Rehabilitation and restructuring of Privredna banka Zagreb

GBRW Consulting, GBRW Group, Problem Loan Management, Risk Management

Privredna banka Zagreb was the second largest bank in Croatia, and as a state owned bank it had been required to make significant contribution to the war effort.

In consequence much of its portfolio was in default (and was subsequently transferred to the state work out agency, the State Agency for the Insurance of Deposits and Bank Restructuring or DAB).

As part of a post-conflict restructuring exercise, the bank was scheduled for restructuring and privatisation. GBRW supported the restructuring of Privedna Banka, with a particular focus on reviewing the strategy and organisation structure, overseeing the non-performing asset resolution, reforming the risk management and internal audit functions, and capacity building of the treasury department and the approach to Asset and Liability Management in the bank. The bank was successfully taken private with a majority stake taken by Banca Commerciale Italiana (now Intesa Sanpaulo).

At the conclusion of the project the GBRW consultant was asked to join Privredna banka Zagreb as the Senior Advisor to the Management Board. This required the provision of detailed advice and proposals on banking policies and procedures on a wide range of banking topics.

Deliverables included:

- Strategic planning and organisational design, restructuring and privatisation advisory, and corporate governance;

- Financial control including accounting and budgeting;

- Risk management including internal audit, credit risk management, and treasury and Asset and Liability Management (ALM);

- Strategic marketing, product, and distribution channel management;

- Retail, Small- and Medium-sized Enterprise (SME), and corporate banking business and operating models;

- IT and Management Information Systems (MIS); and

- Operations and Human Resource Management.