IFC Advises Bai-Tushum and Partners Microfinance Bank on Corporate Governance
IFC, a member of the World Bank Group, is helping Bai-Tushum and Partners, a leading microfinance bank in the Kyrgyz Republic, improve its corporate governance practices, part of an effort to support smaller business across the country.
IFC will provide the lender with an in-depth training program to help strengthen internal communications and encourage dialogue between bank management, its board of directors, and shareholders. The training will focus on the bank’s corporate secretary, a key position within the organization. That is expected to help Bai-Tushum and Partners, the country’s first microfinance bank, reach out to smaller businesses, a key part of the Kyrgyz economy.
“We are focusing on establishing a good corporate governance system in order to comply with the legislation of the Kyrgyz Republic and best international practices in the banking sector,” said Gulnara Shamshieva, CEO of Bai-Tushum and Partners Microfinance bank/
The lender, a long-time IFC investment and advisory client, received a banking license on November 14, 2012. IFC, through its Central Asia Microfinance Transformation Support Project, has advised Bai-Tushum and Partners on the transformation from a microfinance organization to a commercial bank.
“It is critical for the newly-designated microfinance bank to establish proper internal practices and procedures, particularly those related to the corporate secretary functions,” said Sergii Tryputen, IFC Project Manager. “A strong corporate secretary position will ensure good corporate governance practices and the smooth running of the company.”
This initiative is a part the IFC Central Asia Corporate Governance Project, which is implemented in partnership with UKaid. The project helps local joint stock companies and banks strengthen their corporate governance practices to increase their ability to attract financing and manage risks.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit www.ifc.org.
About Bai-Tushum and Partners Microfinance bank
Bai Tushum was originally established in 2000 by ACDI/VOCA, a US-based international development organization, with the support of United States Department of Agriculture (USDA), United States Agency for International Development (USAID), and CARITAS, a Swiss relief agency. Over the past 12 years, the company grew to one of the leading lending institutions in the Kyrgyz Republic, with total assets of $100 million. Today, Microfinance Bank Bai Tushum and Partners is the seventh largest bank in the Kyrgyz Republic serving over 30,000 clients.For more information, visit www.baitushum.kg
To learn more about UKaid, visit www.dfid.gov.uk.