| Article
40 of the Articles of Association of the
Institute stipulates that the Council shall
present a report on the operations of the
Institute and the audited accounts. Accordingly,
the Council’s Annual Report and Accounts
of the Institute for the year ended 31st
December 2002 are set out on pages 1 to
12 in respect of the Annual Report and pages
13 to 24 in respect of the audited financial
statements.
Governing Council and its Committees
In accordance with Article 18(a) of the
Constitution of the Tanzania Institute of
Bankers Limited, the management of the Institute
is vested in a Governing Council whose members
shall not be less than five and not more
than fifteen. It further states that all
the Council members shall be natural persons
and shall be elected once in three years
at the Annual General Meeting of the Institute.
The present Governing Council was appointed
during the 6th Annual General Meeting held
on 3rd March, 2000 and therefore the starting
date of office for this Governing Council
was approved to be 3rd March, 2000 for a
term of three years. It is the Council’s
policy that the Governing Council members
shall rotate after every three years to
embrace new members in the composition of
the Council, but should ensure continuity
in the Management of the Institute.
The list of the current Council
members is given below:
| 1.
Governor
Bank of Tanzania - Chairman |
| 2.
Chief Executive, Azania Bancorp Ltd.
- Member |
|
3. Managing Director, NBC Bank Ltd.
- Member |
| 4.
Managing Director, Stanbic Bank (T)
Ltd. - Member |
| 5.
Managing Director, Standard Chartered
Bank - Member |
| 6.
Managing Director, CRDB Bank Ltd. -
Member |
| 7.
Managing Director, Tanzania Postal Bank
- Member |
| 8.
Managing Director, Diamond Trust Bank
- Member |
| 9.
Managing Director, Delphis Bank (T)
Ltd. - Member |
| 10.
Managing Director, Citibank Tanzania
Ltd. - Member |
| 11.
Managing Director, CF Union Bank Ltd.
- Member |
| 12.
Managing Director, Eurafrican Bank (T)
Ltd. - Member |
| 13.
Managing Director, National Microfinance
Bank - Member |
| 14.
Managing Director, Peoples’ Bank
of Zanzibar - Member |
| 15.
Executive Director, Tanzania Institute
of Bankers - Member |
COUNCIL COMMITTEES
(i) Finance and General Purposes Committee |
| |
| 1. |
Governor,
Bank of Tanzania |
Chairman |
| 2. |
Managing
Director, National Microfinance Bank |
Member |
| 3. |
Managing
Director, Tanzania Investment Bank |
Member |
| 4. |
Managing
Director, Diamond Trust Bank |
Member |
| 5. |
Managing
Director, Delphis Bank (T) Ltd |
Member |
| 6. |
Managing
Director, Exim Bank (T) Ltd. |
Member |
| 7. |
Executive
Director, Tanzania Institute of Bankers |
Member |
|
| (ii)
Education and Membership Committee |
| |
| 1. |
Managing
Director, Stanbic Bank (T) Ltd. |
Chairman |
| 2. |
Managing
Director, Tanzania Development &
Finance Co. Ltd |
Member |
| 3. |
Managing
Director, Standard Chartered Bank |
Member |
| 4. |
Managing
Director, Habib African Bank |
Member |
| 5. |
Principal,
Institute of Finance Management |
Member |
| 6. |
Executive
Director, National Board of Accountants
& Auditors. |
Member |
| 7. |
Executive
Director, Tanzania Institute of Bankers |
Member |
|
Responsibilities
of the Governing Council
The Governing Council is responsible for the
overall management of the Institute and is
responsible for the appointment of office
bearers of the Management Executive Committee
of the Institute.
In accordance with Articles of Association
and the provisions of the Companies Ordinance
(Cap 212) the Council is required to prepare
financial statements for each financial year
that give a true and fair view of the state
of affairs of the Institute as at the end
of the financial year and of the income and
expenditure of the Institute for the period.
The Council confirms that suitable accounting
policies have been used and applied consistently
and reasonably and prudent judgements and
estimates have been made in the preparation
of the financial statements for the year ended
31st December 2002. The Council also confirms
that applicable accounting standards have
been followed and that the financial statements
have been prepared on the going concern basis.
The Council is responsible for keeping proper
accounting records, for safeguarding the assets
of the Institute and hence for taking reasonable
steps for the prevention and detection of
fraud and other irregularities.
Meetings
During the period under review the Governing
Council held one meeting and deliberated on
various matters pertaining to the management
and administration of the Institute. The meeting
was held on 10 December 2002.
The Finance and General Purposes Committee
held two meetings on 19th July 2002 and 29th
November 2002 mainly to discuss the periodical
reports, auditors’ report for the half
year ended 31 December 2001 and the Income
and Expenditure Budget of the Institute for
the year ending 31st December, 2003.
The Education and Membership Committee held
two meetings and discussed the affairs of
the Institute pertaining to the ordinary education
programmes, donor funded training programmes
and other professional matters. The Committee
also considered and approved the results for
the November, 2001 and May 2002 examinations.
Administration of the Institute
The day to day administration of the affairs
of the Institute is vested in the Management
Executive Committee appointed vide Article
28 of the Tanzania Institute of Bankers Limited
Constitution.
The following senior officers of the Institute
constituted members of the said Committee:
Mr. C. J. Nyoni Executive Director - Chairman
Mr. J. M. Juma Registrar - Secretary
Mrs. M. T. Kaisi Chief Accountant - Member
Dr. C. M. Riwa Director of Training - Member
Mr. C. J. Nyoni was appointed the Executive
Director of the Institute on secondment from
the
Bank of Tanzania with effect from December,
1999.
Staff Development
During the year under review, Institute’s
employees attended short courses and seminars
in their respective areas of expertise ranging
from library activities, secretarial duties,
management and accounting conducted by different
institutions.
Membership
The Institute continued to recruit new members
during the year 2002. Corporate members were
27 members after the recruitment of Union
Bank of Africa Ltd. An analysis of the membership
position as at 31st December 2002, was as
follows: |
| |
| Category
Number |
Category
Number |
| Corporate
Members |
27 |
| Fellows |
4 |
| Associates |
31 |
| Ordinary
members |
1,163 |
| Student
Members |
56 |
| Total
|
1,281 |
|
| Training |
| (i) |
Executive
Development Programmes
During the period ended 31 December 2002,
the Institute conducted eight seminars under
the Executive Development Programme.
• Workplace Motivation for Greater Productivity.
• Prevention of bank Frauds and Finance
Crimes.
• Credit Risk Management: Loan Monitoring.
• Strategic Marketing for Financial
Institutions.
• Foreign Exchange and Money Markets
Operations.
• Advanced Credit: Monitoring, Control
and Warning Signals.
• Selling and Negotiation Skills.
• Developing Supervisory Skills. |
| (ii) |
Other
Seminars Conducted
• Financing Cleaner Production
Projects (CP4) Courses.
The Institute in collaboration with the United
Nations Environment Programme – Division
of Technology, Industry and Economics (UNEP/DTE),
Paris conducted two seminars on Financing
Cleaner Production Investments (CP4) in February
2002. One was held in Moshi for Northern Zone
and the other one in Dar es Salaam for Eastern
Zone. These seminars were funded by UNEP.
• 2nd East African banking School.
In October 2002 the Institute was a host to
the 2nd East African Banking School which
was conducted in Zanzibar between 29 October
– 31 October 2002. The Banking School
is a forum in which all the three East African
Institutes of Bankers of Kenya, Uganda and
Tanzania meet to share and learn from the
experiences of each other. Scholarly papers
on Banking are presented and discussed. The
theme for the 2002 East African Banking School
was “Banking in a Competitive Environment”. |
| (iii) |
Distance
Learning Workbook Writing Project
To enable TIOB members wanting to attempt
Banking Professional Examinations have access
to reading material a project on writing Distance
Learning materials was initiated by TIOB.
The project was funded by DFID. To date nine
workbooks have been written by indigenous
authors. The workbooks were reviewed by consultants
from Sheffield Hallam University; after which
they were sent to printers. The workbooks
will be used for the preparation of the May
2003 examinations. The workbooks are: |
| |
| 1 |
The
Monetary and Financial System |
ISBN
9987-694-01-2 |
| 2 |
Strategic
Marketing Management |
ISBN
9987-694-02-0 |
| 3 |
Principles
of Economics |
ISBN
9987-694-03-9 |
| 4 |
Accountancy
I |
ISBN
9987-694-04-7 |
| 5 |
Accountancy
II |
ISBN
9987-694-05-5 |
| 6 |
Management
and Organization |
ISBN
9987-694-06-3 |
| 7 |
Law
Relating to Banking |
ISBN
9987-694-07-1 |
| 8 |
Banking
Operations |
ISBN
9987-694-08-x |
| 9 |
International
Trade Finance |
ISBN
9987-694-09-8 |
|
| (iv) |
Adoption of a Common Syllabus of the Alliance
of African Institutes of Bankers
TIOB is a founding member of the Alliance
of the African Institutes of Bankers comprising
of 11 Institutes of Zambia, Botswana, Zimbabwe,
South Africa, Namibia, Ghana, Nigeria, Mozambique,
Kenya, Uganda and Tanzania. The Alliance’s
main objective is to develop the banking profession
in member institutes and will soon adopt a
common syllabus for the Banking Certificate
and Associateship diploma courses.
The core subjects under the Certificate and
Diploma levels were agreed as follows: |
| |
| Certificate |
Diploma |
| •
Banking |
•
International Trade Finance |
| •
Accounting I |
•
Law Relating to Banking |
| •
Introduction to Economics |
•
Accounting II |
| •
Management |
•
Advanced Economics |
| |
•
Management and Organization |
| |
•
Lending |
| |
•
Strategic Marketing Management |
|
| |
The
Alliance aims at monitoring the standard of
banking education in member Institutes and
will ensure that the adopted curriculum is
followed by member Institutes. The curriculum
will replace the existing curriculum in member
states. The banking qualification offered
by member Institutes will be accepted and
recognized by all member Institutes. |
| (v) |
Continuing Banking Education
In ensuring that the Institute provides skills
oriented training programmes, TIOB carried
out a training needs assessment within banks
and financial institutions in the country
in 2002. The Institute identified training
gaps within member Institutions and has developed
a training programme that covers 25 courses.
DANIDA has agreed to fund capacity building
for the Institute’s Continuing Education
Programme which is aimed at ensuring sustainability
of the Institute in conducting the courses.
The Banking Continuing Education Programme
will cover the following areas of training: |
| |
| PART
I |
-
Bank Credit Operations
- Trade Finance
- Customer Care
- Bank Fraud Detection and Control
- Strategic Marketing Management
- Bank Financial Risk Management |
|
|
| PART
II |
- Induction Course (for new bank employee)
- Telling Course
- Principles of Lending
- Trade Finance Instruments –
Module I and II
- Banking Operations
- Fundamentals of Foreign Exchange
- Trade Finance/Services
- Advances/Credit Operations
- International Trade Finance
- Treasury Operations
- Customer Care
- Sales Course
- Supervisory Skills Development
- Credit Risk Management
- Managing Change
- Fraud Detection and Control
- Business Strategic Marketing Management
- Business Goal Management |
| |
|
| PART
III |
-
Project Management for Line Managers
- Managing People, Managing Change
- Managing Business Redesign and Information
Technology
- Strategic Banker
- Career Development Programme
- Corporate Finance and Project Management
- Merchant Banking Operations
- Introduction to Microfinance |
| |
|
| PART
IV |
- Training of Trainers |
|
| |
In
order to enable the Institute to implement
this programme DANIDA has agreed to finance
a capacity building project which aims at
increasing the Institute’s ability and
competence in training delivery. Areas of
capacity building to be financed by DANIDA
are as follows:
• Development of Trainers from among
bank staff in the country to crate capacity
to carry out training of members in the proposed
training programmes. (Training of Trainers).
• Improvement of the Institute’s
Library Facility.
• Establishment of a training facility/room
at the Institute.
• Equipping the Institute with Information
Technology facilities.
Marketing of TIOB activities.
• Develop learning manuals (workbooks)
for distance learning.
• Training of TIOB staff. |
Examinations
The Institute continued to conduct Professional
Banking Examinations at both Banking Certificate
and Banking Associateship Diploma levels in
the year under review. |
| (i) |
Banking
Certificate Programme
In May 2002, examination session a total of
155 examination subject entries were registered
by 53 candidates who attempted the examinations
achieving an average pass rate of 37.2%.
During the November, 2002 examination session,
a total of 166 examination subject entries
were registered by 62 candidates. Out of the
62 registered candidates, only 56 sat for
the examinations achieving a 49% pass rate. |
| (ii) |
Associateship
Banking Diploma Programme
During May, 2002 examination session,
a total of 226 examination subject entries
were registered, while 71 candidates attempted
the examinations and achieved a pass rate
53.4%.
For November, 2002 examination session, 98
candidates registered and only 83 candidates
attempted the examinations. The pass rate
recorded was 50.2%. |
| (iii)
|
Graduands
For
the year 2002, 26 candidates successfully
completed al the subjects in both the Certificate
and Associateship Diploma.
These will graduate and be awarded the Banking
Certificate qualification (13 candidates)
and Associateship Diploma qualification
(13 candidates) in the 7th Graduation Ceremony
in early 2003. |
| (iv) |
Prize
Awards to Best Candidates
In recognition of high academic performance,
The Institute had developed a tradition of
awarding the best students in the Certificate
and Associateship Diploma programmes.
The tradition also continued in the year under
review with the overall best performer in
the Associateship Diploma being awarded the
1st Council Prize of USD 400. The Institute
also awarded the 2nd Council prize of USD
300 to the best candidate who scored the highest
marks in the Banking Certificate programme.
|
Library
Services and Training
During the year under review, the Institute
continued to offer library services to its
members. In the previous report, it was reported
that the library was normally congested due
to the small size of the reading room. We
are glad to report that the Institute has
acquired a bigger office space at the 10th
floor of NIC Investment House whereby a provision
has been made for spacious library and a training
room. The library will have a sitting capacity
of 40 readers at any one time while the training
room will decrease the cost of hiring a conference
room every time the Institute is conducting
a training.
Relationship with other Institutes
of Bankers
The Tanzania Institute of Bankers continued
to cooperate with other Institutes of Bankers
throughout the year 2002. Different publications
were received from different Institutes of
Bankers around the world.
The Institute maintained close working relationship
with: |
| (i) |
The
Chartered Institute of Bankers (CIB), London
and its examiners from Sheffield Hallam University
who advised the Institute in the areas of
professional examinations and workbook writing. |
| (ii)
|
The
Alliance of African Institutes of Bankers
(AAIOB) – TIOB is a founding member
of the Alliance. In the year 2001, the Institute
worked closely with other members of the Alliance
to review the syllabi in order to adopt common
syllabi for all member countries, i.e. South
Africa, Mozambique, Botswana, Ghana, Nigeria,
Zambia, Zimbabwe, Kenya, Uganda and Tanzania. |
| (iii) |
The
East African Institutes of Bankers –
The two Institute of Uganda and Tanzania continued
to conduct common Bankers examinations in
both the Certificate Programme and core subjects
of the Associateship Diploma Programme. The
Institute also cooperated with Kenya Institute
of Bankers in working out strategies which
would enable Kenya Institute join in the East
African examination system. The three Institutes
also collaborated to conduct the 2nd East
Africa Banking School held in Zanzibar, Tanzania
from 29th to 31st October 2002. |
| (iv) |
The Indian Institute of Bankers and the Institute
of Bankers Malaysia from which TIOB learned
their practices and experiences. |
Relationship with other Educational
Institutions
In the year under review, TIOB continued
to cooperate with higher learning institutions
in fulfilling her objectives. The following
institutions deserve mentioning either for
hosting TIOB examinations review programmes
or providing staff to resource TIOB training:
(i) Institute of Finance Management.
(ii) University of Dar es Salaam.
(iii) Cooperative College Moshi.
(iv) Bank of Tanzania Training Institute
– Mwanza.
(v) Open University of Tanzania.
(vi) Mzumbe University.
(vii) Tanzania Institute of Accountancy
– Mbeya.
(viii) Tumaini University.
Accounts for the Year Ended 31 December
2002
During the year under review, the overall
financial position was satisfactory. The
Institute recorded total revenue of Tzs.468.8
million. The total revenue includes grants
received in form of fixed assets released
over the expected useful life of the relevant
fixed assets. Also, generated revenue includes
grants from DANIDA and the Swiss Secretariat
for Economic Corporation (SECO) extended
to the Institute to finance training needs
assessment exercise and resource persons
of frauds seminar respectively.
Operating expenditure on the other hand,
inclusive of depreciation amounted to Tzs.421.9
million. Therefore, for the year ended 31st
December 2002, the institute realized a
surplus of Tzs.46.9 million.
The major contributing factor for this favourable
performance is a favourable expenditure
variance basically due to the fact that
the Institute had budgeted for the annual
emoluments of the Director of Training but
was recruited towards the end of the financial
year.
The total revenue collected during the year
comprised of the following sources: |
| |
Amount
Tzs (million) |
Percentage
(%) |
| •
Corporate Contributions |
313.0 |
66.8 |
| •
Membership Fees |
14.9 |
3.2 |
| •
Examinations Fee |
15.5 |
3.3 |
| •
Donation/Subsidies |
44.7 |
9.5 |
| •
Other Income |
80.7 |
17.2 |
| Total |
468.8 |
100.0 |
|
The
net assets of the Institute at at 31st December
2002 amounted to Tzs.266.1 million.
The statement of cash flow indicates a net
increase of Tzs.143.5 million in cash and
cash equivalents, resulting into a total balance
of Tzs.469.4 million as at 31st December,
2002, representing the year-end cash and bank
balances and short-term investments amounting
to Tzs.185.0 million and Tzs.284.4 million
respectively.
The growth in cash and cash equivalent balances
occurred due to revenue received in advance
in respect of the Bank of Tanzania’s
budget contribution to the Institute for year
2003. These increased funds available for
short-term investments and improved revenues
generated from interest income.
Appointment of Auditors
Article 40 of the Articles of Association
states that the Institute at each Annual General
Meeting shall appoint auditors to hold office
until the next Annual General Meeting and
shall fix the remuneration to be paid for
the services.
During the year 2002 Tanzania Audit Corporation
were the appointed statutory auditors of the
Institute. The appointment was made at the
8th Annual General Meeting held on 15th March
2002.
Conclusion
The successes obtained would not have been
possible without the contributions of the
following corporate members to the approved
budget of the Institute during the year under
review:
• Bank of Tanzania
• NBC Bank Ltd.
• National Microfinance Bank Ltd.
• CRDB Bank
• Tanzania Investment Bank
• Peoples’ Bank of Zanzibar Ltd.
• Tanzania Postal Bank
• Stanbic Bank Tanzania Ltd.
• Standard Chartered Bank (T) Ltd.
• Capital Finance Ltd.
• Diamond Trust Bank (T) Ltd.
• Delphis Bank (T) Ltd.
• Savings and Finance Ltd.
• Eurafrican Bank (T) Ltd.
• Azania Bancorp Ltd.
• Citibank (T) Ltd.
• Furaha Finance Ltd.
• Kilimanjaro Cooperative Bank Ltd.
• African Banking Corporation Ltd.
• Exim Bank (T) Ltd.
• Akiba Commercial Bank Ltd.
• Kenya Commercial Bank (T) Ltd.
• Habib African Bank Ltd.
• International Bank of Malaysia (T)
Ltd.
• National Bureau De Change (T) Ltd.
• Barclays Bank (T) Ltd.
• United Bank of Africa Ltd.
In this regard, we take this opportunity to
thank all the Institute’s corporate
members listed above for their continued financial
support in the Institutes operations.
The Institute also wants to thank all Donor
Institutions which rendered financial support
to the Institute during the period under review.
Our appreciation goes to Department of International
Development (DFID), the Royal Danish Embassy
(DANIDA), the Swiss Secretariat for Economic
Corporation (SECO) and the Bank of Tanzania
whose funding enabled the Institute to bridge
the gap between its limited budget and its
needs.
The Tanzania Institute of Bankers hopes that
the cooperation with these donor Institutions
will continue also in the future.
We wish also to record our appreciation to
all members of the Governing Council and its
committees whose wise guidance and commitment
led to the successes obtained during the year.
BY
ORDER OF THE GOVERNING COUNCIL |
D.S.T.
Ballali
CHAIRMAN |
C.J.
Nyoni
EXECUTIVE DIRECTOR |
|
DATE:
23.12.2003 |
|
