C.E.O Internal Audit and the Follow-up Sectors
Mr. Hazem Mohamed Mustafa Mohamed,
C.E.O Marketing, Financing, and Investment Sectors
Mr. Mahmoud Mohamed Saad Maher,
In Charge of Legal Sector
Mr. Mohamed Reda Ahmed Mostafa,
Consultant of Foreign Operation Sector
Mrs. Mushira Fathi Dakrouri,
In charge of the Risk Sector
Mr. Ali Ismail Ali Ismail,
Consultant of International Relations &Accounts Investments Sector
Mr.Tarek Salah ELDIN EL Defrawi
In charge of the Branches and central units sector
Dr.Adel Mohamed Ahmad EL alim
In charge of information &technology sector
Mr. Emad Mohamed Shalabi Mohamed,
In charge of the General Department for Compliance.
The Organizational Structure of the Bank includes an independent Central Control Department, directly subordinate to the Audit Committee, Branching from the Board of Directors. There has been appointed in charge of the said Department, a Compliance Officer, having distinguished efficiency, appropriate expertise, and high ability for contact and communication with all of the Bank’s Officers and Staff. The Department undertakes its functions in a professional and effective manner for the identification, the evaluation and the control of Compliance Risks which may be reflected in Control legal penalties, financial loss, or the loss of the Bank’s Image as a result of its failure to abide by the Laws and Regulations, or by the Ethical Conduct Rules of the Profession. The Department exercises a crucial role, particularly the application of the Rules, Instructions and Systems concerning the Anti-Money-Laundering and Terrorism Financing. No Banking Business may be exercised by this Unit.
The Compliance Department receives full support from the Board of Directors and the Senior Executive Management, for the free and independent performance of its functions. Appropriate Policies and work system have been prepared and approved for its performance of its independent activity as one of the Internal Control Units. It has to prepare Quarterly and Annual Reports and raise them directly to the Audit Committee branching from the Board of Directors and to the Board of Directors, besides referring a copy thereof to the Senior Management for information. There may also be submitted with such Reports, any suggestions for any amendments to be introduced to the Policies and Work Systems, so as to keep commensurate with the developments witnessed by the Bank.
The Compliance Department cooperates with the Human Resources Sector for the development and outspread of the Compliance culture among all of the Bank’s personnel and their training in this respect; besides the participation in the development of Training Programs associated therewith.
Risks constitute a key component of the Financial and Business Activities of the Market Economy. Risk Tolerance and/or Risk Conveyance represent two basic characteristics of the Banking Activity. The handling Risk Management is essential, taking into account that the Banking Business evolves and gets more and more complicated, notwithstanding the existence of strict Control Instructions. The matter necessitates the development and application of such Policy systems that would enable the identification, the measurement, the monitoring, and the proper Management of Risks, with the objective of controlling and the alleviation or the minimization of such Risks to restrict them within tolerable limits in accordance with the bank’s “Risk Appetite”, in view of the acceptable Risk Limits as approved by the Board of Directors.
Owing to the diverse and sophisticated activities pursued by our Bank, the Bank would be normally exposed to diversified risks, and to the fact that Risk Tolerance has thus become basical for the financial activity, it is essential then to analyze and evaluate some, or a group taken together of the Risks. It is through such analysis and evaluation that the Bank can decide the acceptance and toleration of certain risks or the transmittal of their impact to other parties. In all cases, the Bank seeks to achieve an acceptable balance between Risk Tolerance and the anticipated return of such toleration.
Certain Risk Management Policies have been developed for the Bank (Credit Risk; Market Risk; Liquidity Risk; Return-Rates Risk; and Operational risks), including the identification, measurement, evaluation, analysis and control of Risks; besides the determination of limits thereto and controls thereon, through diverse methods and continually updated information systems, in accordance with the approved relevant Risk Acceptance Policy, in close collaboration with the Bank’s Operational Units. The Policies and Risks Management system are periodically revised and amended so as to cope with the changes taking place in the markets, products and services, together with the best modern applications.
The Risk Management Sector of the Bank undertakes a periodical follow-up of the extent of the Bank’s Compliance with the maximal acceptable Risk limits, and with the actual extent outstanding within the Bank. This can be achieved through Periodical Reports to be presented to the Risk Committee emanating from the Board of Directors, for approval, so as to be raised thereafter to the Board for information as well as for taking what it may deem appropriate in respect thereof. The Sector applies automated system for the determination of the creditworthiness of all of the Bank’s clients whether being banks and correspondents, or being corporations and companies, or small-scale economic activities clients, or retail-banking clients.
The bank adopts extremely cautions policies as regards the Liquidity Control, and applies higher ratios than those normally required for control purposes. Such policies include an approved plan and a Permanent Committee for Liquidity Risk Management under exceptional circumstances, while pursuing specialized methods for the Market Risks Management. The Bank has also to conduct a periodical appraisal of its investments, besides laying control on the Cash-Flows, through the Management of its Assets and Liabilities in order to achieve at all times the Balance required, with the purpose of the maximization of the Capital’s profitability, and the provision of adequate liquidity for the all-time meeting of requirements, and the consolidation of the Bank’s approved Strategy, besides the avoidance of entering into High-Risk Investments. It is to be noticed that the Bank does not maintain presently an Investment Portfolio for trading purposes.
Shari’a Operational Risks
Our Bank, Al Baraka Bank Egypt, exercises all Banking services and operations together with the Commercial and Investment Business, as authorized for commercial Banks, on non-usury basis, in conformity with the provision and principles of the Islamic tolerant Shariá and under the relevant applicable Law.
Our Bank belongs to Al Baraka Banking Group, (the Bank’s Principal Investor), as being a Unit of the Group which stands as one of the leading Banking Entities in the World, abiding by the application of the provisions and principles of the Islamic Shariá in all of its transactions.
This is further evidenced by the Organizational Structure of the Bank, which embodies a Shariá Supervisory Board, directly linked to the Bank’s Board of Directors, and consists of three eminent Scholars specialized in Islamic Shariá and the Islamic financial transactions, and recognized and acknowledged for their sound Religious opinions (Fatwa) and deeply versed in the Jurisprudence of transactions. The Shariá Supervisory Board undertake the study and scrutiny of the Contracts and the Practical Agreements Forms, the Procedural and Technical Manuals together with the [Standard] Forms used in the Bank [daily] activities, in addition to any innovated products, as concerning the Shariá point of view. This Board issues Decisions, Recommendations, Religions opinions (fatwa) in their final form; its Decisions are binding.
The Board undertakes the examination and revision of the Bank operations, besides checking the Bank’s revenues and their sources through the Quarterly Financial Positions before having been approved, and submits its Reports therein at its Periodical Meetings, in addition to its independent Annual Report as concerning the Bank abidance by all Shariá requirements, for publication, accompanying the Bank’s Annual Financial Report.
For the further enhancement of this Role, the Bank has appointed a Shariá Internal Auditor, for the follow-up, and the implementation of all Fatwas, Rulings and Recommendations, emanating from the Shariá Supervisory Board, as well as for conducting periodical field visits to all Branches of the Bank to ensure abidance of all daily business carried out at the Bank, thereby; in addition to the clarification and rapprochement of variant points of view between Shariá rules and the actual problems of their application. The aforesaid Auditor presents his Reports to the Shariá supervisory Board as well as to the Senior Management of the Bank. He is empowered to draw the attention of the concerned bodies for rectifying the discovered Shari’a mistakes, which can be rectifies forthwith