Академический Документы
Профессиональный Документы
Культура Документы
Submitted To:
Prof. Yaseen Jamal
Submitted By:
Group 1
1- Sidra Saleem ( 11 )
2- Noor-ul-ain (09 )
3- Bano Shah ( )
Program:
MBA (semester 6)
Date:
11-Feb-14
Table of contents:
Preface ----------------------------------------------- 7
Acknowledgment -------------------------------------- 8
Project objectives-------------------------------------- 9
2
Deposit Products--------------------------------- 22
Profit & Loss sharing term account------------------ 22
Consumer finance-------------------------------- 22
Electronic banking-------------------------------- 23
Services---------------------------------------- 24
Agriculture credit-------------------------------- 25
Trade finance----------------------------------- 25
Competitors ----------------------------------------- 26
Introduction to all departments------------------------- 26
Division of labor--------------------------------- 30
Span of control---------------------------------- 30
Communication--------------------------------- 31
3
Support function-------------------------------- 34
ATM function----------------------------------- 35
Information security function---------------------- 36
Network functions------------------------------- 38
MIS/Web function-------------------------------- 39
Development function---------------------------- 40
Project development function---------------------- 42
Procurement function----------------------------- 42
Primary responsibilities--------------------------- 45
Secondary responsibilities------------------------ 48
Hardware Software and Networking at BOP--------------- 49
Hardware-------------------------------------- 49
Software--------------------------------------- 59
Networks-------------------------------------- 52
How BOP uses its hardware software and networks---- 54
Online presence------------------------------------- 59
Information Technology Security-----------------------59
Branch office---------------------------------- 59
Head office----------------------------------- 63
Backup procedure----------------------------------64
References ---------------------------------------- 72
DEDICATION
Preface
In this era of technology we cannot name even a single business
which can operate without information technology. In fact now a
days success of any business is dependent on proper utilization
and upgrading of its management information system.
The term is not new to the banking sector. Since the early 80s,
banks have been using this terminology to refer to the process of
generating various reports and analyses at the Corporate/Head
offices for decision making for own use as well as for convenience
to authorities in charge of regulation.
MIS in the present context of high availability of voluminous data
on electronic media at diverse locations and on diverse platforms
has become more pertinent to banks decision-making process,
thanks to the availability of new tools of technology such as data
warehousing, data mining. Management Information System would
thus be the end product of both the processes - data warehousing
and data mining.
Acknowledgments
Sidra Saleem
Samreen Ejaz
Rabbia Shakeel
Shereen Salam Ghouri
Syeda Sana Zahra
DATE: 11.2.2015
Project Objectives
Every project is done with certain objectives kept in mind. Our
study on Management Information System at Bank of Punjab was
to determine:
History
10
Type
Public
Industry
Banking, insurance
Founded
1989
Lahore, Pakistan
Headquarters
Lahore, Pakistan
Key people
Naeemuddin Khan,
President
Khalid Timizey, Deputy
CEO
Moghis Bokhari, Head
HR
Shahid W. Mahmood,
Chief Risk Officer,
Mustafa Hamdani, Head
Transactional Banking
Azhar H. Dilawari, Head
Information Technology
Products
Financial services
Revenue
PKR 17,752
Million (2009)[1]
Net income
PKR 6,616
Million (2009)[1]
Number of
employees
6,092
Website
www.bop.com.pk
[2]
11
Vision Statement
To be a customer focused bank with service
Excellence
Mission Statement
12
Our Customers:
As our first priority
Profitability:
For the prosperity of our stakeholders that allows us to
constantly invest, improve and succeed
13
Excellence:
In everything we do
Integrity:
In all our dealings
Respect:
For our customers and each other
Awards:
14
GOALS:
To achieve its objective the bank aims to:
Ensure that its performance in all facts of its operations more
than matches that of its competitors.
Maintains a comprehensive range of domestic and
international activities.
Maximize contributions from its key sources of personal
machines brands representation and capital.
Be innovative progressive and the need of its customers with
in the frame work of operational and prudent risk taker.
Act as a reputable efficient and responsible organization.
Pursue personal policies which recognize the aspirations and
performance of individual and which are suited to the devise
levels of skills.
15
Corporate Governance
INTRODUCTION
Corporate governance is the set of processes, customs, policies,
laws, and institutions affecting the way a corporation (or company)
is directed, administered or controlled. Corporate governance also
includes the relationships among the many stakeholders involved
and the goals for which the corporation is governed. In simpler
terms it means the extent to which companies are run in an open &
honest manner.
BACKGROUND
As mentioned earlier, the term corporate governance is related to
the extent to which the companies are transparent & accountable
about their business. Corporate governance today has become a
major issue of interest in most of the corporate boardrooms,
academic circles & even governments around the globe.
19th Century
In the 19th century, state corporation laws enhanced the rights of
corporate boards to govern without unanimous consent of
shareholders in exchange for statutory benefits like appraisal rights,
to make corporate governance more efficient. Since that time and
because most large publicly traded corporations in the US are
incorporated under corporate administration-friendly Delaware law
and because the US's wealth has been increasingly securitized into
various corporate entities and institutions, the rights of individual
owners and shareholders have become increasingly derivative and
dissipated. The concerns of shareholders over administration pay
and stock losses periodically has led to more frequent calls for
corporate governance reforms.
20th Century
17
World War 2
The expansion of US after World War II through the emergence of
multinational corporations saw the establishment of the managerial
class. Accordingly, the following Harvard Business School
management professors published influential monographs studying
their prominence: Myles Mace (entrepreneurship), Alfred D.
Chandler, Jr. (business history), Jay Lorsch (organizational behavior)
and Elizabeth MacIver (organizational behaviour). According to
Lorsch and MacIver "Many large corporations have dominant control
over business affairs without sufficient accountability or monitoring
by their board of directors."
1970s
Since the late 1970s, corporate governance has been the subject of
significant debate in the U.S. and around the globe. Bold, broad
efforts to reform corporate governance have been driven, in part, by
the needs and desires of shareowners to exercise their rights of
corporate ownership and to increase the value of their shares and,
therefore, wealth. Over the past three decades, corporate directors
duties have expanded greatly beyond their traditional legal
responsibility of duty of loyalty to the corporation and its
shareowners.
1990s
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1997
In 1997, the East Asian Financial Crisis saw the economies of
Thailand, Indonesia, South Korea, Malaysia and The Philippines
severely affected by the exit of foreign capital after property assets
collapsed. The lack of corporate governance mechanisms in these
countries highlighted the weaknesses of the institutions in their
economies.
2000s
In the early 2000s, the massive bankruptcies (and criminal
malfeasance) of Enron and Worldcom, as well as lesser corporate
debacles, such as Adelphia Communications, AOL, Qwest, Arthur
Andersen, Global Crossing, Tyco, etc. led to increased shareholder
and governmental interest in corporate governance. Because these
triggered some of the largest insolvencies, the public confidence in
the corporate sector was sapped. The popular perception was that
corporate leadership was fraught with greed & excess. Inadequacies
& failure of the existing systems, brought to the fore, the need for
norms & codes to remedy them. This resulted in the passage of the
Sarbanes-Oxley Act of 2002, (popularly known as Sox) by the United
States.
DEFINITIONS OF CORPORATE
GOVERNANCE
19
20
22
The following sections of the Act contain three rules that affect the
management of electronic records.
1) The first rule deals with destruction, alteration & falsification of
records.
3) The third rule refers to the type of business records that need to
be stored, including all business records & communication, which
includes electronic communication also.
24
Sec 802 (a) (2) states that, The Securities & Exchange Commission
shall promulgate within 180 days , such as rules & regulations, as
are reasonably necessary relating to the retention of relevant
records such as work papers, documents that form the basis of an
audit or review, memoranda, correspondence, other documents &
records (including electronic records), which are created, sent or
received in connection with an audit or review & contain
conclusions, opinions, analyses or financial data relating to such an
audit or review.
2.
Auditor Independence
3.
Corporate Responsibility
4.
5.
6.
7.
8.
9.
Title IX consists of six sections. This section is also called the White
Collar Crime Penalty Enhancement Act of 2002. This section
increases the criminal penalties associated with white-collar crimes
and conspiracies. It recommends stronger sentencing guidelines and
specifically adds failure to certify corporate financial reports as a
criminal offense.
27
Bank and that the firm and all its partners are in compliance with
International Federation of Accountants (IFAC) guidelines on code of
ethics as adopted by the ICAP.
20. The statutory auditors or the persons associated with them have
not been appointed to provide other services except in accordance
with the Rule Book of Pakistan Stock Exchange (PSX) and the
auditors have confirmed that they have observed IFAC guidelines in
this regard.
21. The closed period, prior to the announcement of interim/final
results, and business decisions, which may materially affect the
market price of Banks securities, was determined and intimated to
directors, employees and stock exchange.
22. Material/price sensitive information has been disseminated
among all market participants at once through stock exchange.
23. We confirm that all other material principles enshrined in the
CCG have been complied with except for the following, where the
corresponding provision(s) of The Bank of Punjab Act, 1989 have
been complied.
Lenders
Shareholders
31
Shareholders:
Share Value & Profit
Management:
Survival & Job Security
Lenders:
Debt security, low risk
Society:
Environmental/Economic Issues
32
SHAREHOLDERS RIGHTS
The shareholders enjoy the rights and benefits provided for in the
Commercial Companies Law which include but not limited to
Receiving dividends
Receiving share of total company assets on liquidation
Receiving annual report of the company balance sheet
Disposing of their shares and acquiring priority in subscription
to the new shares issued by the company
Filing suits for invalidating any resolution passed by the
General Meeting or the Board of Directors in violation of the
law
Public order or the Memorandum or Article of Association
Examining the record of the company and obtain copies of the
same in accordance with the terms and conditions of the
company regulations.
One of the major shareholders rights is participating in the
decision making and management of the company through the
shareholders meeting which has an important role to play in
the governance of the company.
Being the parliament of the company the shareholders
meeting is empowered by law to exercise control and
supervision over the company through hearing, discussing and
passing resolutions on various reports and recommendations
submitted by the Board or the auditors.
The Commercial Companies Law and the Corporate
Governance Code place sharper focus on the shareholders to
ensure that an effective and responsible control of the
company is being exercised by them.
This object is attainable through attendance of the
shareholders in greatest number to the shareholders meeting
and active participation in exercising the rights conferred on
them by the Law and the Code.
33
Minority Shareholders
The term Minority Shareholders means those who dont control the
management of the company or select its directors.
The decision making process for running the business of the Bank is
subject to the majority vote of the shareholders or directors as the
case may be; majority decision is expected to consider the rights of
the minority shareholders.
The following rules have been developed in compliance with the CBB
requirements in order to protect all shareholders in general and
minority shareholders in particular:
1- The Controllers shall make considered use of their position and
shall fully respect the rights of minority shareholders. The Chairman
and the Directors are required to encourage this attitude.
2- The Controllers and other shareholders shall understand their
responsibilities regarding their (a) duty of loyalty to the Bank, (b)
responsibilities regarding conflicts of interest, and (c) the right of
minority shareholders to elect specific Directors under the Company
Law.
3- The shareholders or the directors resolution shall not violate the
shareholders rights and obligations as set out in the Commercial
Companies Law or the Memorandum and Articles of Association of
the Bank.
4- The business of the Bank shall be conducted in a fair manner in
accordance with its Memorandum and Articles of Association and the
conduct of the business shall not prejudice the interests of the
shareholders in general or of the minority shareholders.
5- The resolutions of the majority shall at all times aim at achieving
and safeguarding the best interests of the shareholders
6- The majority shall not pass or ratify resolutions which are likely to
expose the Bank or any of its assets to unnecessary risk or grant a
Director a direct or indirect personal interest in contracts or
transactions to which the Bank is party, without approval of the
shareholders.
34
Notices
35
Board Of Directors
A board of directors is a body of elected or appointed members who
jointly oversee the activities of a company or organization.
Other names include:
Board
Board
Board
Board
Board
of
of
of
of
of
governors
managers
regents
trustees
visitors.
Appointment of directors
The ultimate control as to the composition of the board of directors
rests with the shareholders, who can always appoint, and more
importantly, sometimes dismiss a director. The shareholders can
also fix the minimum and maximum number of directors. However,
the board can usually appoint (but not dismiss) a director to his
office as well. A director may be dismissed from office by a majority
vote of the shareholders, provided that a special procedure is
38
Delegate to management
Delegate authority to management, and monitor and evaluate
the implementation of policies, strategies and business plans.
Determine monitoring criteria to be used by the board.
Ensure that internal controls are effective.
Communicate with senior management.
Responsibilities of directors
Directors look after the affairs of the company, and are in a position
of trust. They might abuse their position in order to profit at the
expense of their company, and, therefore, at the expense of the
shareholders of the company.
Consequently, the law imposes a number of duties, burdens and
responsibilities upon directors, to prevent abuse. Much of company
law can be seen as a balance between allowing directors to manage
the company's business so as to make a profit, and preventing them
from abusing this freedom.
40
41
42
43
Audit Committee
An audit committee is a selected number of members of a
company's board of directors whose responsibilities include helping
auditors remain independent of management.
PURPOSE
To assist the board of directors in fulfilling its oversight
responsibilities for
(1) The integrity of the companys financial statements,
(2) The companys compliance with legal and regulatory
requirements.
(3) The independent auditors qualifications and independence
(4) The performance of the companys internal audit function and
independent auditors.
The audit committee will also prepare the report that regulatory
rules require be included in the companys annual proxy statement.
AUTHORITY
44
External Auditing
o Review the external auditors proposed audit scope
and approach, including coordination of audit effort
with internal auditing.
o Review the performance of the external auditors,
and exercise final approval on the appointment or
discharge of the auditors. In performing this review,
the committee will:
At least annually, obtain and review a report
by the independent auditor describing the
firms internal quality-control procedures; any
47
o
o
o
Compliance
o Review the effectiveness of the system for monitoring
compliance with laws and regulations and the results of
managements investigation and follow-up (including
disciplinary action) of any instances of noncompliance.
o Establish procedures for:
The receipt, retention, and treatment of complaints received by
the listed issuer regarding accounting, internal accounting
controls, or auditing matters.
The confidential, anonymous submission by employees of the
listed issuer of concerns regarding questionable accounting or
auditing matters.
48
makes the physician better and more effective. Hidden problems can
be discovered early and dealt with before they grow into something
dangerous.
53
Reporting
o Understand and approve managements definition of the
risk-related reports that the committee could receive
regarding the full range of risks the organization faces, as
well as their form and frequency.
o Respond to reports from management so that
management understands the importance placed on such
reports by the committee and how the committee views
their content.
o Keep risk on both the full boards and managements
agenda on a regular basis.
o Coordinate (via meetings or overlap of membership),
along with the full board, relations and communications
with regard to risk among the various committees,
particularly between the audit and risk committees.
o Disclose in the companys Integrated Report how it has
satisfied itself that risk assessments, responses and
interventions are effective.
Credit Rating
While acknowledging the improvement in financial health of the
Bank, M/s Pakistan Credit Rating Agency (PACRA) has assigned
Positive Outlook to long term and short term ratings of AA- and
A1+, respectively.
As per standard rating scale and definition AA long term rating
denotes a very low expectation of credit risk. It indicates a very
strong capacity for timely payment of financial commitments not
significantly vulnerable to foreseeable events. Similarly, A1+ short
term rating denotes obligations supported by the highest capacity
for timely repayment.
56
59
Basel Committee:
The Basel Committees guidance draws from principles of
corporate governance published by the Organization for
Economic Co-operation and Development (OECD). The OECDs
widely accepted and long-established principles aim to assist
governments in their efforts to evaluate and improve their
frameworks for corporate governance and to provide guidance
for participants and regulators of financial markets.
The Basel Committees October 2010 Principles for enhancing
corporate governance represented a consistent development
in the Committees long-standing efforts to promote sound
corporate governance practices for banking organizations. The
2010 principles sought to reflect key lessons from the global
financial crisis that began in 2007, and enhance how banks
govern themselves and how supervisors oversee this critical
area.
61
62
1.
The recruitment approach for the selection of members of the
board and for ensuring an appropriate diversity of skills,
backgrounds and viewpoints
2.
Whether the bank has set up board committees and the
number of times key standing committees have met.
3.
All material developments that arise between regular reports
are disclosed to the bank supervisor and relevant stakeholders as
required by law without undue delay.
4.
Timely public disclosure is made on a banks public website, in
its annual and periodic financial reports, or by other appropriate
means. It is good practice to have an annual corporate governancespecific and comprehensive statement in a clearly identifiable
section of the annual report depending on the applicable financial
reporting framework.
5.
BOP discloses its risk exposures and risk management
strategies without breaching necessary confidentiality. When
involved in material and complex or non- transparent activities, BOP
discloses adequate information on their purpose, strategies,
structures, and related risks and controls.
6.
BOP appropriately discloses their incentive and compensation
policy. In particular, an annual report on compensation is disclosed
to the public.
Information Technology
The bank fully acknowledges the importance of information
technology in developing more flexible structure that can
respond quickly to the dynamics of a fast changing market
scenario.
With focus on sophisticated product development, better
market infrastructure, implementation of reliable techniques
for control of risks and reach geographically distant and
diversified markets, the Bank has always endeavored to
benefit from technological advancements. During year 2015,
implementation of a state of the art core banking system
Flexcube Universal Banking System has been initiated, which
would not only bring efficiency in operations but also help in
attaining service excellence.
The Bank has a network of 406 online branches, including 1
sub-branch, along with 274 ATMs to help customers enjoy the
convenience of 24/7 banking services. In order to provide
seamless banking services to valued clients, branches have
been equipped with back-up connectivity, while a
comprehensive IT Security Policy has been put in place to
ensure safety of customers data and facilitate execution of
banking transactions in a secured environment.
In order to mitigate the risk involved in a disaster situation,
Disaster Recovery protocols are in place to ensure smooth
conduct of customer services. Besides, in order to assist the
management in decision making, a robust Management
Information System has been made available by the Banks IT
Division.
65
66
3.
Lend money in his/her private capacity to a
constituent of the Bank or have personal dealings with a
constituent in the purchase or sale of bills of exchange,
Government paper or any other securities.
4.
Guarantee in his/her private capacity the pecuniary
obligation of another person or agree to indemnify in such
capacity another person from loss.
5.
Act as agent for an insurance company, otherwise
than as agent for or on behalf of the Bank.
6.
Be connected with the formation or management of
a joint stock company.
7.
Engage in any other commercial business or pursuit
either on his/her own account as agent for another or
others.
8.
Accept or seek any outside employment or office
whether stipendiary or honorary.
9.
Undertake part-time work for a private or public
body or private person, or accept fee thereof.
10.
Open or maintain a Business Current Account with
any Bank or Banker of any description including BOP.
67
References
https://na.theiia.org/aboutia/PublicDocuments/Aud_Comm_Brochure_1_.pdf
http://www.grfcpa.com/resources/publications/auditcommittee-responsibilities/
https://www.google.com.pk/url?
sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8
&ved=0ahUKEwiElsKR_cDNAhVB1BoKHVSaBhUQFggZMAA&url
=http%3A%2F%2Fwww2.deloitte.com%2Fcontent%2Fdam
%2FDeloitte%2Fza%2FDocuments%2Fgovernance-riskcompliance
%2FZA_SampleRiskCommitteeCharter_24032014.pdf&usg=AF
QjCNHMwpZwGedTbVxxdILOcyCzukQQ3Q&bvm=bv.12522123
6,d.d2s
70