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DEDICATION
To My almighty God
My beloved Parents
To my beloved, Sisters and Brothers
To all my family members, relatives and Friends.
May God bless you all!!!
I dedicate this report.
ACKNOWLEDGEMENT
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The completion of this work would not have been possible without various contribution
made by many people. For this reason, I appreciate the assistance provided to me during the
internship and would like to express my emotions of gratitude to whoever participated towards
the completion and success of this internship.
I offer great thanks to Almighty God who gave me all efforts invested in carrying out my
practical training and glory be to him as I am so pleased to the kind of institution that he
provide for me to work in as an internship occasion. My sincere thanks also go to my family
and friends who provided me with strength, moral support, guidance and financial support for
the achievement of this internship.
Thank gratitude to Umutara Polytechnic University as a whole Faculty of Commerce and
Applied Economics in particular which organized this practical training, allowing us to
acquire such an important and useful experience by putting the theoretical academic
knowledge into practical realities.
I thank the branch Manager of BPR Kimironko who allowed me to carry out my internship in
his institution.
My thanks; go generally to BPR Kimironko staffs, who have been very kind, attentive and
competent. Finally, I extend my thanks to all my colleagues.
May God bless you.
MUGWANEZA Marie Grce
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PREFACE
This internship carried out at Banque Populaire du Rwanda LTD , Kimironko Branch lasted
for a period of four weeks from 15th March, 2012 to 15th April 2012 acted as a tool to
correspond theoretical courses learnt in a class with real practice on the ground to identify the
extent to which theories learnt from lecturers are applied. This internship was carried out from
several departments that constitutes Banque Populaire du Rwanda LTD , Kimironko Branch
such as Customer care department, Commercial department (Credit and Recovery), Tellers
Service Accounting service, and internal audit. It is from these services that I managed to
make known my self to operations carried out.
This internship report describes clearly the background, mission, vision, objectives, location,
and banking procedures of BPR LTD particularly Kimironko Branch. Such information can
serve as a source of information to any individual who may need information concerning BPR
LTD as a financial institution.
Although carrying out this training, scientific methods to collect truthful data about the
institution were employed. These include participatory approach, observation and
documentation. Therefore recommendations and conclusions were drawn basing on the above
scientific methods of data collection that have been used.
Therefore, this report is made up of three chapters: Chapter one comprises of the generalintroduction, objectives, methods of data collection and time calendar. Chapter two presents
the description of the institution, its historical background, mission, its organization and
structure. Chapter three contains activities carried out, skills gained and challenges
encountered. Finally this report is enclosed by a general conclusion and recommendations.
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LIST OF ABBREVIATIONS
BAA: BranchAdministrator Assistant
BBM: Bachelors degree in Business Management
BM: Branch Manager
BNR: Banque National du Rwanda
BP: Banque Populaire
BPR: Banque Populaire du Rwanda
KB: Kimironko Branch
LTD: Limited Company
UBPR: Union des Banques Populaire du Rwanda
UPU : Umutara Polytechnic University
VOSTRO: Their account
NOSTRO: Our account
www
p
(VCC&RCC)
(BAA)
money transfer control (MTCN)
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TABLE OF CONTENTS
ACKNOWLEDGEMENT .........................................................................................................1
PREFACE ................................................................................................................................3
LIST OF ABBREVIATIONS .....................................................................................................4
CHAPTER I. INTRODUCTION ..............................................................................................7
1.1. Objectives of internship ....................................................................................................7
1.1.1 General objective ............................................................................................................7
1.1.2 Specific objectives ...........................................................................................................7
1.2. Significance of training ....................................................................................................8
1.3. Methodology .....................................................................................................................8
1.3.1. Interviews .......................................................................................................................8
1.3.2. Observation ....................................................................................................................8
1.3.3 Participation ...................................................................................................................9
1.3.4. Documentation ...............................................................................................................9
1.4. Time Calendar ..................................................................................................................9
1.5. Problems encountered in the training ..............................................................................9
CHAPTER II: PRESENTATION OF Banque Populaire du Rwanda LTD ..........................10
2.0. Introduction ...................................................................................................................10
2.2. Shareholders ...................................................................................................................11
2.3. Mission and vision of Banque Populaire du Rwanda LTD ...........................................12
2.3.1 Mission ..........................................................................................................................12
2.3.2. Vision ...........................................................................................................................12
2.4. Logo of Banque Populaire du Rwanda .........................................................................12
2.5. Objectives of Banque Populaire du Rwanda LTD .........................................................13
2.7. Organisation Structure of BPR LTD Kimironko Branch ...........................................14
2.8. Branch Organization Structure of Kimironko BPR LTD ...............................................15
2.9. BRANCH MANAGER .....................................................................................................16
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2.9.1 His mission ....................................................................................................................16
2.9.2. Internal Audit Services ................................................................................................16
2.9.3. The branch Administrative Assistant (BAA) ...............................................................17
2.9.4. The Accounting ............................................................................................................18
2.9.5. Credit department ........................................................................................................19
2.9.6. Branch head of risk ......................................................................................................19
2.9.6.1. The mission of head of risk .......................................................................................19
2.9.7. Teller services ..............................................................................................................21
2.9.8. Customer care Services ...............................................................................................21
CHAPTER 3: PERSONAL AND PROFESSIONAL EXPERIENCE ACQUIRED ................21
3.1. Reception and Customer Care Service...........................................................................21
3.2. Teller services .................................................................................................................22
3.2.1. Western Union ............................................................................................................22
3 .2.2. RCC and VCC operations ...........................................................................................23
Table 3.3. .Credit process .....................................................................................................24
3.3.1 Branch Decision Credit Committee .............................................................................25
4.3. Compensation/ Clearing services ....................................................................................27
4.5. Internal auditing service..................................................................................................28
The Internal Audit service at KIMIRONKO Branch has got 3 auditors of whom one is the
chief auditor............................................................................................................................28
The principle role of the auditors is to check whether the accounting operations made by the
branch are done according to the rules and regulations put forward to guide the profitability of
the bank and giving advices for amelioration of the branch................................................. 28
3.2. EXPERIENCE GAINED DURING MY INTERNSHIP AND PROBLEMS ..................28ENCOUNTERED ............................................................................................................28
3.2.1. Experience Gained .......................................................................................................28
3.2.1.1 Theoretical application .............................................................................................28
3.2.1.2. Time management .....................................................................................................29
3.2.1.3. Interaction with employees and other internees ....................................................29
3.2.1.4. Performance .............................................................................................................29
3.2.1.6. Methods of data collection .......................................................................................29
1. General Conclusion ............................................................................................................30
2. Suggestions ........................................................................................................................30
BIBLIOGRAPHY ...................................................................................................................31
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CHAPTER I. INTRODUCTION
1.0. General introduction
Internship is an obligatory practical course that every finalist student in Umutara PolytechnicUniversity (UPU) every Faculty should carry out in order to be awarded Bachelors Degree in
Commerce and Applied Economics. Students at UPU like any other academic institutions
study theoretical courses with out knowing how they are applied practically.
This training is intended to go with theoretical principles learnt in a class with what is really
applied at the field.
Thus, it is of the great importance for the student because it introduces a picture to the workingenvironment by preparing him to practically involve himself for the future employment.
The internee makes an assessment on the organization under study and a final report is
prepared and submitted to the University for Evaluation.
The practical training was carried out in BPR LTD Kimironko Branch for a period of four
weeks from 15th March 2012 to 15th April 2012.
1.1. Objectives of internship
1.1.1 General objective
The main objective of this internship is to practice the theoretical concepts learnt from Lectures
in the real work environment. It is also aimed at making students gain professional experience
in private or public sector. By trying to update and mix those concepts in day-to-day operations
of the organizations.
1.1.2 Specific objectives
- To improve proficiency in computer skills
- To be personal and professional developed
- To sharp ability in communication skills, initiative and independence
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- To gain interpersonal skills that is essential in socio-economic decision making.
1.2. Significance of training
This training is immeasurable importance, it enable the beginner to gain knowledge from the
existing field that is vital for homework of future working environment.
It is the basic course for the fulfillment of the academic requirement to be awarded bachelors
degree in Commerce and Applied Economics by Umutara Polytechnic University.
It adds to the existing body of knowledge which acts as a guide for future research practices as
well as improving the functioning of the organization where the training was conducted.
1.3. Methodology
Methodology refers to the methods and techniques used by the internee to obtain the
dependable data required. For compiling this report and make it a success, both primary and
secondary data sources were employed. With primary data, sources were generally; interview,
observation, Participation. Whereas secondary data were got from documentations of BPR
LTD Kimironko Branch.
1.3.1. Interviews
The trainee carried out personal interviews with different employees like usual workers; heads
of departments, administrators and answers provided were noted down and guided as firsthand
information trusted to be used.
1.3.2. Observation
This method helped the trainee to get the first hand information on the employees reaction to
different practices in the office, by observing and analyzing the actions. The trainee has to
observe how things were done.
Some of the information gathered through this technique included:
Employees commitment and arrangement in their work.
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Relationship between employees and their superiors including their social interactions
and different approaches used among them.
1.3.3 Participation
The trainee practically participated in the customer care; we are opening the account of people
where wont to save money. Computation of credit requirements like making contracts to be
filled by the credit seekers in the commercial department, other relevant bank services.
1.3.4. Documentation
The internee while using secondary data, consulted available few documents like BPR LTD
credit policy released on 15thJanuary 2010, auditing Manual and other documents of which
deserved to provide necessary information and visiting the website of BPR LTD
1.4. Time Calendar
The internee was welcomed by the Branch administrator assistant (B.A.A) and allowed him to
carry out practical training in the bank.
The training started from 15th March, 2012 to 15th April, 2012. The trainee used up his fist
week in the customer care department (Reception.)
In the second week the internee practically participated in the commercial, third week in credit
department and in recovery department, fourth week in accounting department and in auditing
department.
1.5. Problems encountered in the training
Most of the intended objectives of this practical training were successfully realized. However,
some of obstacles during this period were faced as mentioned below;
Time accorded to carry out internship by UPU is too short to exhaust all the activities
that should be accomplished in order to have enough knowledge on such financial
institution that has several activities it functions. For example the trainee did not get
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opportunity to visit BNR on the field and observe how compensation is done. Thus it
became tiresome to complete scope of the study.
The employees in almost all branch departments seem to be much busy most of the
time and they could not be available to provide information and guidance every time
required by the internee.
Insufficient funds to accomplish this training .
Most of the employees can show what they are doing but they can not allow to in the
software used in the Bank, because each employee would have his own menu to work in,
so they are afraid of giving the internee working in their, because if he makes any small
mistake it will come on their head, is in that case the internee who is going to experience
still.
CHAPTER II: PRESENTATION OF Banque Populaire du Rwanda LTD
2.0. Introduction
BPR as other banks, according to Pierre Georges BRAND is defined ( Banque Populaire du
Rwanda LTD) as a group of individuals who come together to form a cooperative to provide
security for their savings and redistribute in form of loans to the members of that group for
their professional activities or for ameliorating .
2.1. Historical Background
2.1.1. Evolution of Banque Populaire Du Rwanda Ltd (BPR LTD)
In the year 1968, Rwandan government thought of establishing Banque Populaire, but it could
not afford itself. It consideration necessary to look for friendly states from overseas that had
experts to provide a help. These states included French, Canada, and Swaziland.
In the year 1971, the government of Swaziland sent experts to carry out a pre-study and
examine whether the system of Banque Populaire du Rwanda can be successful.
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The study tested favorable and on 7th December 1972 a treaty between two parties Rwanda and
Swaziland concerning establishment of credit and savings cooperatives were signed .
It is on this note that the first Banque Populaire was installed on 4th August 1975 at NKAMBA
in collective farm KABARONDO in KIBUNGO which is now EASTERN PROVINCE.
In the year 1986, the umbrella of these banks (Union des Banque Populaire du Rwanda LTD
(UBPR) was formed to bring together all those cooperative Banks that had organizational
characteristics of savings and credit offering. With this, a union of those cooperative Banks
were formed in 1988 under the law No 31/1988 of 12 October 1988 governing organization of
cooperative societies of the decree-law no 7/1981 on the 28th April 1981regurating financial
institutions.
These cooperative Banks worked independently, they did not have head offices .Only the
Umbrella had its head quarters in Kigali City and it would go with the entire system while
providing proper administration, logistics, and technical support for the prosperity of other
branches, the primary target was to expand services to rural areas regarding the regulations put
forward by National bank of Rwanda guiding financial institutions.
The evolution of this Banque Populaire continued as time goes on. In January 2008 theseBanque Populaire that had cooperatives regulations, were transformed and became commercial
banks. Over 140 independent units that had limited powers to exercise banking services were
now legally recognized to operate as other financial institutions in Rwanda.
2.2. Shareholders
Apart from local citizens, the Holland bank (RABOBANK NEDERLAND) had a third of the
shares in the Banque Populaire by June 2008 after the transformation from UBPR to
commercial Banks. Rabobank position in its financial investment and technical support
strengthened the success for this financial institution
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2.3. Mission and vision of Banque Populaire du Rwanda LTD
2.3.1 Mission
Providing agreeable financial services in both rural and urban areas by maintaining a
sustainable financial support based on cooperatives characteristics especially to farmers, micro,
small and medium enterprises, private individuals and agribusiness enterprises.
2.3.2. Vision
To become a solution bank in Rwanda offering quick and better quality services
2.4. Logo of Banque Populaire du Rwanda
The Banque Populaire has a logo that comprises: a key, three letters (BPR) and sorghum within
the circle.
The sorghum symbolizes prosperity
The key which opens and closes is a sign of Security
The three letters is an abbreviation of Banque Populaire du Rwanda LTD
The circle symbolizes solidarity and joining together.
The Banque Populaire du Rwanda LTD is permitted to simultaneous role;
It provides peoples wealth with security through savings and withdraw
Gives access to loan seekers through offering credit services.
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2.5. Objectives of Banque Populaire du Rwanda LTD
The Banque Populaire du Rwanda LTDhas the following objectives:
Creating a suitable environment that may attract clients to invest their funds according to
the conditions determined by the policy and regulations of savings;
To improve the spirit of saving among Rwandans this is the sign of the better future
standard of income;
Provide loans to customers to help them meet their financial, economic and social needs,
these loans are refunded according to the terms of the loan contract that are defined by the
policy and regulations of loans;
Encourage the spirit of initiatives, local labor by practical usage of savings and credit
services offered by the Banque Populaire du Rwanda LTD The need to fight against the
extensive of speculations and depreciations in credit and savings domain.
2.6. Background of BPR LTD KIMIRONKO Branch
The BPR LTD KIMIRONKO Branch is located in KIMIRONKO Sector, GASABO District in
Kigali City. It was established on 3rd April, 1990 under the code of law 118. It is noted that,
after six month of its establishment, this Branch started offering credit to its customers on
mortgages, commerce, small and medium enterprises like hand crafts and others.
However due to the occurrence of Genocide against TUTSI which took place in 1994 many
professionals familiar with banking system were killed, others went into exile, banking
equipments were damaged until 12th, April 1996 when it reopened its doors. During this
reopening of the branch, the numbers of customers was every day increasing and the bank
used manual system that could not meet their needs. This led to the computerization of the
banking system to increase rapid provision of its services. It is from this establishment oftechnology in the Banque Populaire du Rwanda LTD KIMIRONKO that facilitated its
prosperity in performing bank operations.
The BPR LTD KIMIRONKO Branch changed to be a commercial bank with amount of capital
totaling to sixteen billions Rwandan francs.
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2.7. Organisation Structure of BPR LTD Kimironko Branch
The BPR LTD KIMIRONKO Branch has three Sub-branches and two outlets. These sub
branches include KICUKIRO, NDERA and KABUGA, and outlets are REMERA,
SONATUBE and MASAKA.
Figure 1 : BRANCH ORGANIZATION CHAR
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2.8. Branch Organization Structure of Kimironko BPR LTD
B r a n c h
M a g e r
C r e d it
r a n c h R is k H e a d
F in a n c e
C h i e f A c c o u n t a n t
C o m m e r c ia l
C o m m e r c ia l H e a d
R e c o v e r y
R e c o v e r y O f f i c e r
C r e d it
C r e d i t O f f ic e r
A c c o u n tin g
&R e p o r tin g
A c c o u n t a n t
S u b
B r a n c hC o n t r o l
A c c o u n t a n t
C u s to m e r
C a r eC u s to m e r C a r e
O f f i c e r
C o m m e r c ia l
S e r v ic eC o m m e r c i a l
O f f i c e r
B r a n c h
A d m i n is t r a t iv eA s s i s t a n t
F a c i l i ty M a n a g e m e n t
E m p lo y e e
C a s h
C o u n te r H e a d C a s h ie r
C a s h i e r
S u b B r a n c h
In te r n a lC o n t ro l
B r a n c h A u d i t H e a d
B r a n c h i n t e r n a l A u d i to r
IT
S u p p o r t * *E m p lo y e e O p s & H e lp d e s k
Source: BPR LTD Kimironko Branch
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2.9. BRANCH MANAGER
2.9.1 His mission
The mission of the Branch manager is to make positive that the productivity of the bank keepson increasing.
Specificresponsibilities
To produce a well designed plan that facilitates in management and supervision of
branch activities and that of the sub-branches plus outlets correspondingly.
To prepare and produce reports obligatory on time.
Organize meetings of branch employees, Sub Branch Managers, and management
committees.
Analyze the monthly financial position of the branch, sub-branches, and adopt required
measures to ameliorate the situation.
Organize at least two commercial events for customers each year
To put in action recommendations as it has been requested in different reports,
2.9.2. Internal Audit Services
Leader of the internal Audit
The leader audit replaces the branch manager in his absence, but his principle responsibility is
to coordinate all the activities of the audit of the branch and sub branches for the protection and
safeguard of the banks assets, respect of measures and regulations that should be followed
whereas doing bank operations.
For the proper assurance of the independence of the chief internal audit unit, this post is
directly subjected to the inside audit of the headquarters, but the branch manager continues to
be responsible for the in general management of the branch, and he takes responsibility of the
administrative managements of the branch internal auditors particularly those concerning the
branch administrative records of the personnel, social and the discipline.
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Specific Responsibilities
To verify independently whether all activities done by the bank are conducted in
accordance to the laws and regulations,
Encourages integrity and effectives in the internal control system of the branch and
sub-branches as to minimize errors, frauds and losses;
Prepare and produce a monthly summary of audit reports of the branch and sub-
branches and submit them to headquarter;
Prepare and produce a monthly summary of audit reports of the branch and sub-
branches and submit them to headquarter;
He advises the branch by suggesting possible solutions to the recognized problems;
-To analyze financial audit by analyzing all annual accounts for the branch and sub-
branches;
To conduct the operational audit: on top of controlling financial statement and
accounting data, the auditing goes ahead and analyze the conformity of all activities to the
objectivities fixed, control the effectiveness of controls put in place, control all procedures
as to improve the system and evaluate the performance of the bank;
Discuss with employees on the oral and written reports and performance, verify
whether all recommendations given in reports are being practical;
To verify whether audit files and reports of the branch and sub-branches are classified
in a good way;
To provide necessary materials and means required by internal auditors of sub-branches
to accomplish tasks permitted to them;
To provide necessary information to the parties dependable in case of an immediate
intervention;
Work hand in hand with the branch manager regarding taking to court of justice those
who are responsible for fraud.
2.9.3. The branch Administrative Assistant (BAA)
He is responsible for the human resource management,
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He is in charge of providing all necessary materials to the employees for horizontal
organization of the bank.
He follows up every day presence of the employees at work.
He signs letters on condition that holidays for the employees.
2.9.4. The Accounting
The accounting department of KIMIRONKO branch has:
Chief Accountant
Two assistant accountant officers
Two clearing agents in charge of compensation.
Chief accountant of the branch
Mission of the Chief Accountant
Coordinate the accounting unit of the branch and sub-branches and his responsibility is to
consolidate branchs financial statements.
Specific responsibilities
Make a daily verification of the branch accountants works;
Make a daily verification and classification of the transactions in the journal;
Follow-up of the daily transactions of the profit and loss account;
Prepare and produce a weekly verified and consolidated financial statement from all branch
and sub-branches;
To Supervise and follow-up the corrections of suspense on internal accounts;
Organize employees and enhance the spirit of team work;
Monthly verification of the branch accounts;
Control and verify the branchs fixed assets and monthly calculation of depreciation;
Verification and authorization of the branchs accounting transactions stated in the system.
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Weekly supervision of financial documents from the head quarter, sub-branches and other
commercial banks.
Keep a correct filing system of all accounting records;
To record deposits and withdraws of the branch and sub branches (VCC&RCC) on the
same day as they directly occur.
Prepare and produce a report about the quality of financial statements from all sub-
branches.
To execute new departmental procedures and policy from the Headquarter if requested.
2.9.5. Credit department
The credit department of KIMIRONKO branch has Head of Risk officer
Four commercial officers
Three credit analyst officers
Four recovery officers.
2.9.6. Branch head of risk
2.9.6.1. The mission of head of risk
He coordinates and supervises all management activities and risks executed by the credit
officers and recovery officers as to make a branch report with those of sub-branches and
maintain the equilibrium between the return and risk of bank.
Specific responsibilities
Analyse contracts of credit seekers and provide decision according or rejecting theirloan request.
Make analytical credit assessments as part of Branch credit committee and act as
chairman of this committee in case of absence of the branch Manager.
Support by training the commercial officers in credit related issues,
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Coordinate the performance of credit officers and the recovery officers
Table 1 Types of loans offered by BPR LTD KIMIRONKO Branch.
Libell English
A. Retail
Interest ratesRate/Amount
personal loans 17% to 19%
Construction loan 17% to 19%
loan Investment 17% to 19%
Penalty on over limit Plus 2% sur taux appliqu
B. Short term
business loans
Overdraft / line of
credit 19 21%
Invoice discount 19 21%
Commissions personalloans
Handling fee 5,000Frw
Management fee1% avec min 10,000 max
500 000frw
Commissions
(Corporate andbusiness loans)
Handling fee 30 000Frw
Management fee1% minimum 50,000Frw
maximum 1,000,000frw
CBank guarantee
(bid & performance
bond)
- usual clients with100% cash collateral
- Corporate clients
2% per year
Without cash
collateral4% per year
Handling fee 5 000 RWF
Management fee 25 000 Rwf
IV. DEPOSITS Term deposits Cfr grille dpot terme
GWIZA Savings
accountCfr grille GWIZA
HIRWA Savings
accountCfr grille HIRWA
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2.9.7. Teller services
KIMIRONKO branch has seven tellers of which one is the principal teller.
The principal teller is responsible for:
- Managing the safe customer of the Cash,
- He signs documents required in collaboration with branch manager.
- Participate in inventory tasks where necessary,
- Provide necessary information to support the auditor in daily cash control.
- Execute cheques transactions
- Execute transactions of the western union.
2.9.8. Customer care Services
The customer care has the following duties;
- To receive and orient all customers and other persons who need branch information.
- Receiving all written documents of all kinds submitted to the branch manager
- Receiving customers who come for account opening.
- Preparing and providing new files and passbooks for customers.
CHAPTER 3: PERSONAL AND PROFESSIONAL EXPERIENCE ACQUIRED
This chapter describes all activities from different departments in which the internee practically
participated in during his internship period in Banque Populaire du Rwanda S.A
KIMIRONKO Branch.
3.1. Reception and Customer Care Service.
This service provide a firsthand information about the bank operations and its benefits to the
customers who want to have a clear picture on this financial institution. It receives and orients
inquiries of the customers to the concerned departments, it also provides all necessary
information required by existing members on the status of their accounts.
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It is where all persons who want to become members of the bank get forms and fill them in the
light of having various accounts in the bank. The internee observed and participated in the
procedures required in opening accounts for new members, explaining to clients about the
banks products as he was trained by the employees on all services of the bank and responding
to customers inquiry with the help of the responsible person.
The internee was in charge of such service therefore, had the duties of providing an adequate
and sufficient information regarding present and future perspective of bank to the customers or
members.
Requirements to open an account in BPR Kimironko include the following;
- To be an adult (being mature) or emancipated minor.
-Two photocopies of Identity card or a Passport.
-Two passport photos
- To sign on the file at a legible place reserved for him.
In case of loosing a passbook, the looser has to report to the near police station who provides a
letter confirming the incident and directly pays 5000 Rwandan francs to the bank to be given
anew one. In exhaustion of the passbook, a customer pays 1700 Rwandan Francs.
It is clearly observed by the internee that all this amount of money is not paid directly in the
customer care office where registration is done rather the payment is made to the teller.
3.2. Teller services
Teller service includes two principal aspects;
Depositing and withdrawing of cash.
Kimironko Branch has seven tellers of which one is the Head teller.
-While withdrawing, the cashier deducts account of the client by debiting amount of moneywithdrawn by him.
-On depositing cash, the cashier increases clients account with amount deposited by him.
3.2.1. Western Union
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It is electronical and technological system in which one can send or receive money from any
country as long as such state is registered for western union. The only information needed is a
dress of the sender and receiver with money transfer control (MTCN) which is given by the
western union agent at the time of sending and requesting of which is requested at the time of
receiving money.
3 .2.2. RCC and VCC operations
Are the operations known in French (RCC Retrait la Caisse Centrale) and (VCC Versement
la Caisse Centrale) in which by Branch Managers authorization the bank can deposit or
withdraw the money to BNR in case of shortage or excess liquidity at the branch.
Credit department
The credit department of KIMIRONKO Branch is under responsibility of Branch Risk Head.
This service has five qualified Persons from whom one is Branch Head of Risk. Credit
department is divided into two units;
Credit Unit: It is entitled to draft proposals, making critical analysis, and monitoring of loan
utilisation acquired by the clients.
Recovery Unit: It isresponsible for the recovery of bad debts
The Branch Risk Head perform the following tasks;
- He approves and makes credit assessment for head office credit committee drawn by
credit officers.
- To give a decision on the loan demanded by according or rejecting.
- To monitor the performance of credit officers and the recovery officers
- He acts as a chairperson of credit committee in case of absence of the branch Manager.
- He is responsible for offering assistance, support and train the commercial officers in
credit related issues by increasing their knowledge.
- He controls whether every credit officer is specialized in relevant field.
The Credit Officers are entitled to the following duties;
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- Critically analyse credit requirements drawn by commercial officers.
- To check whether a proposed loan by the commercial officers constitutes the risk return
balance that BPR requires.
- Review credit assessments as part of branch credit committee
- To give a clear recommendation for review by the branch or Head office credit
committee.
- Draw credit contracts in accordance with approvals of credit committee.
- Archive loan files and determine completeness of loan files (before disbursement).
- To comply with rules and regulations of BNR concerning financial institutions.
- To make credit reports to be used internally or externally.
- To perform other tasks as required by the institutional management within the
framework of the responsibility.
Theo recovery Officers are responsible for the following duties.
- To make operations for the client who want to recover the loan before they due.
- T o make control of the quality of the credit portfolio.
- .To make consecutively procedures required for loan recovery.
- To asses, communicate and coordinate activities required from external parties (such as
legal services).
- Train commercial officers to identify high risk clients.
- Preparing and produce recovery and other related reports to be used internally or
externally.
.
Table 3.3. .Credit process
- To have an interview with the client and this should be preceded by an application
letter demanding for a loan.
- Visit the customer
- Write proposal
- Asses critically the proposal.
- To take decision on a loan applied for.
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- To make and produce credit letter.
- Obtain collateral
- To sign loan contract
- Approve disbursement schedule
- Disbursement
- Make a monitoring of client and his loan by reviewing the credit application.
- The exercising of recovery.
3.3.1 Branch Decision Credit Committee
Table 1KIMIRONKO Branch credit Committee constitutes the following individuals;
Branch Manager President
Branch Risk Head Risk head
Credit Officer A member
Recovery Officers A member
Table 2 Types of loans offered by BPR KIMIRONKO Branch.
II.LOANSLibell French EnglishA. RetailInterest rates
Rate/Amount
Prts personnel personal loans 17% to 19%
Credit construction Construction loan 17% to 19%
Credit dinvestissement Investmentnt loan 17% to 19%
Pnalit sur dpassement Penality on over limit Plus 2% sur taux appliqu
B. Short termbusiness loansCredit de caisse / dcouvert Overdraft / line of credit 19 21%
Crdit descompte facture Invoice discount 19 21%
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Commissions personalloans
Frais douverture de dossier Handling fee 5,000Frw
Frais de gestion de crdit Management fee1% avec min 10,0max 500 000frw
Commissions(Corporate andbusiness loans)
Frais douverture du dossier Handling fee 30 000Frw
Frais de gestion de crdit Management fee1% minimum 50,000Fmaximum 1,000,000frw
C. Bank guarantee(bid & performancebond)Provisionn 100%
- usual clients with 100%cash collateral
- Corporate clients
2% per year
Non provisionn Without cash collateral 4% per year
Frais douverture du dossier Handling fee 5 000 RWF
Frais de gestion de crdit Management fee 25 000 Rwf
IV. DEPOSITS Dpot terme Term deposits Cfr grille dpot terme
Compte epergne - GWIZA GWIZA Savings account Cfr grille GWIZA
Compte epergne - HIRWA HIRWA Savings account Cfr grille HIRWA
SOURCE; BPR TARIFF (proposal)- April 2010
*Any preferential rate has to be approved by head off ice c red icommitteeNB: Prices are exclusive of any taxes.
Accounting services
The accounting department of KIMIRONKO branch has five accountants and these include of
whom one is chief accountant. It uses accounting software called GLOBUS.
The accountants of KIMIRONKO Branch perform the following tasks:
- Daily recording of accounting entries.
- Making classification of accounting documents relating to treated transactions.
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- Recording payrolls of those whose salaries pass via KIMIRONKO Branch.
- Certification of the cheques
- Monthly preparing and calculating accounting entries concerning depreciation.
- Print out all bank statements after reconciliation
- Monthly preparing and making accounting entries concerning provisions for bad and
doubtful debts.
- Daily making of compensation records.
- Preparing and producing well organized monthly financial statements on time,
The accounting service by KIMIRONKO Branch faces the following challenges;
Daily increasing number of customers compared to the capacity of the Branch lead to the
overworking of the accountants.
The internee was practically involved in accounting service while classifying transactions
mainly analyzing and recording them with the help of the branch accountant who consolidated
the theoretical and practical knowledge.
4.3. Compensation/ Clearing services
It refers to a physical exchange of different values in monetary terms like money transfer
orders and check, among various commercial banks where the compensation process takes
place at BNR every day at 10:00 to 3:00 excluding weekends.
The compensation officer at the Branch has the following tasks:
- Receives and verifies all documents to be presented at BNR during compensation period.
- Make an analysis of the reliability for documents to be presented in BNR.
- To make a follow up of the exchange before and during compensation
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The internee was told of the gradual process for this compensation however he could not make
any headway due to the fact that bank employees are the only people allowed to carry out that
activity.
4.5. Internal auditing service.
The Internal Audit service at KIMIRONKO Branch has got 3 auditors of whom one is the chief
auditor.
The principle role of the auditors is to check whether the accounting operations made by the
branch are done according to the rules and regulations put forward to guide the profitability of
the bank and giving advices for amelioration of the branch.
To control if there is fraud and error and give advice to the branch employees on how they can
promote their performance.
The internee observed and participated in all audit procedures, where he saw auditing manual
of BPR SA, and the minimum requirements each department should posses. However the
internee did not get enough time to practically exhaust all the practical work under audit due to
the scope of internship calendar.
3.2. EXPERIENCE GAINED DURING MY INTERNSHIP AND PROBLEMSENCOUNTERED
3.2.1. Experience Gained
The experience I leant during my internship was important in my development skills.
Experience was realized in the following areas:
3.2.1.1 Theoretical application
I put into practice the theoretical knowledge leant in class to the related computer skills.
Differentiated skills were leant from different sections where I participated and other skills that
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I had not leant in class like Lotus Notes and Citrix Applications and how to configure network
printers.
3.2.1.2. Time management
I leant to be punctual as I was supposed to reach at the office premises at the time scheduled
before noon and after noon (7:30am- 4:30pm), from Monday to Friday.
3.2.1.3. Interaction with employees and other internees
This gave me an opportunity to get experience in areas of computer operations, work
relationship, and work conflict resolution. This was vital in preparing me for the future work
environment.
3.2.1.4. Performance
As the environment was friendly and flexible, I performed all the work assigned to me. My
workmate helped cope with all challenges at work and he was always there for me whenever I
was in need of any form of assistance, mainly when it arrives to go to field I could stay in
touch with him and tried to be independent until the time get over so he come and pick me
from there.
3.2.1.5. Self-Evaluation
The internship conducted was an opportunity for me to analyze myself how well could I
behave responsible within a professional environment where everyone knows what to do and
what to not do. It has also raised myself confidence and discovering my internal potentials
since I didnt know that I knew and I could remind myself some of concepts learned some days
back because whatever I encountered at work was not completely new to me , I knew them in
theory ,the emphasis was to put them in practice.
3.2.1.6. Methods of data collection
The period of training was essential in equipping knowledge of using data collection methods.
The methods used are interview, observation, participation and documentary methods.
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GENERAL CONCLUSION AND SUGGESTIONS
1. General Conclusion
During this training, I acquired a lot of knowledge through how theoretical principles are put in
practice and this was the General objective for this practical work. During my internship I was
often forced to use my knowledge in both finance and accounting in banking technology,
which had the merit to refine and make them closer to practice.
Thus, the trainee completed his training with the general knowledge of the performance of
Peoples Bank and empowering in economical analysis. In order to improve his performancemany tools and skills were put forward so that he can be able to analyze and resolve some
problems observed in this financial institution through different techniques and procedures
used in banking system.
Adapting to the spirit of team work and how to communicate with customers are also major
assets in my training.
2. Suggestions
To increase the quality of service, the bank should;
Increase the number of employees particularly in the department of accounting and
tellers because the number of BPR LTD customers is always increasing.
To have well organized documents that would be used by any individual especially the
internee. This can help them acquire firsthand information on the branch operations and for
the entire BPR LTD.
Make continuous trainings to the branch employees.
Educate and sensitize the public the importance of saving.
To provide some incentives to employee who done his/her work perfectly
Recommendations to the UPU
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