Corporate social responsibility
The Bank “Bai-Tushum and Partners” throughout the history of its existence takes active part in assistance of social and economic development of the country, steadily being guided by international practices of corporate social responsibility in its activity, and seeking to make the significant contribution for increasing of the population welfare and sustainable development of regions through starting of socially significant programs.
Social Investments
The special direction of implementation socially significant programs of the Bank is the supporting of women-entrepreneurs in regions within social project KIVA. For 2012 with support of KIVA Fund, the Bank funded projects of over 900 women- entrepreneurs for regions of Kyrgyzstan with low interest rate with to 2 year terms.
Total amount of funded projects constituted exceeding 68 mln. som. In comparison with 2011, the growth of loan portfolio within the KIVA project constituted 220%. In 2012 jointly with KIVA fund, the Bank started the easy loan product for start-up business, oriented to women and the youth. Another easy loan product was the loan “Force-majeure”, which provided funding of population suffered from force-majeure circumstances in order to recovery lost businesses. In 2013 within of this project is planned further expanding of inclusion women, and implementation of new products, particularly “The Green Loan”, which are for funding ecological projects, contributing to reducing the energy expenditure, minimization of waste products and environmental pollution, and loan for education.
Contribution to economic development of regions through provision of accessible funding to small and middle business, which is the base of the Kyrgyz economy is the important component of social investments of the Bank, because particularly in this segment is observed demand of funding. The Bank having the large experience of working with regions, recognizing specifics and demand, in the reporting year continued to give further financial and non-financial support to entrepreneurs, allowing them to form effective relationships, to increase standard of life, to create new working places, and to contribute to expansion of business scale of clients. In addition, the creation of working places is one of the main components in social investments of the Bank. Thus, according to the results 2012 were additionally created by clients of the Bank 43 828 working places. The average cost of creation and keeping 1 working place for the reporting period is 47 700 som or 1 015 USD. Moreover, according to statistics, 1 client creates more than 3 working places.
Responsible funding
The provision of qualitative service, high service level, integrity and transparency relationships are the main objectives of the Bank for building sustainable and mutually beneficial relationships with clients. The activity of the Bank is based on three major directions: following “Client Protection Principles”, careful study on satisfaction and permanent support of feedback. This considered and responsive approach, allowed corresponding to requirements and expectations of clients.
It should be noted that the “Bai-Tushum and Partners” is actively working within of the international campaign “Protection Clients Rights and Interests Principles” since 2009. During this time “Client Protection Principles” were implemented in all business processes of organization, allowing to protect low income clients from unprofitable financial services and to provide high quality service. Moreover, the Bank received the award for the best practice of realization of “Client Protection Principles” in the field of mechanisms realization “Transparency” and “Mechanisms for complaint resolution”, founded by Microfinance Centre and Smart Campaign.
This confirmed that tools are used by the Bank on collecting complaints and offers, allow to react quickly, and in due time to take measures for problems solution of clients and introduction of new service mechanisms.
The priority activity of the Bank is the increasing of financial literacy of clients that they could not only use fully modern banking services, but also make the informed decisions of choice of the financial partner, undertake the corresponding actions on the questions influencing family financial welfare.
The program of individual consultation, provided by the Bank “Bai-Tushum and Partners” since 2012, is oriented to low income families, and combines aspects of economic education, development of entrepreneurial skills and approaches. Particular attention of the program is development skills on planning and family budget controlling, management of incomes and expenses, financial goal setting and financial plan development, approaches and possibilities of savings, and reasonable loans. Within of financial literacy program, 113 active clients of the Bank passed group trainings of practical skills development on incomes and expenses management, financial goal setting and financial plan development, and 986 clients received individual consultation on financial literacy in all branches. In 2013 the provision of financial education will be reflected in loan processes and will be realized in all stages of services. The provision of financial consultations is the new step to development of relationships with clients in financial market, and also timely decision in modern conditions of lending development in Kyrgyzstan.
Social projects
Since the foundation of “Bai-Tushum and Partners”, participation in charity and sponsorship projects take special place in social activity, which confirms the commitment to the best traditions of sponsorship and serves the evidence of financial sustainability and stability. In 2012 the Board of Directors of the Bank “Bai-Tushum and Partners” made decision on borders expanding of charity and support of projects contributing to improving standards of life in regions of Kyrgyzstan. Thus, there were appropriate funds in amount 10 mln. som for funding of social significant projects, contributing to development of economic potential, social infrastructure of regions and supporting of child care social facilities. After investigation of the most urgent problems in distant regions, the Bank selected for funding and successfully completed 5 social projects in Talas, Chui, Jalalabat and Naryn oblasts.
Project №1. The Kindergarten “Seitek” in Panfilov region, Chui oblast
The kindergarten “Seitek”, which is located in village district Kurama of Panfilov region of Chui oblast, is for 120 places. After reconstruction the kindergarten is needed in equipment. “Bai-Tushum and Partners” allocate fund to the kindergarten in amount 286 650 som for purchasing of kitchen equipment and domestic appliances. On the allocated funds for pupils of the kindergarten were purchased all necessary items: bedding, household appliances, ware sets, equipment for dining room, stationery, educational accessories, carpet products, toys and many other things.
Project №2. Residential treatment center «Kelechek» in Isyk-Ata region, Chui oblast
In this residential treatment center “Kelechek”, which is located in the village Kirgshelk of Isysk-Ata region of Chui oblast, reside 47 orphan children aged from 5 till 16 years. The building “Kelechek” during winter period was heated by heating devices but the sewerage system did not work. The Bank “Bai-Tushum and Partners” allocates funds in amount 493 972 som for complete overhaul of heating and sewerage system of the center. In October of 2012, all repair works were completed, and children started to live and study in more comfortable conditions.
Project №3. The School № 33 name of R. Ismanaliev in Suzak region, Jalalabat oblast.
The School # 33 name of R. Ismanaliev is located in the village Bagysh of Suzak region of Jalalabat region. After several spring mud streams, the school was in a critical condition. It was necessary to update floors, to repair roof and ceiling, to replace heaters and asphalt schoolyard. Thanks to sponsorship assistance of “Bai-Tushum and Partners” in amount 322 320 som were conducted all necessary construction works. In November of 2012 was the inauguration ceremony of the new additional school building opening. Today the doors of the school are again open for pupils.
Project № 4. The Playground in Talac city, Talas oblast
One of the successfully completed social projects of the Bank, directed to improving standards of living of population and social infrastructure of cities is the new playground in Talas city, for which the Bank allocate funds in 200 000 som. The playground is equipped in the yard of multi-storey housing with 360 family living. The inhabitants of the residential district took active part in design of the playground and the choice of the place of its arrangement. The inauguration ceremony of the playground with participation of the city mayor and oblast administration representatives took place on December 6.
Project № 5. The repair of irrigational system in Kochkor region, Naryn oblast
In the village Kum-Dobo in Kochkor region of Naryn oblast reside over 6000 inhabitants. Annually due to lack of sufficient water volume, the inhabitants of the village lose large number of harvest, approximately 200 ton of corns and 600 ton of potatoes. The Bank allocates fund in 900 000 som to the local community for repairing of irrigational system of the village with setting additional pump for increasing bulk water transport. The water supply will start from beginning of the sowing season in 2013.
Thus, in 2012 for social projects were spent over 2 214 mln. som and next year the Bank continues to realize started projects in 2012, and also selection of new projects, which will be related to improving infrastructure and access to drinking water in regions.