To help overcoming resistance to change by psychological facilitation of change four considerations have mainly to be taken in charge of:

Organisation of the changes:

- identifiy « credible » people who would be able to accept the project and support it,

- clarify the purposes in a language the members of all the concerned functions are able to understand,

- indicate clearly what behaviour is expected,

- change the tools (equipments, forms,),

- set up accurate trainings,

- provide coaching facilities,

- prevent any come back to the previous practices,

- test and prove the beneficial effects of the change through pilot actions,

Project time management:

- prepare the changes,

- manage so that all the needed/required means are ready on time,

- discuss the perspectives with every person concerned, so that he (or she) has enough time to “make up his (or her) mind”,

- chose the best moment to announce and engage the change,

- take and give/let enough time for the maturation of beliefs,

- plan the project by phases, to make step by step progresses, whenever the change is too important to be absorbed right away, but

- use any opportunity to go, as fast as possible,

Whenever the personnel’s resistance to change is based on a fear of what could happen, it is possible to force it to accept the changes by:

- facilitating the changes until they are as easy as possible,

- preparing what is going to happen, providing training, offering to help, saying clearly that coming back will be possible, etc.,

- telling them that, after a defined moment, no objection will be accepted any more, opposition will not be accepted and people’s opinions will not be taken too much into consideration,

- using social pressure on minorities to have them accept what they wouldn’t choose or prefer,

- setting up “non-return valves”,

- controlling in relative details and quite often what has been done,

Whenever the resistance to change is supposed to result from perceived diverging interests:

- act as early as possible to set up a culture or a climate favourable to changes,

- conceive the proposed solutions as answers to the expectancies of all the partners (what are their needs that should be taken into account, what will be their personal future),

- show concrete examples of what you have been saying,

- listen carefully to all reactions,

- discuss a lot of all what can lead to misunderstandings,

- explain the positive aspects of what is expected and show them what the benefits will be, for them,

- provide periodic feed-back of the achieved progresses (and stress all the positive aspects of what have been realised),

- have concerned persons being involved and participate in the conception of the changes (senior management must be seen to take the lead),

- give a part of responsibility in the achievement of the project to all the concerned persons,

- negotiate counterparts whenever some individuals or groups are opposed to the change (bargaining),

As one can see, there are several different (or even opposite) actions that can help overcoming resistance to change. To chose accurately what is the best approach, one has to detect what are the reasons for the resistance and to define a strategy for the intended change.

The analysis of the motives for the reluctance to change may be clarified by the use of a « Project (or Performances) Forces Analysis » (P.F.A.) to identify, list and weigh (evaluate their relative strength) the factors that will help or that will hinder changes and, thus, that have to be taken into consideration to deal with resistance to change successfully.

For example such analysis, considering a concrete change, led to the following

Of course, to define the accurate change strategy, one has first to inventory what are the interests and the forces that are to be taken into consideration and what could be the people’s main reticence to change.

To further analyse the factors that have to be taken into account and the actions that could prevent resistance to change, one can refer to the following analysis of

“ During the past fifteen years, while working as consultants in organisations in the service sector, we were confronted by many negative reactions to our suggestions to changes in the working environment, and we have for a long time looked for the right attitude we should adopt to avoid these blockages.

After briefly mentioning the frequent signs which display reluctance and outlining a brief analysis of their reasons, we are going to try here, to sum up these measures -complimentary or alternative- which we have observed in our work as they would generally warn of or help to overcome obstacles to the necessary evolution or desired changes in habits.

Firstly, we were confronted with four outward signs of reluctance:

1. Reactions of violent refusal (”Open war”)

Offended by external intrusions: “What are you going to do here? You don’t think you are going to teach me my work, do you?”

A negative interest in changing things: “What for? I don’t see why the change is necessary as it has always been done like this and it works well. It will not help us in any way. The old system suited us. It was better before.”

Rejection of continual transformations: “Another organisation. We have had enough of changes!.”

Criticism of the usefulness of the suggestions made: “That’s nothing new (we have been saying that for a long time). It’s stupid to do that (You haven’t understood a thing. You should have asked us). It’s easy to think of that, seen from your position, but it’s impossible to make it work.)

Arguments putting forward the negative points, forgetting the advantages and emphasising small drawbacks and risks: “We have already tried it and it does not work.”

Various counter propositions.

2 Destruction by indirect means:

To pretend not to be concerned: “That’s not my problem. My supervisor didn’t speak to me about it. Is it really us that have to do it? That’s for the youngsters.”

Threat: “They’re going to refuse. You’re going to have a strike on your hands within 48 hours.”

3 Sabotage:

Work deliberately more slowly or less efficiently.

Spread rumours.

Being absent at crucial times (holidays, and “face saving absence”).

Notice anomalies and not mention them (”they should have thought about it”).

4 Objections and excuses:

They (refers to either the management or unions) will never want to.

We don’t have the means.

I don’t have the time.

Wait you’ll see, the results will come later.

My staff won’t be able to do it (they won’t be capable).

But we have also seen reactions characterised by apathy, immobility, or passive resistance:

“Dragging ones feet”.

“Say that we don’t know anything, we know nothing about it, we haven’t clearly understood.

Ask to come back in one month (after the decision).

Avoidance

Obliging yes. Apparent acceptance. Feigning adherence.

Ask for a move or on the contrary stay in a place where the old method is used

Firstly, it must be noted that when faced with change, psychological reluctance is natural. In fact, all change:

results in uncertainty (the future is not written anywhere) and it entails a risk (we know what has succeeded until now, but will never know for certain the success of what we try for the first time; we can often legitimately be afraid of tomorrow, e.g. don’t changes bring about a reduction in staff numbers?).

disrupts the apathy of habits and status quo (stability and the attachment to the past) which necessitates an effort.

challenges the positive image that each of us has of himself (”I am efficient, as my past record shows. The questioning of my methods means therefore, that I was always wrong to do it this way! If our methods today are archaic I am not “responsible ” for letting them still be used. An underlying sentiment of guilt, often prompts us to put the “blame” on others).

Luckily other psychological tendencies act the other way round:

curiosity creates an interest for everything that is new or unknown

certain solutions (modern, sophisticated, having had a known success) can influence and sometimes strongly, due to “fashion”

the charisma of the person who recommends the changes can be convincing

Nevertheless all change is felt more or less consciously as an aggression, this therefore provokes reactions which vary according to the balance of power:

escaping or evading if I feel weak: “let’s speak about something else”

defensive protection: ” perhaps but it’s not possible; in theory it’s valid, but not in practice;

it does not work in a company such as our own; we have already tried it without success; “they” will never agree to that; etc.”

counter attack if I think I can throw out (the idea) with another one

A certain number of measures can be taken to neutralises these inevitable reactions. They basically fall into two categories. But before presenting them it must be remembered that to accept any change there are two prerequisites:

- the credibility of the person who proposes it. This depends on his image: being seen as one who has positive intentions and the capability of having a constructive influence, which means to a great extent access to dialogue and the personal conviction of the person responsible for the change implementation.

- the choice of the right moment and timing: alternating fast and determined actions with necessary pauses for breath.

Once a favourable climate for change has been created we then need to:

1 “sell” ones recommendations:

Show links between what is being proposed and the persons’ concerned needs and expectations, in order to PERSUADE them and obtain their adherence by putting forward the advantages to which they are receptive.

Argue to CONVINCE by logic and a precise preconceived action plan (who does what, by when ). This reassures the listeners to accept the validity of what is being suggested.

Present the conclusions in such a way that they attract the attention, arouse the interest and CAPTIVATE. A presentation based on the S.P.R.I model may help. At a time of change, employees:

- are already thinking of other things. You must therefore “get them on the same wavelength” by immediately pinpointing the SITUATION that you are going to speak about. have many preconceived ideas concerning the solutions to apply. It is necessary to demystify their prejudices by rapidly reminding them of the PROBLEM which we have to deal with (what is wrong and what needs to be done) and objectives of the proposed changes.

- have little time given to the subject that preoccupies you. It is therefore important to get to the point quickly and state the RESOLUTIONS proposed to the problems that you are trying to solve.

- will not be immediately convinced that what you are proposing should be done. That is why they need to be given INFORMATION on the problem concerned, the reasons for the actual observed difficulties and the possible alternatives, along with their respective advantages and disadvantages, as well as a method of implementation for the chosen solution, which controls resulting changes and allows adjustment as situations change.

A review shows that there can be two types of reasons for apathy:

2.1 If the reluctance is provoked by fear (not to be able to do it, of being criticised), it is essential to start by REASSURING the persons concerned:

- state that the implementation will be progressive and the complete implementation will be preceded by an experimental “pilot project”,

- insure an easy follow through: explain and take account of reactions,

- training, and assistance,

- guarantee an exit – go back in cases of continued dissatisfaction.

But it is not all about creating a favourable atmosphere. Fear provokes emotional tensing which freezes the positions. One can therefore only obtain a reaction by issuing imperative orders. One must force a move either by being under obligation, blocking an easy return to old methods, controlling activities, using a driving force (e.g. model leaders) or social pressure.

2.2 If the reluctance is due to the perception that there is a divergence of interest or a lack of knowledge concerning possible foreseen improvements, it would be better, in this case to involve the persons concerned in the conception of the changes.

If one associates them in the study, the conclusions will be partly theirs. One will have their agreement on a common position. This will help to avoid any lack of understanding and misunderstandings which sometimes have the effect, wrongly, of allowing change to be viewed negatively, mobility for example, requires, admittedly, an effort but it can also open up new opportunities.

All the same optimal personnel participation in the preparing of changes varies from one stage to an other:

take into account their concern in determining the problems

collect information from them, as they are the ones who know

ask for validation (or adjustments) explanations and criticisms

invite, without censuring, all their ideas for improvement

organise contribution to the choice of solution

delegate authority in the implementation and follow up of progress

Despite all this, opposition to change is sometimes real. The acceptance by the persons concerned necessitates negotiation or compensation.

One can therefore say that, depending on the degree of consensus, one goes from confrontation in the search for agreement, to consultation which gives value to the suggestions made, or co-decisions from dialogue, ultimately to more or less autonomy.”

Furthermore, success in changing working conditions may require using self-assessment approaches, supported by pair evaluation, to help the concerned people to identify what are their practices they have to challenge.

In that perspective, we are sure that the tools we have been suggesting to use, can be appropriate for improving to-day’s C.I.S. banks.

Overall and complementary suggestions for the improvement of the means that can help changes in the C.I.S. banks.

We could add three points concerning the help of the C.I.S. banks to change.

Concerning the international funds providers five more suggestions can be made.

There are questions about the roles actually assumed by the Project Management Units (P.M.U.), that are supposed to be in charge of:

ascertaining local needs,

managing the delivery process.

We have heard several times about the need for a better co-ordination between the different Technical Assistance programs, projects and institutions (and even a need for more communication between the projects and TACIS). Besides transverse projects such as Ebtra, institutions like the recently-funded European Banking and Finance Institute (EBFI) are precisely supposed to assume activities as an interface between eastern and western banks.

It has also been noticed that the Terms Of Reference (TOR) often suffer from various shortcomings. Sometimes they are hastily compiled and do not sufficiently reflect the real needs of the beneficiaries.

Often, also, the time-lag between needs definition and the take-off of the project appears to be too long. Thus is it necessary to adopt a flexible project design in the Terms Of Reference to meet the needs of the recipients.

We found that many bankers are still unaware of what western help or assistance is available to be provided. In fact, very few respondents were familiar with E.C. projects. The National/Central banks and the Banks’ Associations could be considered as able to help to spread information.

We have several times mentioned the M.O.C. modules that have been set up by Ebtra. We are actually convinced that they can be very useful. But, it has, however, to be mentioned that they need to be trained by rather experienced trainers who are senior bankers and able to cope with group dynamic processes. The gap between western trainers and local trainers in terms of methodological and communication skills is still ovious. Local trainers are not yet prepared to run these seminars independently from any western support. But one could train local experts in the use of theses materials.

Future improvements sometimes lack continuity:

It could be drawn, more often on the consultants’ accumulated knowledge of the recipient organisations. Follow-up and additional missions should be proposed, whenever it could be useful, to previously booked advisers.

At least, consultants on existing contracts should be systematically asked to make recommendations on Future Technical Assistance Requirements (FUTAR) of the recipient organisations they have been working with.

To end with it, let’s recall that all has to be done so that every assisted operation could be the start of a process which can multiply itself through local resource

For instance, a model of learning usually goes through three steps:

- assimilation, e.g. integration of new knowledge,

- accommodation, e.g. modification of behaviour,

- equilibration, i. e. balancing aspiration between maintaining and changing.

Thus, one should take into account at least two kinds of factors:

First of all, the relationships of the different concerned parties with the expected change. That is to must understand the favourable and unfavourable aspects of the existing institutional and social system.

Then, one will have to find the accurate actions to deal with the unavoidable (individual and group) resistances to change.

Analysis of the social system.

The probability of the success in changing depends on the degree of divergence of interests between the concerned parties, the power (force) relationship between them.

An analysis of the dynamic structure of the existing social system has thus to be established:

- Who are the « actors »?

- What do they want?

- What are their respective powers?

- How is the work organized in the considered institution and what are the relationships between its members?

- What strategies have been chosen by the leaders?

- What are the H.R.M. practices in use?

- What does the culture interiorised by the staff make them choose and refuse?

- How far should the existing system be considered as having rigid characteristics?  Etc.

Somehow, a culture supportive of change should be fostered, heroes of change identified, and a clear vision enunciated, a careful listening to the reactions has to be maintained, a set of required behaviours has to be developed and intensive communication has to be fostered in order to preserve cohesiveness.

For instance, let us describe the most frequent positions of the three most important « actors » that we found in the C.I.S. banks (local bank’s managers, westerners, and local bank’s staff) have then to be taken into consideration.

The local bank’s managers:

Commitment, involvement and support of the banks top management is fundamental for the achievement of the required changes: « if top management do not change, the banking system will not change ». Some people told us that « top management is the biggest problem in terms of change ». Thus, all interventions should be made conditional on top management support.

But, previously, the top management has to be trained to assume efficiently all its functions (« only one fourth of them have the conceptual skills needed »), despite the fact that top management tends usually to be very busy.

Some specialists consider that the professionalism of senior management can be improved only by more exposure to Western thinking, that is spending time in Western banks. Thus, important people should be sent abroad. In fact, to date, the concentration has been on taking top management people to Western countries to see banks there. The results were not always very positive. It is why we suggest that it would be useful to encourage more meetings (even between local top management and their counterparts in Eastern European countries (such as Poland, Hungary, etc.) that have had a similar recent history) and more working together on common (or shared) transverse projects.

This means offering them conferences and courses dealing with all the possible weaknesses of their management (see table, here after) and, usually, mainly with:

- understanding macroeconomic changes, anticipating the results of economic policies, elaborating strategic vision and planning, establishing strong cooperative relationships with authorities, developing his own ability to implement plans,

- establishing strong teams, working well with staff (to build trust) and people (Human Resources), developing staff’s motivation (including introducing financial incentives),

- analysing and implementing the useful organisational optimisations,

- managing changes, etc.

Then, the top managers should be convinced that their own involvement is important.

The C.I.S. banks have also become more conscious of the importance of the involvement of their new and middle managers and of the improvement of these managers’ efficiency to achieve their changes (see table, next). This requires developing a systematic approach to bank management, a better understanding by the banks’ managers of their roles and an improvement of their capacities to assume them. Specifically, it seems that they should be trained in:

basic banking skills and qualifications (« training and practical experience in these topics remain a high priority »), concrete marketing bases, planning, internal controls and audit, despite the fact that they are still not perceived by C.I.S.’ bankers as major insufficiencies, even if most banks are looking for M.I.S. systems, organisations optimisation and « projects management methods » and aptitude to learn from mistakes, local staff management: communication skills, good teamwork (« team building is going to become more and more important »), motivation (« management has very little experience of reward relationships »), adaptation of personal leadership style.

For instance, Ebtra’s Management Of Change module named « How to develop managerial skills and best organisation practices » provides concrete answers dealing with such topics as:

- managers’ (technical, economical and social) roles and functions,

- problem-solving, creativity and decision-making processes and methods,

- elements of strategic diagnostic and planning,.. and of risk management,

- tools to find improvements of an existing system, organisation or structure,

- principles of human relations: communication, motivation of staff and leadership,

- approaches to set the staff’s objectives, to follow-up the results and to conduct performance appraisals and to contribute to Human Resource management (training of the members of the team).

Further management trainings can be developed to deal, for instance, with task distribution, delegation, team building, conflict handling, coping with stress or reporting systems.

The westerners

Specific difficulties may arise considering the relationship between the C.I.S. bankers and the western consultants. We have already mentioned most of them. However, in technical assistance, partnership and integrated cooperation between western and local experts is an important factor. Building-up trust is thus crucial. It should be a priority in the preparatory phases of the project and recommended attitudes in the interpersonal relationships should be taught to western consultants.

The local bank’s staff

Their attitudes and the way they are managed (H.R.M. policies and practices) also have to be taken into consideration. For instance, it may be useful to manage so that salaries are performance related.

To achieve this change of attitudes in the C.I.S. banks’ management and staff, training in psychology, motivation and human relations is becoming necessary.

To successfully achieve the required changes, the C.I.S. banks should also increase and adapt the knowledge’s and skills of their staff. Their need for training covers:

- professional technical knowledge’s, banking norms, legal aspects and regulations, etc.

- all the basic aspects of modern technology (P.C.’s,),

- ability to work with colleagues and customers and also foreign languages,

- discipline, accuracy and self-control (high quality execution of tasks) and sense of responsibility,

- self-improvement (desire to develop one’s professional qualifications),.

Nevertheless, it should be mentioned that the right level of transfer must include the practical use of what is learnt: sometimes local staff has the right theoretical knowledge, but when it comes to applying it, does not know how, what forms should be filled in, etc.

But, first of all, the C.I.S. banks’ staff has to be willing to change and, thus, aware of the necessity of changing.

Some specialists consider that to encourage employees to use their initiative, the best approach might be to have specialists from Western banks (or from Eastern European banks which have had similar experiences) spend time in local banks.

The needs for management improvement in c.i.s. banks

Management training in the eastern states should primarly cover such topics as.

Knowing one’s (potential) clients: up-dating a network of relationships, identifying and understanding their needs, their expectations, and their requirements, conducting a market study: sampling, analyzing and interpreting data, etc.

Defining the vocation of the considered entity. Elaborating a diagnosis (prognosis) of its possibilities:

- the opportunities and threats offered by its environment —> challenges,

- its past performances,

- its inner strengths and weaknesses —> distinctive features

And designing the main orientations of its strategy and establishing its business plan:

- Choosing one’s wanted clients.

- Offering the right products, tailored to reach customers’ needs.

- Calculation of the right prices.

Setting-up medium range objectives and action plans, and choosing an accurate implementation process.

Marketing the offer: highlighting current advantages, selling, and negotiating optimum conditions. Organizing products delivery and customer follow-up.

Organising the work, identifying the tasks, defining and describing the duties, and the limits of delegation. Setting up complementary teams for various projects. Etc.

Controlling the manpower (gaps between the jobs requirements and the employee’s abilities and competences) and hiring adequate staff (considering their skills and motivations), and organizing the reception of the new staff.

Establishing efficient administrative procedures and circuits, and coordination means or tools between the different units (departments, branches, etc.).

Putting a team together and managing it: the styles to adopt within the hierarchical relationships with the personnel, etc.

Defining the objectives devoted to the team and to individuals.

Planning the vacations (holidays).

Managing a budget: forecasts, financial control (incomes (fees and charges), wages, facilities (buildings and equipments) and research and advertising and communication, etc.).

Controlling the time tables, and optimising the productivity and overall efficiency.

Personal achievement follow-up (monthly report) and performance appraisal interviews.

Carrying out negotiations on the remuneration and salaries progressions.

Constructing training programmes to improve individual performance and organizing internal on-the-job-training, and dealing with cross cultural gaps.

Comparison of the three main ways to support changes

To help choosing the most helpful support to implement specific changes, the above observations should be translated into an operational tool which could be useful in identifying how to proceed most efficiently

How to choose the more appropriate way to implement changes.

See what are the characteristics of your project and their recommended corresponding means (« X »). Then totalize the scores in each column to know what could be the best way to prepare the changes you are intending to implement.

Twinning is an integrated program of Technical Assistance between western and eastern banks, through bank development partnership, covering all aspects of a Bank’s operations (for instance, the twinning programme can include assisting the recipient bank to define its requirements for I.T. hardware and software).

Ebtra reviewed actual experiences of banks who took part in previous twinning programs to identify major lessons arising from these.

The suggestions that were found are presented in Ebtra’s manual entitled « Guidelines for the organisation and implementation of bank twinning programmes ».

Several conferences were also held by Ebtra on this topic in different C.I.S. countries.

The lessons these researches bring are summarised here after.

Desirability of twinning (usefulness and specific advantages):

Twinning is actually very efficient to transfer to bank staff, skills and practical expertise in all core banking disciplines, through close day-to-day working relationships and assistance. Local bankers work closely with the Western experts for a long period of time in the agreed areas of co-operation. This supplies an opportunity for a practical transfer of concrete skills and brings the most comprehensive support, to strengthen the whole bank. Twinning introduces a kind of international partnership. In fact, it offers some “coaching”, the usefulness of which appears to be less known. Some of the most frequently noticed advantages of twinning are:

It can have a wide range of purposes and, thus, use very different methods.

It is nevertheless always implementation oriented (« hands on ») with practical guidance (the focus is on implementation and not just recommendations, but the western banks’ role is to recommend, not take the decisions on change).

It can, thus, help to prepare for privatisation.

It also opens further co-operation possibilities. It may open the possibility of broader linkages between the two banks.

For the involved western banks it provides opportunity for international business (e.g. trade finance) and for joint business together with the local bank partner.

But the risk is that it is less pedagogically efficient.

The main hindrances of twinning appears to be the fact that it requires management time: it appears to be difficult for managers to combine their every day duties with their time-consuming « twinning » responsibilities.

Feasibility (conditions for success) of twinning projects. The experience of more than twenty twinnings (see annex) shows that their success rely deeply on:

- clear initial definition of the results that are expected, and building of a structure (see table, hereafter) and business plan,

- mutual interest and benefits for both the local and the foreign banks involved. One must never forget that there should be some clear benefit for the Western bank involved,

- allowance of sufficient means (twinning is rather expensive and time consuming), that is:

- enough time has to be available for assimilation of skills and knowledge, so that change become effective (for instance 5 man/year per year during 2 years in the N.L.B. (Slovenia) project. Compared with the 30 weeks of consultancy input, per functional area, usually necessary to bring out sustainable change),

- and enough funding: A twinning program in a bank is likely to cost $ 5 million to cover a 2 years period,

Good correspondent relationships and a real partnership (and sustained commitment) between the two banks concerned

- twinning needs to be approved by the very senior people in both banks. The involvement of the Presidents is necessary. Thus the executive of the foreign bank should visit the recipient bank. In fact, a proactive management is required to ensure the necessary sustained commitment for the full duration of the twinning project,

- visits, workshops and familiarisation, involving senior and middle management from both banks, should be scheduled, to prevent potential misunderstandings or, even, disputes. These encounters and discussions are important, coupled with enthusiasm, confidence and trust, as strong bank to bank links help to avoid misinterpretations and to sustain the momentum. Therefore, it is critical that all the staff in the recipient bank are kept fully informed about the project. The purposes of the project should be established with participation of those directly concerned within the recipient bank. Departmental heads in the recipient bank should be encouraged to develop working relationship with their opposite numbers in the foreign bank. A good relationship between the module leaders is necessary. These interbank contacts should include cultural contacts as, if cultural empathy can be established between the two banks, sustained commitment to the twinning project is more likely. This “chemistry” between the foreign and the local bank should be well established and sustained throughout a long-term multi-dimensional project, which could evolve into a permanent mutually beneficial business relationship. From that point of view, taking a share in the C.I.S. partner bank would help.

Accurate and realistic design and content of the project:

- early thorough preparation in advance, by all parties -avoiding as much as possible unrealistic expectations- and planning are vital,

- an « inception stage », lasting up to two months, is also useful in order to refine and review the definition of the expected results (the output that has to be achieved) and of the work plan (a detailed scheduling of the work has to be set up). The results to be achieved in each module will be defined in the Terms Of Reference document, which is often produced about one year before the twinning project begins. Thus conditions and priorities could have completely changed and should be brought up-to-date.

- sequencing/logical ordering of the modules to avoid overload periods (plan the work in such a way that it can be absorbed by the recipient bank), but also to avoid wasting time and to allow enough time for efficient transfer of knowledge,

- careful overall project (and change) management (using a tight but simple methodology) and effective joint co-ordination and problem resolution. For that purpose, a project manager should be appointed by the recipient bank. He should be a member of the Management Board. A steering committee has to be set up. Each module should have a leader from each bank, at the concerned department head level.

- constant follow-up, frequent control and good quality monitoring of the project achieved results, so as to anticipate any problem,

Complementary aptitudes of the two concerned banks, that is:

- general qualification of the consultants, including their adequacy for the assignment and experience in C.I.S., ability credibility and confidence. It remains unlikely that western banks send their best elements abroad, until they have strategic projects in the C.I.S. countries. There is thus a risk that the « experts » in charge of twinning projects are the less competent, or, at least, that the only bank willing to engage in twinning projects are those who have, in fact, created a consultant firm aside their banking activities and make a business out of it*.

- preparation of the western bank’s specialists: even if significant changes in the local methodologies and practices are required in order to meet international standards, it is unlikely that the straight importation of a « western system » is appropriate. Experience shows that one cannot successfully impose western ideas or solutions. Customisation to meet local requirements is needed, as a minimum. Thus, the western bank’s experts must work hard and make efforts to study the culture of the recipient bank. To avoid that implementation of recommended solutions is delayed, there is a need for the western consultants to be aware of the local factors, and to take into consideration the specificificities of the banking environment. They have to understand local conditions and demonstrate it, in particular, the way responsibility of decisions is or not delegated.

For its part, the local bank should be capable of handling the twinning process, that is of being ready for wide ranging Assistance Program. The recipient bank should have developed to an extent that makes it able to benefit significantly from twinning and have sufficient capabilities. Thus the importance of a previous diagnostic screening/study that confirms the necessary prerequisite to select banks which could positively participate:

- its solvency,

- its sufficient management team and structure,

etc.

- last, both partners have to be very flexible.

Thus, the ideal selection, choice and accreditation of the best twinning partners should come from taking into consideration many elements (intensive screening of the risk factors, compatibility, empathy, openness, etc.). But we could add that, ideally, twinning partners should be similar types of banks. It would often be more appropriate if the western partners involved could be banks which have experienced the same problems, i. e. mainly small banks in countries that have similar sectoral economic concerns (for instance where agriculture or tourism are dominant).

Considering its costs and complexity, twinning requires support and guidance.

This is why, for instance, in Russia, the World Bank has developed the Equipment Support Program (E.S.P.), funding I.T. procurement, computers and application software’s, and the Financial Institutions Development Program (F.I.D.P.) to provide technical assistance.

So, the major conditions for success of twinning programs are:

A stable local situation is a prerequisite. For instance, the recipient bank should:

be sufficiently stable,

have developed to a point where it would benefit from twinning,

have a management able to handle a twinning project,

Thus, a diagnostic process has to be used to establish the suitability of local banks.

A sound process of choice of the right twinning partners is a key factor:

carefully define the criteria for the selection of Donor banks which could work well and co-operate fully with relevant C.I.S. banks. It would be, for instance, desirable to have, as twin partners, banks similar in size and operations.

A good preparation in advance (of middle management) and pre-training of all project personnel are necessary: many problems encountered in twinning partnerships were traceable to shortcomings in the preparation. For example, enough time has to be devoted to:

establishing a sound and clear contract for a long-term agreement (usualy 3 years). Ebtra has defined guidelines for that,

carefully planning and phasing the project: designing and sequencing the work modules,

selecting appropriate people from both banks to work on the project (good people are needed in charge of each module. For instance, local project manager should be a member of the bank board),

etc.

A deep understanding, by the western bank, of local business environment and culture and a close mutual human confidence in the partners. Ownership of the twinning program should be achieve by both banks. Building links, trust and commitment between the two banks (and their module leaders) is, thus, important. Therefore, it is necessary to ensure good communication at all levels through exchange visits and joint team work. Then, often, the western banks acquires equity stakes in their local partners and this is the start of long-lasting friendships between persons and institutions.

A systematic use of project management approach. For instance one has to make sure the plan includes sufficient flexibility to adapt to changing circumstances, and the programme should be refocused every 6 months, after a review of progress.

Nevertheless, the public pressure may slow the twinning process. Though, the specific functions and roles that have to be dealt with between government and banking communities have to be carefully defined.

Moreover, there is obviously a need for better co-ordination between the different existing funding agencies, twinning facilitators and organisations involved.

Anyhow, twinning relies on relationship. It is therefore necessary to find representatives and create a local network structure of Russian speaking experts in the different C.I.S. countries, fostered to ensure dissemination.

The twinning of training institutions specialised in banking would then be particularly useful.

The content of twinning programs

A twinning project really consists of between 10 to 15 modules, many of which are running simultaneously:

Business strategic planning: process of competitive analysis, agreement on future business directions, definition of priorities, identification of the resulting specific goals for each major area of the bank, setting a concrete program for the implementation of these decisions, etc.

Structure and organisational development: identify the required staffing levels and main skill requirements, definition of functions, missions, responsibilities, etc.

Financial management: accounting system, budgeting process, financial reporting and control, but also finance markets and treasury operations (risk management) and Asset & Liability Management.

Loans and credit risk management and control: policies, processes, project finance.

Information Technology: evaluation of the bank’s existing hardware architecture and systems, determination of an I. T. strategy, suggesting the most effective, and particularly the most cost-effective, engineering and development methodologies, Management Information System,

Marketing: analysis of markets, customers expectations, definition of target segments, design of products, Human Resources Management: recruiting, remuneration, incentives, performance and potential appraisal, individual development planning, transfer and promotion, succession planning

In fact, an analysis of the reasons for the success or failure of restructuring projects shows that technical assistance inside the banks, through tailored advice for individual banks, integrated multi-dimensional interventions that deal with the full range of development needs of a single bank and intensive hands-on consulting in specific fields like, for instance, human resources and Management Of Change, has become a priority for future improvements.

So, local consultancy capabilities must be built.

A keen interest has been expressed in this business advisory services or bank advisory units (such as E.B.A.S.), which becomes considered to be one of the most useful means for the C.I.S.’ banks improvement.

Despite of that, many banks still do not want advices, suggesting them what they need to do. They would prefer instructions to recommendations. Our conclusion would be that consultants fot C.I.S. banks should no more be in charge of producing reports!

It would be much more convenient to use on-the-ground consultancy, with focused assignments, that can provide short term solution and help solving specific day-to-day problems.

Thus the roles of the bank “support units” (and their local agencies) should be cautiously defined. For instance, they could provide also long term assistance, but that requires a precise definition of their commercial relationship and contracts.

Despite of that, self-sustaining Bank Support Units based on Banks’ Associations have not always received the support of local banks. Banks’ Associations can only be appropriate counterparts for Bank Advisory Services, if they have reached a degree of maturity that allows effective co-operation among their members in order to reach common goals.

It is also possible to:

link training and consulting services (training should necessarily be accompanied by intensive hands-on consulting): bank training centers and advisory services could collaborate in order to develop tailor-made programmes with combination of courses with in-house training and consultancy and implementation phases during which trainees are coached on-the-job by their trainers to facilitate implementation in their respective banks, develop in-house consulting teams.

In all cases, the conditions for the effectiveness of these advisory resources must also be set up. For instance, there is a need for funding, as local banks cannot afford to pay for western consultants and consultants can only work successfully if they receive support from the recipient banks’ top management.

This is why Ebtra has elaborated a “Management Of Change” module called « Creating and developing a support unit or a technical assistance center » to bring all the basic knowledge’s needed to set up such a structure. It is divided in two parts, the main elements of which are:

Strategic management in a service sector advice center:

Market research, identifying potential clients, analysing the needs of the banks for restructuring advice and understanding their requirements

Setting up and up-dating a network of relationships within the banks to be able to identify their present and future needs – know your market.

Analysing the banks’ opportunities and strategies, looking for existing and future weaknesses.

Assessing the market size for each service.

Assessing the actual business opportunities

Designing the right products for the technical assistance center to provide.

Identifying the competition to provide such services locally.

Calculating prices (considering the conditions for a consulting firm to survive) and considering budgets for such services.

Determining how to become a partner of multinational projects.

Defining the Technical Assistance Center’s aims and limits.

Internal analysis of the consulting firm’s strengths and weaknesses

Review of available resources within their environment, compared with its staffing requirements.

Would it be useful and possible to set-up a permanent team of consultants? What are the opportunities to find (and, possibly, select and recruit), in the C.I.S., a core team of adequate consultants, in all the key areas?

What are the conditions needed to build up the required capabilities, within the staff employed now or available (improved through a strong “internal training” programme)?

What are the remaining needs for future foreign/external technical assistance?

Determining the target markets and products

Providing programs designed to respond to the needs of the local banks (how to offer the right products).

Discuss the priorities, and the means) to carry out specific services.

Define the appropriate range of services – advisory, consultancy, audit, research, monitoring, coaching, etc.

Devising and formulating a strategy for future development and preparing and establishing a three year business plan (timing, actions, resources) including:

- analysis of the possible timing of development – including a description of an action plan and timetable,

- evaluation of the cost of development (structure and investment) and setting-up of the operating budgets, for each period.

Conceiving the optimal organisation of the Technical Assistance Unit, adapted to respond to the local needs: listing roles and responsibilities, designing its internal organisation and structure (defining and describing duties and developing job descriptions, procedures and controls), determining resource requirements,

Commercial management of a service unit:

Hiring commercial staff and establishing a network to market and sell their services. Establishing commercial aids, such as brochures to highlight service specifications.

Establishing relationships with potential customers

How can one identify potential clients, and key business influencers (who may not be obvious) and establish relationships with them, so as to widen a professional relationship network, at all levels in the industry (general management, human resources management, operational management at head office and branch levels, as well as any unofficial hierarchies)?

How to use contacts through the telephone?

How to prepare visits, negotiate, write a commercial proposal, and sign commercial contracts?

How to prepare a customer file, and manage follow-up of customers?

Methodologies and service materials

Evaluating the impact of all the preparation stages:

Designing approaches and methodologies for each type of service.

Developing a documentation center.

Determining methods and designing working programmes.

Preparing aids and having them printed and edited.

Designing the action plan of a specific project:

Writing terms of reference.

Formulating a reply to a tender bid, and choosing the best supplier of a specific programme.

Working with (local) sub-contractors.

Organising the work of a group of consultants

Allocating, defining and describing duties.

Defining the limits of delegation, and individual objectives.

Setting up complementary teams for various projects.

Organising premises.

Relationships and coordination of activities and units (departments, offices, etc).

Setting up and managing a team of consultants: the management of the consultants (meeting commitments, providing aids, etc.), has a crucial influence on performance. The main tasks that are to be taken charge of:

Hiring adequate staff.

Determining appropriate salaries.

Putting a team together and motivating it – adopting the right “leadership styles” within the hierarchy, particularly between junior and senior specialists.

Organising and running staff meetings.

Training one’s own staff (either consultants, or administrative), and organising internal on-the-job trainings.

Managing Human Resources: optimizing work and holiday planning, dealing with grievances or, even, conflicts.

Conducting personal achievement follow-up (monthly reports): organising performance appraisal interviews, dealing with poor performance, and constructing development programmes to improve individual performance.

Managing improvements in performance and the efficiency of a support unit.

Administrative management of a service unit

Setting up premises.

Ascertaining that equipment is available and in good working order.

Buying and installing computer systems to manage commercial, planning and accounting activities.

Organising the reception of the clients and the smooth running of contact.

The financial management of a technical assistance center

Calculating actual incomes and costs, and comparing them to norms.

Balancing accounts.

Refunding of expenses.

Building up and controlling budgets.

But, identification of suitable local trainers often appears to be quite difficult: Although there are qualified candidates with sufficient academic background, they often lack bank experience.

Moreover, it is important to identify people who do not only have the required know-how and bank experience (in order to be accepted by trainees), but who also have specific training skills. To attract them, a training center shoud give local trainers a stable employment, a competitive salary and attractive incentives and career perspectives.

There still remains the need to provide good monetary and non-monetary incentives in order to foster long-term collaboration between training centers and local trainers: rewards for courses with high participants ratings, further engagements provided, to have the opportunity to be sent abroad is a powerful incentive, etc.

There is also a problem concerning disponibility, as many local trainers are bank employees. Hence, il is necessary to convince banks that they benefit from their employees training activities: trainers do acquire new skills and new techniques through teaching. Often, one learns even more being a teacher instead of a student. Banks may also get additional prestige vis-а-vis other banks, if their employees prove to be skilled trainers Instead of that, banks’ scarcest resources remain their skilled employees. Nowadays, they are needed to manage and operate their rapidly growing and frequently unstable business. Indeeed, in this environment, banks are often unwilling to pool such resources and find it difficult to make their key staff available for training.

However, no matter how good trainers are, their contribution will be limited if they are not managed properly and motivated or if their work is not supported within the organisation. »

A more structured approach for the achievement of the self-sustainability of local training centers would then be beneficial to all concerned. It will be based on their aptitude to improve their:

- marketing and public relations strategies (to make their supply better known),

- local trainers (western trainers cannot be paid by the revenues raised),

- development of diversification of their offered training products,

- systematic long-term education programs (well structured long-range approaches, training programs, curriculum and guidelines for the bank staff),

- business programming and management.

This may partly rely on co-operation between training centers: exchange of information, very concrete common activity plans focussing on future development of joint projects, exchange of course materials (redundancies when creating new material -for instance glossaries- should and could be avoided).

But as inter-banks seminars are not usually the most effective to bring about changes, it is necessary to insist also on the importance of developing internal training courses (that can often be considered as one of the most performant possible assistance practice) designed to meet specific needs.

There is thus a need for the improvement of in-house training capacities. In order to gain more flexibility, some C.I.S. banks have already developed their own training programs, other build up internal training departments to train their staff. After course fees had been introduced, the response has been less intensive and banks have built up their own training facilities. We even think that most of the training efforts should be, more and more, task directed and « on-the-job » trainings. This is why Ebtra has conceived its M.O.C. module named « Developing in-house training capacities ». We assume that this module can there be of a great usefulness as it describes all the main functions of the job. « This course has actually being designed to help in the conception and management of training, in association with external experts. It covers topics such as « managing an in-house training department » or « preparing training programs and materials and introducing « training the trainers » facilities to increase the training resources, etc. » (see detailed summary of this module in Annex 2).

Obviously, western course material often has to be adapted. This is why some schools (R.B.T.C., Tashkent, for example) have introduced “Faculty Development” weeks, during which western and local trainers discuss existing training material and develop it further. Upgrading and creating course materials actually requires joint work, as « development of innovative products will, in medium term, not be possible without the support of western trainers and consultants who provide the necessary know-how ». That is not to say that the initiative of local trainers is not useful for the development of new courses. On the contrary, trainers’ efforts to improve their products is very important and should be rewarded by the development of a payment scheme that gives substantial incentives to trainers who develop their own training material. And experts have to experience a learning process during which mutual understanding is built up.

The main problem often is choosing the relevant teaching methodologies.

Sometimes, western best practices (modern interactive approaches) simply cannot be used in C.I.S. banks.

One has first to consider the fact that some participants show reactions that it is difficult for not experienced trainers to deal with. For instance:

Some are complacent and believe they have nothing to learn and need no assistance with anything because they know how to do everything.

Some are good listeners but believe that the situation in C.I.S. is so very different that nothing westerners will say will be relevant.

There are also intercultural differences in learning processes: often the participants are quite passively waiting to listen to presentations of very precise solutions, but sometimes, also, there are reject reactions from local bankers concerning the tendency of some speakers to «talk down» to them, giving them the impression that they «knew nothing». Then, the participants want to be actively involved, the case studies, exercises and role plays (compared to reading and lecturing) are felt as beeing especially effective and are appreciated. The development of the curriculums should, thus, be carefully done and improved.

In fact, «our experience has shown us several times that eastern managers are not used to western ways of learning and teaching methods. They are used to academic training. In fact, they were accustomed to knowledge beeing vertically transmitted, handed down from top downwards, with ideological underpinnings, and being received without discussion. They have, therefore a preference for learning techniques based on formal presentations, with a definitive answer approach. So, they have:

- a tendency to assume that that there must be “laws” governing development, which can explain socio-economic performances. They do think that there must be normative orientation towards management activities,

- the conviction that they are here to learn, not to discuss their problems! They are unfamiliar with participative learning, based on sharing common difficulties and experiences,

- no perception that there could be, among others, different ways of perceiving things and different ways of being successful,

- difficulties of self-involvement in role plays,

- little true perception of the necessity of continuous training.

These reactions are intensified by the fact that many managers from banks are sent for training only because, according to the existing standards adopted by the Central Bank, specialised banking education is necessary to attain certain management positions.»

When the relevant objectives have been defined and motivation of the bank and the trainees obtained, there are still several things to do to ensure the effectiveness of the training: choosing accurate pedagogical approach, elaborating efficient training tools, obtaining participation of the most adapted trainers, etc.

Let us discuss the first of these points, before coming back, next, to the others.

It is also important to choose the right training methods and use the right methodological approach when conducting courses,

For instance, in order to enhance their usefulness, the courses ought to be purpose-oriented, the trainings should be well coordinated, the trainers should prepare themselves (for instance, through the already mentioned preparation weeks for western trainers) and specific target groups should be defined -along with criteria for the selection of the trainees- so that homogeneous audiences (not having heterogeneous levels of knowledge and expectations) can be formed. To reach concrete on-the-job outputs, the groups being trained should be as homogeneous as possible, in terms of type of bank and level of seniority. Thus, in running seminars, efforts should be made to ensure that those attending come from similar backgrounds and have similar problems and functions within their organisations.

Ebtra’s Management Of Change module on « Educational planning » presents a more complete identification of the organisational conditions for training transfer and effectiveness, selection of pedagogic methods, development of course schedules and of course materials, measurement of the effects of training, etc.

But it is mainly Ebtra’s Management Of Change module « How to make the best use of training » that covers all the conditions for training effectiveness: « This course is based on the “Training for results” process developed and used by the C.F.P.B. and intended to satisfy two complementary conditions:

- the quality of the training itself, its conception and distribution,

- the quality of the application of what has been learnt – its integration into the working environment.

It should be added that the effectiveness of training also depends on the quality of its organisation and management”

We noticed, first, that there is an obviously increasing need for materials available, translated into Russian, for self-education and distance learning: text-books, manuals, handbooks and video productions or film tools for training. There is actually a growing demand for such materials and it would be useful to set up banking libraries, reading rooms for employees, etc. But, here again, this requires a previous adaptation.

It can, moreover, be a precondition in order to increase turnover and/or to be able to charge higher course fees. In fact, since the introduction of course fees for bank training in C.I.S. countries, there have often been less managers and staff participating in the courses.

In the C.I.S., as of today, it has proved to be difficult to generate sufficient interest and commitment for training. Not all banks realise the importance of such an approach and take part in the process of training and building up the required qualified staff for the transition period. How can one increase the interest of local banks in training (and consulting) products?

Let us first try to understand the specificities of the motivation for training process in the C.I.S. banks. We have, for instance, observed that « despite the level (or amount) of the needs, if the training of eastern managers has often proved not to be very efficient, it was mainly because things went as if the managers’ willingness and capacity/ability to absorb and apply western management skills was restrained by several motivational factors. We still need therefore to find out how to implement western management knowledge in the C.I.S. organisations.

That requires us to be able to overcome those underlying factors which prevent success. We could, for instance, take into consideration the following negative aspects of eastern managers’ motivations for training:

For some of them, if not for most of them, the participation on a course means above all an all-expenses-paid trip, a distraction is their major purpose. Therefore they do not attend to the courses very carefully, they do not pay much attention to what they are taught, and they hardly try to apply anything in their professional lifes.

Most eastern managers feel there is some kind of urgency for them to catch solutions and tools that could be immediately used in the conditions they are facing, in their own professional environment. They have no interest in theoretical aspects, and would, therefore, reject any lecture where the practical side was not immediately obvious. Whatever does not appear to be directly applicable is felt as irrelevant, thus boring, leading to people reading newspapers during the courses (”just as we used to do in Party meetings”). Even the most open minded eastern managers admit huge difficulties in relating theory to practice and thinking about how to apply management concepts into their environment.

Even if they would not agree with it, we several times felt that many eastern managers have ambiguous attitudes induced by the “fear of the Great Unknown”: wariness about acclimatizing to the new economic realities, fear of new ideas and practices, deep anxiety about change, etc.»

The obvious conclusion of these observations is that motivation for training depends mainly on the involvement of the bank’s management.

Sometimes, bank executives and top managers (who, in most banks, were initially central bankers) lack awareness of the necessity of permanent training, clearly do not consider training of great use for their banks, and are still reluctant to send their clerical staff to courses. We know, in some banks, cases of absolute unwillingness and conservative approach, towards training of staff members, on the part of top management. It will thus remain crucial to raise awareness about the necessity to manage change and the commitment for training among the top management of banks. For that purpose, it is possible to organise a workshop for banks’ top management and executives on the management of change.

Commitment of beneficiaries’ immediate management is also sometimes lacking. Contacts to the middle management of banks should be improved in order to increase training demand.

The active involvement of Human Resources Managers is also very useful. Through implementation of workshops with personnel managers, in order to develop their consciousness about their functions in the banks, it is possible to develop convincing arguments in favour of more training and to strengthening the personnel departments’ position vis-а-vis their respective top managements.

Finally, the motivation for training can be enhanced by working in collaboration with Banks Associations and Central Banks concerning the development of vocational standards for banking staff. The existence of such standards quite naturally leads to more demand for bank training.

Knowledge of the needs: needs definition has too often been hastily compiled and defined without active co-operation of the concerned banks’ top management. Thus there have been insufficiencies in the initial problem-definition and a specific improvement is required in this process.

Changing needs: a concrete observation of C.I.S. projects shows that the needs of local banks have changed a lot in the course of the last years, from being very basic, to highly specialised, as of today. Due to the change of the market, the needs of the remaining banks become more specific and their expectations concerning the quality of trainings increases. Consequently, the demand for bank training changes considerably. At present, even during the course of the programs the needs defined in preparatory workshops changed over time. Thus, the profiles of the courses have to be adapted. Ability to provide courses that satisfy the changing needs of the clients is becoming determining.

But, we often observed that the recipient banks had important difficulties in defining what they needed. The C.I.S. banks seeking assistance seldom seemed to be well placed to know precisely what assistance they need. Of course, everybody is often, at once, reluctant to recognize what he or she needs. But, when the objectives are not well defined, the question of acceptability soon arises: the impression that the intervention is unwelcome results mainly from the fact that the local bank is asking for assistance simply because it is available, not necessarily because it needs it.

There is, thus, a recognised need for assistance in identifying, specifying and defining what help/support is actually needed and to whom it should, most beneficially, be provided and how best it might be delivered. This is why we estimate that it is necessary to set up an action plan to improve the identification of problems and the understanding of banks’ training needs, suggesting methods that can be used to inventory and understand the actual needs of the local banks’ personal (skills gaps but also observation of the way the tasks are done, which requires visiting the work places to see what the bankers do and how they do it). For such a purpose, it could be useful for trainers to establish personal contacts within the banks, visiting them frequently and working closely with them, to collect the consciously perceived and expressed needs.

But it would also be useful to ensure that these needs are accurate, by organizing follow-ups or a posteriori surveys of what has been applied or used at the end of the courses, and of what were the difficulties and the achieved results and usefulness’s of what has been learnt.

To improve the training needs definition of C.I.S. banks, Ebtra’s Management Of Change module named « Educational planning » suggests practical approaches to define educational needs, purposes of courses and pedagogic goals: for instance, one must try to adapt employee’s qualifications to the fulfilment of all (future) job requirements, to prepare institutional (technical, legal, structural, marketing,) changes and/or to sustain company’s (new) strategic orientations and plans (in terms of level of ability, or of performance, or of type of job behaviour, etc.), etc.

But, previously, a good problem setting should have been done. Another Ebtra’s Management Of Change module (« How to make the best use of training »), may be useful here. It stresses, for instance, that « at the company level, one can consider an inventory of business purposes, and strategies which has, at least, three different dimensions:

The study of suitability of employees to performance demands through an analysis of strengths, weaknesses, successes and problems. This requires a knowledge of the tasks to be achieved.

The contribution of training to strategic management objectives, or operational objectives (planning, development plans, projects, etc.) and to achieve the desired results, in terms of productivity, quality, etc.

The positive preparation for future change (in products, markets, technology, careers, etc.), or other improvements in the future, which would be assisted by early preparation. »

To complete the bankers’ awareness of their actual (training) needs, it can also be useful to call for the help of:

- advisors (their analysis often highlight the initial requirements),

- Central Banks and national banks associations (even if, nowadays, they are seldom able of providing support, since they are understaffed and lack experience),

- other informal networks of observers.

Thus is it necessary, for instance, to be able to rely on strong Banks Associations. Providing assistance for the development of Banks’ associations, is, therefore, a way to make the required changes of the C.I.S. banks easier:

Many elements of banking systems demand co-operation, for instance credit insurances or stock markets organisation.

Banks’ Associations are also the main mean or instrument for establishing mutual understanding and co-operation between Central/National Banks and the community of commercial banks. They have a major role to play in order to improve lobbying Government/regulatory authorities, in regard to revisions to the regulatory and legal frameworks for commercial banks.

Some Banks’ Associations also intend to build up a consultancy service for their members.

But they first have to develop their own structures and can benefit of cooperation through a kind of twinning arrangement with Banks’ associations from Western countries. We would thus recommend to support the process of institution building of Banking Associations.