This programme has been articulated to give value to participants and expose them to the intricacies of Microfinance banking for the purpose of efficiency and effectiveness. Competition in Microfinance banking business is on the increase and bank managers are faced with challenges of different dimensions. Current realities dictate that only Microfinance banks that strategically plan for tomorrow will survive the existing competitive operating environment that is likely to persist for a long time to come. The training programme is designed to equip participants with right tools and skills and help in no small measure in guiding participants through the stormy operating terrain and placing them ahead of competitors.
Fundamentals of budgeting and financial planning in Banks
- Types of Budgets.
- Methods of preparing budgets.
- Budget assumptions.
- Internal factors affecting budget.
- Developing proper budgeting attitude.
- Roles and functions of management in budgeting
- Budgeting as a management tool
- Budgetary control objective
Best practice budgetary process
- Analysis of operating financial and economic environment
- Choosing suitable types of budget for your bank.
- Developing and issuing guidelines and circulars.
- Budget committee meetings and budget defence.
- Preparing the master budget and its components.
- Obtaining executive approval and communicating same to business units.
- Budgeting implementation and monitoring.
- Budgeting control and the feedback loop
- Issues in budget discipline
Variance analysis for improved performance
- Information to variance analysis.
- Types of variances; income, expenses, cash, etc,
- Causes of variance and their identification
- Calculation of various types of variances.
- Follow-up action and management reporting.
- Variance analysis as a performance improvement tool.
- Emerging trends and future challenges.
Capital budgeting strategies
- Discounted Cash Flow (DCF).
- Future values and present value
- Annuities and perpetuities.
- Methods of evaluating capital investment decisions.
- Accounting rate of return (ARR) and payback.
- Net present value (NPV) versus internal rate of return.
- Equivalent annual cost (EAC) method
- Capital asset pricing model.
Profitability planning: strategic aspects of assets and liability management
- Role of forecasting in banks.
- Assets and liability management (ALM) techniques
- Framework for ALM
- Organizational framework.
- Operational framework.
- Analytical framework.
- Information reporting framework.
- Performance measurement framework.
- Regulatory compliance framework.
- Control framework.
Performance analysis and reporting for cost control and monitoring: process and procedure
- Organize data to determine full costs of offering services.
- Calculate the cost of quality, measure cycle time efficiency and identifying non-value added key processes.
- Profitability - types and balance score card
- Cost centres and cost management
- Essentials of an efficient cost management.
- Strategies of efficient cost management.
- Efficiency improvement programmes
- Strategies for achieving survival, growth and development.
For Whom: Executive and Senior Management Staff, Accountants, Budget and Planning Managers/Officers, Branch Managers, Heads of Accounts departments, and thir Senior Personnel, Auditors, Heads of Strategic Business Units, Performance Monitoring and Improvement Managers, Strategic Planning Personnel, Cost Control Managers and all others whose functional and supervisory role include budgeting, performance management and cost control functions in Microfinance Banks.
The training methodology combines lectures, discussions, group exercises and illustrations. Participants will gain both theoretical and practical knowledge of the topics. The emphasis is on the practical application of the topics and as a result participants will go back to the workplace with both the ability and the confidence to apply the techniques learned to their duties.