Corporate Governance Consulting to Agroinvestbank

Corporate Governance, GBRW Consulting, GBRW Group

Agroinvestbank, established in 1992 following the collapse of the Soviet Union, is one of the leading banks of Tajikistan and has strong branch network across the country.

It focuses heavily on agricultural production and processing, but also has a strong commercial and retail banking presence.

The European Bank for Reconstruction and Development (EBRD) took a 25% equity stake in the Bank in 2009 for approximately US$ 12mn. GBRW were retained by EBRD as corporate governance advisors to the Bank, to help enhance the stability and profitability of the institution.

The aim of the assignment covered a wide range of functional divisions and departments, with a view to streamlining the flow of timely and precise information from day-to-day business operations, to management, and thence to the Board. In parallel, the assignment aimed to work with the Board to improve the timeliness and consistency of decision making.

In addition, the assignment was designed to exemplify the benefits of robust corporate governance to other players in the banking sector, as well as the wider public and private sectors in Tajikistan.

Deliverables included:

- Practical advice on organisational structure with appropriate responsibilities for both supervisory and management board members;

- Development of an appropriate board-level committee structure with recommendations for the establishment and improvement of remuneration and audit committees;

- Development of documentation including Terms of Reference, and board-level policies and procedures;

- Recommendations on improvements to management and performance reporting;

- Practical support in the execution of effective board and committee meetings; and

- A training needs analysis and detailed recommendation on training and development for both supervisory and management board members.