350 likes | 477 Vues
2. Background Purpose Key elements of our Corporate Plan Scanning the environment and building capacities Supporting values Operating principles Objectives Financial resources and sources of income (refer to budget presentation) Conclusion. CONTENTS. 3. BACKGROUND . Over the pa
E N D
2. 2 Background
Purpose
Key elements of our Corporate Plan
Scanning the environment and building capacities
Supporting values
Operating principles
Objectives
Financial resources and sources of income (refer to
budget presentation)
Conclusion
The document consists of 5 sections, preceded by an introduction. The introduction explains the structure of the document and discusses how changes to it will be dealt with.
Section 1, as you can see, deals with the main pieces of legislation and the regulations which govern the bank’s operations. It covers the levels of approval allowed by both the Acts and by the Treasury Regulations, and the responsibilities of various parties in terms of the PFMA and Treasury Regulations.
Section 2 deals with the delegation of powers by the CEO to Bank officials, to allow the Bank to conduct its day-to-day operations.
Section 3 covers the signing powers conferred on various Bank officials by the CEO, to allow them to exercise their delegated powers.
Section 4 addresses the Bank’s obligations in terms of the PAIA.
Section 5 looks at the responsibilities that you, the Board of the Land Bank, have under Code of Corporate Practice and Conduct proposed by the second King Committee on Corporate Governance.The document consists of 5 sections, preceded by an introduction. The introduction explains the structure of the document and discusses how changes to it will be dealt with.
Section 1, as you can see, deals with the main pieces of legislation and the regulations which govern the bank’s operations. It covers the levels of approval allowed by both the Acts and by the Treasury Regulations, and the responsibilities of various parties in terms of the PFMA and Treasury Regulations.
Section 2 deals with the delegation of powers by the CEO to Bank officials, to allow the Bank to conduct its day-to-day operations.
Section 3 covers the signing powers conferred on various Bank officials by the CEO, to allow them to exercise their delegated powers.
Section 4 addresses the Bank’s obligations in terms of the PAIA.
Section 5 looks at the responsibilities that you, the Board of the Land Bank, have under Code of Corporate Practice and Conduct proposed by the second King Committee on Corporate Governance.
3. 3 BACKGROUND Over the past five years the Land Bank has had low levels of capital and has been making losses
Land Bank is currently not delivering effectively on its development mandate
About R821m are development loans
Funding development in the financial markets presents challenges for the Land Bank
The Land Bank has lost its market share over the past five years due to the following:
Growth of the financing in the sector outpaced that of the Bank
Constraints of financial resources
Removal of Government subsidies and financial support to farmers
The document consists of 5 sections, preceded by an introduction. The introduction explains the structure of the document and discusses how changes to it will be dealt with.
Section 1, as you can see, deals with the main pieces of legislation and the regulations which govern the bank’s operations. It covers the levels of approval allowed by both the Acts and by the Treasury Regulations, and the responsibilities of various parties in terms of the PFMA and Treasury Regulations.
Section 2 deals with the delegation of powers by the CEO to Bank officials, to allow the Bank to conduct its day-to-day operations.
Section 3 covers the signing powers conferred on various Bank officials by the CEO, to allow them to exercise their delegated powers.
Section 4 addresses the Bank’s obligations in terms of the PAIA.
Section 5 looks at the responsibilities that you, the Board of the Land Bank, have under Code of Corporate Practice and Conduct proposed by the second King Committee on Corporate Governance.The document consists of 5 sections, preceded by an introduction. The introduction explains the structure of the document and discusses how changes to it will be dealt with.
Section 1, as you can see, deals with the main pieces of legislation and the regulations which govern the bank’s operations. It covers the levels of approval allowed by both the Acts and by the Treasury Regulations, and the responsibilities of various parties in terms of the PFMA and Treasury Regulations.
Section 2 deals with the delegation of powers by the CEO to Bank officials, to allow the Bank to conduct its day-to-day operations.
Section 3 covers the signing powers conferred on various Bank officials by the CEO, to allow them to exercise their delegated powers.
Section 4 addresses the Bank’s obligations in terms of the PAIA.
Section 5 looks at the responsibilities that you, the Board of the Land Bank, have under Code of Corporate Practice and Conduct proposed by the second King Committee on Corporate Governance.
4. 4 BACKGROUND (Cont)
Demand for agricultural finance has increased due to
Improved farm incomes
Rising input costs
Expanding production
The document consists of 5 sections, preceded by an introduction. The introduction explains the structure of the document and discusses how changes to it will be dealt with.
Section 1, as you can see, deals with the main pieces of legislation and the regulations which govern the bank’s operations. It covers the levels of approval allowed by both the Acts and by the Treasury Regulations, and the responsibilities of various parties in terms of the PFMA and Treasury Regulations.
Section 2 deals with the delegation of powers by the CEO to Bank officials, to allow the Bank to conduct its day-to-day operations.
Section 3 covers the signing powers conferred on various Bank officials by the CEO, to allow them to exercise their delegated powers.
Section 4 addresses the Bank’s obligations in terms of the PAIA.
Section 5 looks at the responsibilities that you, the Board of the Land Bank, have under Code of Corporate Practice and Conduct proposed by the second King Committee on Corporate Governance.The document consists of 5 sections, preceded by an introduction. The introduction explains the structure of the document and discusses how changes to it will be dealt with.
Section 1, as you can see, deals with the main pieces of legislation and the regulations which govern the bank’s operations. It covers the levels of approval allowed by both the Acts and by the Treasury Regulations, and the responsibilities of various parties in terms of the PFMA and Treasury Regulations.
Section 2 deals with the delegation of powers by the CEO to Bank officials, to allow the Bank to conduct its day-to-day operations.
Section 3 covers the signing powers conferred on various Bank officials by the CEO, to allow them to exercise their delegated powers.
Section 4 addresses the Bank’s obligations in terms of the PAIA.
Section 5 looks at the responsibilities that you, the Board of the Land Bank, have under Code of Corporate Practice and Conduct proposed by the second King Committee on Corporate Governance.
5. 5 PURPOSE The objects of the Bank are the promotion, facilitation and support of
Equitable ownership of agricultural land, in particular the increase of ownership of agricultural land by historically disadvantaged persons
Agrarian reform, land redistribution or development programmes aimed at historically disadvantaged persons or groups of such persons for the development of farming enterprises and agricultural purposes
Land access for agricultural purposes
Agricultural entrepreneurship
Removal of the legacy of past racial and gender discrimination in the agricultural sector
The document consists of 5 sections, preceded by an introduction. The introduction explains the structure of the document and discusses how changes to it will be dealt with.
Section 1, as you can see, deals with the main pieces of legislation and the regulations which govern the bank’s operations. It covers the levels of approval allowed by both the Acts and by the Treasury Regulations, and the responsibilities of various parties in terms of the PFMA and Treasury Regulations.
Section 2 deals with the delegation of powers by the CEO to Bank officials, to allow the Bank to conduct its day-to-day operations.
Section 3 covers the signing powers conferred on various Bank officials by the CEO, to allow them to exercise their delegated powers.
Section 4 addresses the Bank’s obligations in terms of the PAIA.
Section 5 looks at the responsibilities that you, the Board of the Land Bank, have under Code of Corporate Practice and Conduct proposed by the second King Committee on Corporate Governance.The document consists of 5 sections, preceded by an introduction. The introduction explains the structure of the document and discusses how changes to it will be dealt with.
Section 1, as you can see, deals with the main pieces of legislation and the regulations which govern the bank’s operations. It covers the levels of approval allowed by both the Acts and by the Treasury Regulations, and the responsibilities of various parties in terms of the PFMA and Treasury Regulations.
Section 2 deals with the delegation of powers by the CEO to Bank officials, to allow the Bank to conduct its day-to-day operations.
Section 3 covers the signing powers conferred on various Bank officials by the CEO, to allow them to exercise their delegated powers.
Section 4 addresses the Bank’s obligations in terms of the PAIA.
Section 5 looks at the responsibilities that you, the Board of the Land Bank, have under Code of Corporate Practice and Conduct proposed by the second King Committee on Corporate Governance.
6. 6 PURPOSE (Cont) enhancement of productivity, profitability, investment and innovation in the agricultural and rural financial systems
Programmes designed to stimulate the growth of the agricultural sector and the better use of land
Programmes designed to promote and develop the environmental sustainability of land and related natural resources
Programmes that contribute to agricultural aspects of rural development and job creation
Commercial agriculture
Food security
The document consists of 5 sections, preceded by an introduction. The introduction explains the structure of the document and discusses how changes to it will be dealt with.
Section 1, as you can see, deals with the main pieces of legislation and the regulations which govern the bank’s operations. It covers the levels of approval allowed by both the Acts and by the Treasury Regulations, and the responsibilities of various parties in terms of the PFMA and Treasury Regulations.
Section 2 deals with the delegation of powers by the CEO to Bank officials, to allow the Bank to conduct its day-to-day operations.
Section 3 covers the signing powers conferred on various Bank officials by the CEO, to allow them to exercise their delegated powers.
Section 4 addresses the Bank’s obligations in terms of the PAIA.
Section 5 looks at the responsibilities that you, the Board of the Land Bank, have under Code of Corporate Practice and Conduct proposed by the second King Committee on Corporate Governance.The document consists of 5 sections, preceded by an introduction. The introduction explains the structure of the document and discusses how changes to it will be dealt with.
Section 1, as you can see, deals with the main pieces of legislation and the regulations which govern the bank’s operations. It covers the levels of approval allowed by both the Acts and by the Treasury Regulations, and the responsibilities of various parties in terms of the PFMA and Treasury Regulations.
Section 2 deals with the delegation of powers by the CEO to Bank officials, to allow the Bank to conduct its day-to-day operations.
Section 3 covers the signing powers conferred on various Bank officials by the CEO, to allow them to exercise their delegated powers.
Section 4 addresses the Bank’s obligations in terms of the PAIA.
Section 5 looks at the responsibilities that you, the Board of the Land Bank, have under Code of Corporate Practice and Conduct proposed by the second King Committee on Corporate Governance.
7. 7 KEY ELEMENTS OF CORPORATE PLAN
8. 8 SUPPORTING VALUES Guided by Batho Pele
Integrity
Honest and ethical conduct in all of our interactions. Honoring the dignity and worth of all. Ensuring fairness and equitable access to our services
Professionalism and Service excellence
Executing all activities in a professional manner thereby ensuring that we exceed delivery expectations for quality, responsiveness and value to our customers.
Accountability
Taking personal ownership to meet commitments
The document consists of 5 sections, preceded by an introduction. The introduction explains the structure of the document and discusses how changes to it will be dealt with.
Section 1, as you can see, deals with the main pieces of legislation and the regulations which govern the bank’s operations. It covers the levels of approval allowed by both the Acts and by the Treasury Regulations, and the responsibilities of various parties in terms of the PFMA and Treasury Regulations.
Section 2 deals with the delegation of powers by the CEO to Bank officials, to allow the Bank to conduct its day-to-day operations.
Section 3 covers the signing powers conferred on various Bank officials by the CEO, to allow them to exercise their delegated powers.
Section 4 addresses the Bank’s obligations in terms of the PAIA.
Section 5 looks at the responsibilities that you, the Board of the Land Bank, have under Code of Corporate Practice and Conduct proposed by the second King Committee on Corporate Governance.The document consists of 5 sections, preceded by an introduction. The introduction explains the structure of the document and discusses how changes to it will be dealt with.
Section 1, as you can see, deals with the main pieces of legislation and the regulations which govern the bank’s operations. It covers the levels of approval allowed by both the Acts and by the Treasury Regulations, and the responsibilities of various parties in terms of the PFMA and Treasury Regulations.
Section 2 deals with the delegation of powers by the CEO to Bank officials, to allow the Bank to conduct its day-to-day operations.
Section 3 covers the signing powers conferred on various Bank officials by the CEO, to allow them to exercise their delegated powers.
Section 4 addresses the Bank’s obligations in terms of the PAIA.
Section 5 looks at the responsibilities that you, the Board of the Land Bank, have under Code of Corporate Practice and Conduct proposed by the second King Committee on Corporate Governance.
9. 9 Cost consciousness
Using all our resources in the most cost effective manner
Innovation
Open and receptive to new ways of conducting ourselves and our business, seeking to continuously improve our service delivery
SUPPORTING VALUES
10. 10 The document consists of 5 sections, preceded by an introduction. The introduction explains the structure of the document and discusses how changes to it will be dealt with.
Section 1, as you can see, deals with the main pieces of legislation and the regulations which govern the bank’s operations. It covers the levels of approval allowed by both the Acts and by the Treasury Regulations, and the responsibilities of various parties in terms of the PFMA and Treasury Regulations.
Section 2 deals with the delegation of powers by the CEO to Bank officials, to allow the Bank to conduct its day-to-day operations.
Section 3 covers the signing powers conferred on various Bank officials by the CEO, to allow them to exercise their delegated powers.
Section 4 addresses the Bank’s obligations in terms of the PAIA.
Section 5 looks at the responsibilities that you, the Board of the Land Bank, have under Code of Corporate Practice and Conduct proposed by the second King Committee on Corporate Governance.The document consists of 5 sections, preceded by an introduction. The introduction explains the structure of the document and discusses how changes to it will be dealt with.
Section 1, as you can see, deals with the main pieces of legislation and the regulations which govern the bank’s operations. It covers the levels of approval allowed by both the Acts and by the Treasury Regulations, and the responsibilities of various parties in terms of the PFMA and Treasury Regulations.
Section 2 deals with the delegation of powers by the CEO to Bank officials, to allow the Bank to conduct its day-to-day operations.
Section 3 covers the signing powers conferred on various Bank officials by the CEO, to allow them to exercise their delegated powers.
Section 4 addresses the Bank’s obligations in terms of the PAIA.
Section 5 looks at the responsibilities that you, the Board of the Land Bank, have under Code of Corporate Practice and Conduct proposed by the second King Committee on Corporate Governance.
11. 11 ECONOMIC FACTORS OUTLOOK
Slow down in international and local growth
Increase in commodity prices
Increase in input costs
Increase in inflation
Increase in interest rates
Higher producer prices
12. 12 Current trends in agriculture:
To 2006, long-term agricultural profit margins declined despite overall growth in gross farming income
In 2007 profitability improved, while production costs are also rising
Removal of government intervention has exposed agriculture to inherent volatility
Increasing consolidation and sophistication among commercial farmers
Favourable opportunities for wheat, other grains (maize) and oil seeds
Livestock improvement programme of DoA
One municipality one product concept of DoA/DLA Agriculture sector performance
14. 14
15. 15
16. 16
17. 17 Historical Performance 2005 – 2007
18. 18 COST OF FUNDS
20. 20 OPERATING PRINCIPLES We operate on the principles of:
Accessibility
A network of 27 Branches
Direct and indirect lending to agriculture
Long term mortgage loans
Short and medium term production loans
Cash credit facilities to Agri-businesses and co-ops
Forming alliances and partnerships
Cooperatives and agri-businesses (wholesale funding)
Permanent staff of 613 excluding vacancies
Supporting emerging farmers
Targeting new markets
Including former homelands
21. 21 STRATEGY Stabilise the Business
Deliver on development
Review the funding model
23. 23 Management stability - Filling critical vacancies, including specialists
Restore health of staff – culture, morale and performance
Improve credit granting & monitoring processes, and policies Source Senior staff; Appoint interim consultants to fill critical areas.
Develop and Implement a change management program.
Ensure consistent communication and better employee interrelations.
Design, develop/acquire and implement an appropriate risk rating system
Ensure adequate competency levels to execute credit risk management.
Enhance credit risk management systems
Accelerate predictive modeling, application scoring and risk rating. STABILISING THE BUSINESS
24. 24 Improve internal controls and governance
Build capacity to manage risks associated with development funding
Implement Enterprise Risk Management Framework
Review Delegation of Powers
Form partnerships with Co-ops and other service providers
Internal capacity of development specialists in alignment with DoA extension officers and ARC
STABILISING THE BUSINESS
25. 25 Restructure high value non-performing loans
Maintain support to commercial farmers
Interventions to address key non-performing loans taking place to recover outstanding debts
LDFU: Awaiting Senior Counsel opinion regarding legal matters and recovering the outstanding debt– 15 May 2008
Continuing to support commercial agriculture STABILISING THE BUSINESS
26. 26 Managing operating costs
Overhaul IT infrastructure (12 - 18 months)
Review spending on consultants
Costs are being managed down
Instill culture of budget control
Implement core banking solution
Customer Relationship Management system
Risk Rating system
STABILISING THE BUSINESS
27. 27 PROGRESS TO DATE
Liquidity position of the bank stabilized
Interventions to address key non-performing loans taking place to recover outstanding debts
Stabilization of the Finance department taking place
External audit firms
STABILISING THE BUSINESS
28. 28 Employee Relations Update Sixteen (16) cases in total
General Managers Four (4)
Senior Managers Eight (8)
Specialists One (1)
Junior Managers Three (3)
Cases finalized = Seven (7)
Found guilty / dismissed:
GM Risk Fraud
GM HR Gross insubordination/negligence
Snr Manager Retail Dishonesty
Snr Manager IT x 2 Fraud
Snr Manager LDFU Gross Misconduct
Snr Manager CFU Gross Misconduct
In Progress:
CFO Gross Misconduct/Dishonesty
GM IT Fraud
Snr Manager HR Gross Negligence
Area Manager Tzaneen – Financial Irregularities
Specialist - IT Dishonesty
New Cases:
3 Administrative staff Gross Misconduct/Dishonesty
1 Operations Managers Financial Irregularities
29. 29 Critical Vacancies GM Risk
GM HR
Credit Head – Corporate Banking
Head – Internal Audit
Head of Retail
Senior Manager Finance
Contingency plan in place to ensure continuity of functions
Short term contracts
Consultants on retainer
30. 30 DEVELOPMENT
31. 31 MINISTERIAL PRIORITIES The Bank must also contribute to the implementation of Land and Agrarian Reform Policy (LARP), which has been initiated to accelerate agricultural development through a delivery mechanism that provides a “one-stop-shop” for agricultural and other support services close to farming and rural communities through (for the next two years):
Redistribution of 5 million hectares of white-owned agricultural land to 10,000 new agricultural producers
Increase Black entrepreneurs in the agri-business by 10%
Provide universal access to agricultural support services to target groups
Increase agricultural production by 10-15%
Increase agricultural trade by 10-15%
32. 32 A key element and priority of this corporate plan is refocusing the Land bank onto the development mandate
Financing emerging farmers along the value chain
Providing non-financial support to ensure success
Continuing to support commercial agriculture
Success on this development mandate is dependent on government support/grants
The Land Bank will create business centres that will focus on emerging farmer support (As per the Strauss Commission Report):
Business Centre 1: Development Finance
Business Centre 2: Commercial Finance
Increase reach inline with the 47 district municipalities
CONTRIBUTION TO AGRICULTURAL DEVELOPMENT
33. 33 PERFORMANCE INDICATORS Grow development Book by R3 billion
Profitability
Cost to income
After restructuring costs
Non performing loans
34. 34 FUNDING Recapitalisation
Government guarantees
Donor funding
DoA/DLA Grants
35. 35 CONCLUSION One-stop-shop
Stabilising the bank
Alignment with the DoA/DLA, and other stakeholders –ARC, DFI
Focus on Presidential priorities, Apex priority 7
Focus on increasing agricultural production
Long term strategy is to deliver on Land Bank’s mandate