateral donors, banks, other financiers, and the international capital markets. It assesses the Bank’s internal risk bearing capacity, conducts studies on the planning, projection and mobilization of resources and handles the transactions relating to the mobilization of resources, including of capital subscription.
Investments Unit: It is responsible for formulating overall investment strategy for funds not immediately needed in the Bank’s operations. This includes evaluating new investment proposals for both Special Funds and Ordinary Capital Resources. It invests the liquidity of the Bank to generate maximum returns. It provides the management of Special Funds raised by the Bank.
Assets and Liabilities Management Unit: It is responsible for structuring the Bank’s asset and liabilities to meet the Bank’s needs in terms of risk (interest rate, exchange rate, maturity, market, operational). It is responsible for the design of portfolio structure, new product development for treasury activities, and preparation of marketing strategy. It supports technically the Asset and Liability Management Committee. It conducts studies on trends in financial markets.