The objective of this TA Project was to assist Beichuan VTB to develop into a competitive and commercially sustainable microfinance institution serving mainly the lower segments of the market, particularly the rural clients.
- Product Improvement: Help the VTB improve the design of credit and other relevant financial service products targeted to micro and small clients; propose risk acceptance criteria and pricing for different credit products and train the staff;
- Credit Management: Establish/ improve the credit policies, processes and procedures; develop appropriate credit tools such as credit scoring; document the agreed procedures and tools in the form of a Credit Manual and train the staff on credit culture;
- Branch Management: Advise the bank on branch expansion;
- Risk Management: Develop risk management strategies, systems and capacities; recommend risk concentration limits; set up an independent risk management function suitable for a microfinance bank; and provide appropriate trainings to the managers and the relevant staff on risk management;
- Training: Delivery of training workshops for the senior & middle level managers, loan officers and other key function officers in the core capacity areas;
- HR Management: Help the VTB to improve its key HR systems adapted to the microfinance operations, such as job grading, performance evaluation and incentive structure; and to develop and implement a HR policy and procedural manual;
- Internal Controls: Help the VTB to strengthen its internal controls system in line with the best practice in microfinance; and grow up an independent and effective internal audit function line; and
- Responsible Finance / Social Performance: Help the VTB to develop a Responsible Finance Strategy including monitoring indicators; and assist the VTB to implement the strategy and prepare a semi-annual Responsible Finance Report.