Shaping tomorrow’s financial leaders today Annual Report 2009 02 Introduction 34 Research Department 04 Chairman’s Statement 35 Special Projects 06 BIBF Vision 37 BIBF Team 07 Board of Directors 40 BIBF Guest Speakers / Lecturers 2009 08 Director’s Report 41 participating Organisations 10 Management Team 44 Glossary 14 trends and growth potential 46 Independent Auditors’ Report 16 Review and highlights 48 Statement of financial position 19 Strategic Objectives 49 Statement of comprehensive income 29 Centre Reports 50 Statement of changes in fund balance 32 Quality Assurance Department 51 Statement of cash flows 33 Marketing and Communications Department 52 notes to the financial statements His Royal Highness His Majesty King His Royal Highness Prince Khalifa bin Hamad bin Isa Al Prince Salman bin Salman Al Khalifa Khalifa Hamad Al Khalifa The Prime Minister of The King of the The Crown Prince the Kingdom of Bahrain Kingdom of Bahrain & Deputy Supreme Commander of the Kingdom of Bahrain The Bahrain Institute of Banking and Finance (BIBF) has played a critical role in Bahrain’s long-term success as the region’s leading financial centre. Since its inception in 1981, BIBF has been committed to providing the highest levels of training, education and professional development programmes to the financial services industry in the Kingdom of Bahrain and the region. Our breadth of training, education and professional development programmes includes Accounting; Banking; Finance; Insurance; Islamic Finance; IT; Management and Leadership expertise. BIBF also provides Academic qualifications andE xecutive level development. Clients range from banking professionals to private corporate clients to ministries, chambers of commerce, world class oil companies and manufacturing companies of differing sizes. BIBF provides of an extensive range of internationally recognised professional qualifications. These include the CIA, CPA, and CMA within the Centre for Accounting; ACAMS, ACI, CFA, and PRM within the Centre for Banking, Arabic PIC and accreditation with the Chartered Insurance Institute (UK) within the Centre of Insurance; accreditation with the Chartered Institute of Marketing (CIM), the Chartered Management Institute with its Tamkeen Leadership Skills programme as well as professional qualifications inCPP and CTP via CIPD.
2 BIBF | Annual Report 2009 BIBF has strong Academic partnerships with highly renowned universities including the highly accredited MBA and MSc programmes in Public Administration and Human Resource Management from De Paul University USA, as well as the Darden Leadership Development Programme (in collaboration with the Institute of Bankers, KSA) and the University of Cambridge International Diploma in Management. BIBF provides an Assessment Centre of which its services are provided in partnership with global agencies and include English Placement testing, Training Needs Analysis, Personality Assessments, Leadership Styles and Team EfficiencyE valuations, Competency Based Interviewing, Career Guidance, and Executive Coaching. BIBF is a multi-lingual, multi-cultural organisation with a world class faculty, most of whom hold internationally recognised professional and academic qualifications, combined with extensive market experience. We are committed to hiring, developing and enhancing the careers of Bahraini nationals, both our course participants and our staff. We have an impressive 78% Bahrainis on staff and management.
BIBF | Annual Report 2009 3 Chairman’s Statement
On behalf of the Specific Council BIBF has two clear areas of for Vocational Training (Banking focus, firstly ensuring the human Sector), I am pleased to present capital of Bahrain grows via the Annual Report and Audited professional development, and Financial Statements of the secondly, instigating this through Bahrain Institute of Banking and its ability to obtain international Finance (BIBF) for the year ending partnerships that give that extra 31st December 2009. quality and global approach to education. This is of course a The Council met three times win-win-win situation: the people during the year to review all of Bahrain win, the partnerships H.E. Mr. Rasheed Mohammed the operational aspects of BIBF. grow the BIBF reputation, and the Al Maraj The Council contribution is partners themselves experience Chairman of the Specific wide ranging, extending from Council for Vocational Training the benefit of being a part of supplying insight, feedback (Banking Sector) the regions financial hub. We and approval of both strategic recognise the continued support deliverables and the financial mix, of the many affiliate partners at to reviewing all tactical activity BIBF and welcome the new ones, and monitoring the progress and specifically the Association of direction of the Institute. Certified Anti-Money Laundering Since its inception, BIBF has Specialists (US); the International played a leading role in the Compliance Association (US); professional development of the and the Chartered Institute of Bahrain market. Since its early Personnel and Development (UK). days of focus on Banking and While our Director Mr. Garry Insurance to todays breadth of Muriwai will cover the more offerings across Academic and specific highlights of the 2009 Executive development, Islamic year, there are three highlights in Finance and the non-financial particular I would like to mention. but equally important Leadership and Management learning, BIBF Firstly, the global financial crisis has remained true to its purpose. impacted us all; however, as BIBF continues to remain focused well documented in the media, on its vision of being the Institute Bahrain dealt with and managed of choice for professional the adversity particularly well. development and deepening As Governor of the CBB and Bahrain’s strength in human Chairman of BIBF, I am better capital in supporting the growth placed than many to see both of the financial services sector. the supply and demand side The Council of 2009 noted of how the crisis affected BIBF. that BIBF’s achievements have As our member organisations certainly reinforced this resolve.
4 BIBF | Annual Report 2009 The 2009 Financial crisis affected us all. BIBF dealt with the market forces and impact on participant numbers better than most. It is a credit to both the history of BIBF and the support of both staff and members that we were able to weather the financial storm well. streamlined their processes their continued innovation achieved without the support of and carefully reviewed their in delivering Islamic Finance all the member organisations. strategies, human capital solutions,” Whether in their commitment to development, while never professional development of their Last but not least, the launch of neglected, was in the short term staff or as direct learning support the Assessment Centre under removed from the strategic for the many students who come Leadership and Management “must-do” especially in the areas through the doors and halls was clearly designed to add of high cost specialised training. of BIBF, their contribution to value to all decision-makers in I was pleased that the flexibility excellence is recognised, not only organisational recruitment. BIBF of BIBF allowed our members to BIBF but to the development has ensured that organisations to take full advantage of BIBF’s of Bahraini talent. Finally, on can now have the full spectrum morning courses. This achieved behalf of the Specific Council, I of tools taught locally which two significant outcomes. take this occasion to thank the filters down into improved It allowed organisations to Director and his staff at BIBF recruiting decisions. Ultimately ensure staff development for their professionalism and this creates a harmonious continued and achieved with dedication in the past year and environment for both the little additional impact on their I see this continuing into the business sector and the financial bottom line; and also future. employees within it. showed BIBF’s flexibility in being able to adjust its approach to In closing, BIBF is honoured to training and development to have been encouraged by the reflect the market demands. This support and vision of His Majesty, meant BIBF was able to achieve King Hamad bin Isa Al-Khalifa, a comparable net financial His Royal Highness, Prince performance as 2008 Khalifa bin Salman Al-Khalifa and His Royal Highness, The H.E. Rasheed Mohammed Secondly, the BIBF Islamic Crown Prince of the Kingdom Al Maraj, Chairman Finance Centre won the CPI of Bahrain and Deputy Supreme Financial global award for Best Commander, Prince Salman Training Institute in Islamic bin Hamad Al Khalifa. I, on Finance for the second year in behalf of the BIBF, thank them succession. To have received this for their invaluable patronage award for the second year in and guidance. I also extend my a row is an acknowledgement gratitude to my colleagues on the of BIBF (Islamic Finance) not Specific Council for their insight only in investing intellectual and support. BIBF’s success and monetary resources in in 2009 could not have been Islamic Finance Education, but
BIBF | Annual Report 2009 5 Vision: BIBF is the institute of choice for the development of business professionals. Mission: Leadership through providing ongoing education for business professionals.
6 BIBF | Annual Report 2009 Board of Directors
1 2 3 4
5 6 7 8
9 10
1 H.E. Rasheed Mohammed Al Maraj Governor; Central Bank of Bahrain 2 Mr. Adnan Yousef Chief Executive Officer; Albaraka Banking Group 3 Mr. Garry Long Chief Operating Officer; Investcorp Bank 4 Mr. Ibrahim Al Qassab Chairman of Bankers’ Union; General Federation for Bahrain Workers 5 mr. Jean-Christophe Durand Head of Territory; BNP Paribas 6 Mr. Murad Ali Murad Chairman; Bank of Bahrain & Kuwait 7 Mr. Redha Ahmed Hubail Assistant Undersecretary for Training; Ministry of Labour 8 Mr. Takuya Furuya President; Nomura Investment Banking 9 Mr. Yassir Al Baharna Chief Executive Officer; Arab Insurance Group 10 Mr. Garry Muriwai Director; BIBF
BIBF | Annual Report 2009 7 Director’s Report
The BIBF over-arching strategy distance learning programmes has been to ensure that we fully to complement our existing support Vision 2030 and the professional and academic development of the economy and programmes. the people of Bahrain. It has been very pleasing to note Once again we have looked that our member organisations outward, both nationally and have increased their attendance internationally, to see how BIBF on BIBF public courses by 11%. can best serve the financial sector. We have continued to grow our This has led to new programmes staff during the year to support Garry Muriwai and services, reviewing and this increased usage. We have Director redeveloping our existing been successful in recruiting in the programmes, a number of new areas of Banking, Leadership and alliances and an increased number Management and Insurance. of courses for our member There is no doubt that the Global organisations. Financial Crisis affected BIBF. BIBF provided 33 new public and The effect was felt by many external offerings during 2009. organisations decreasing their We forged new or stronger discretionary spend on fee paying partnerships including the Institute external courses, which resulted of Banking (Saudi Arabia) in in a small decrease in overall development of the Leadership participation in 2009. This was not Programme; the Kuwait Institute surprising given how many others of Banking Studies to provide BIBF in the sector performed in 2009. three classroom-based insurance I am very pleased to report that for diplomas in Kuwait; the Waqf the second year BIBF Centre for Fund and the new Graduate Islamic Finance won the CPI Islamic Sponsorship Programme; and the Business and Finance Award British Psychological Society which for the “Best Training Institute” enabled international accreditation globally. It is appropriate that I take of two of our Assessment Centre this opportunity to acknowledge programmes. Ties were also set the leadership of the Centre by up with various international Mahmood Al Shehabi. organisations in the development of new or revised professional Research is another area that qualifications as well as diploma BIBF has developed this year with level qualifications the setting up of the Research Department to support the BIBF has had another very development of research across successful year with over 15,000 centres. We have focused our participants on our programmes research activities on research that which has been achieved by supports the development of the providing a breadth of services to financial sector and have been the financial sector that has no running workshops to develop our equal in the region. This includes internal capability. assessment, coaching, consulting, tailor made courses, graduate I would like to thank all the CEOs development programmes, and senior managers that I have an international Leadership visited this year for their time, Development programme and ideas and support in ensuring
8 BIBF | Annual Report 2009 The Bahrain Institute of Banking & Finance (BIBF) continues to play a crucial role in supporting the financial sector of Bahrain. Our remit remains aiding the development of world class people for all the financial institutions in Bahrain. that BIBF provides the education and training to support Bahrain’s Total BIBF Offerings Summary Vision 2030 and ensuring that BIBF remains the Institute of choice for 09 416048 the financial sector. 08 445076 07 363415 Public Appreciation 06 327824 Offerings 53% Total Special Our success is mainly attributed Offerings 24% 09 213884 Professional to the support we receive from Qualifications 21% 08 237111 External our stake holders and business Programmes 2% 07 205144 allies added to the continuous 06 143455 support from the Government Professional Qualifications of the Kingdom of Bahrain. This 09 6324 success would not have been 08 8710 possible without the guidance 07 9045 2008 and encouragement of our Board 06 10377 of Directors represented by the External Programmes Specific Council for Vocational 09 75850 Public Offerings 51% Training (Banking Sector) headed 08 91016 Special Offerings 29% 07 54118 by H.E. Mr. Rasheed Mohammed Professional Al Maraj, Governor of the Central 06 66645 Qualifications 28% External Bank of Bahrain. Special Offerings Programmes 2% 09 119990
I would like to take this opportunity 08 108239 to thank all the members of BIBF 07 95108 staff as well as the Vocational 06 107347 Council and the many External Public Offerings partners and affiliates we have. 2009 Their commitment to BIBF was instrumental in ensuring the high standards we not only place on ourselves, but on our many and varied students and participants, boding well for both BIBF and our participants continued success in 2010 and beyond. I am looking forward to working with you all in the years ahead, and to the opportunities that this will bring to BIBF.
Mr. Garry Muriwai Director BIBF
BIBF | Annual Report 2009 9 Management Team
Garry Muriwai Hussain Ismail Dr. Mohammed AlKhozai Director Deputy Director Head of Centre: Academic and Executive B.Com - University of Auckland MBA - University of Durham M.Com - University of Auckland Graduate Programme for Executives - BA - University of Cairo Chartered Accountant (CA) Carnegie Mellon University MA - University of Leeds Executive Management Programme - PhD - University of London Columbia University Executive Management Programme Fellow Member of the Chartered Columbia University Institute of Bankers (FCIB)
10 BIBF | Annual Report 2009 Namasiku Liandu Dr. Sat Paul Parashar Husain Al Ajmi Head of Centre: Accounting and IT Head of Centre: Banking Assistant Director and Head of Centre: Insurance BSC (Hons) - Loughborough University M.Com - Delhi School of Economics MEd - Dundee University PhD - University of Delhi BSC - Insurance and Real Estate, PGDip Educational Research Arkansas State University (Professional), Stirling University ACII - Associate of Chartered Chartered Accountant (ACA) Insurance Institute GEDP Darden School of Business, University of Virginia BIID - Intermediate Insurance Diploma, BIBF BAID - Advanced Insurance Diploma, BIBF
BIBF | Annual Report 2009 11 Management Team
Mahmood Al Sheahabi Kadri Rizk Khalid Almedfaie Head of Centre: Islamic Finance Head of Centre: Leadership and Operations Manager Management MBA - Strathclyde University MBA - De Paul University DipBus - Al Hedaya Commercial Bachelor Degree in Management DipEng - Blackpool College of Higher School University of Helwan Education RSA II Certificate in Advanced Diploma in Marketing LCCI MCP, MCSA, MCSE, CCNA Accounting Certified Assessor in Management Development & Occupation Testing CSHLD University of Surrey.
12 BIBF | Annual Report 2009 Dr. Subhadra Ganguli Ali Abdulla Zubari Chris Carston Head of Quality Assurance Finance Manager Marketing and Communications Manager PhD (Economics) University of MSF - De Paul University California BSDP - BIBF BBS - Massey University TCMDP - BIBF
BIBF | Annual Report 2009 13 BIBF has multiple Centres of Excellence across differing disciplines. As a part of our management responsibilities, each Head of Centre has undertaken a review of 2009 in regards to trends and growth opportunities as well as an overall snapshot of performance for the year. BIBF has a robust strategic planning process from which we work towards achievement of our existing five year strategic plan. Within the strategic plan BIBF has nine core objectives. For the purpose of the 2009 Annual Report, each Centre has reported on its performance directly against these strategic objectives. The over-arching themes that follow make reference to already well documented issues facing not only BIBF but the financial sector, specifically the financial crisis. BIBF is pleased to note that in light of the varied performances of our members, BIBF itself weathered the impacts particularly well. Whether numerically in regards to financial performance, participant numbers, number of offerings and number of attendance hours we either marginally declined versus 2008 or achieved parity. Two key differences to these general findings were the substantive increase in public programme numbers, and the positive assertions made by the Centres on growth opportunities.
14 BIBF | Annual Report 2009 Trends and growth potential
Centre for Academic and Executive The Motor Insurance Technician Certificate (MITC) programme; and Insurance Accounting and Finance Expectations of increases in number of students and Certificate (IAFC) programme are planned to be applicants to all our programmes; launched in the second half of 2010; Forming a new partnership with an internationally Introducing programmes such as Anti Money accredited US University to replace our Bentley Laundering and Corporate Governance for the undergraduate programme. insurance industry; and a certificate programme in Centre for Accounting and Information Actuarial Science with external partners is being Technology scoped; Increased use of our training and educational The launch of the Associate of Risk Management offerings by non-member organisations; programme in Arabic in association with the American Institute of Chartered Property Casualty Increased use of professional offerings in accounting; Underwriters (AICPCU) is being prepared for 2010; Innovative program development within the Centres Ongoing promotion of its CII accredited professional Special Offerings; qualifications – PIC and PID, which are Arabic New partnerships with international professional distance learning programmes. organisations. Centre for Islamic Finance Centre for Banking Extending its geographical reach to provide its Our Public offerings remain the only relatively services to the Commonwealth of Independent States predictable product in its portfolio as these are (CIS countries), Africa, and the Far East; primarily designed to meet training needs of our Diversification of its scope of work. For example member organisations; increasing our involvement in consulting and research Professional qualification programmes, external services for the Islamic banking industry; programmes and special programmes were, and will Offering the Advance Diploma in Islamic Finance in be, highly volatile and influenced by the business Arabic as well as the Sharia’a Auditing Diploma; environment within the regional banking industry. Establishment of the Online Islamic Diploma. Centre for Insurance Centre for Leadership and Management Led by Bahrain, many countries in the region have given considerable emphasis on insurance regulations, Additional Accredited Qualifications with thus ensuring a well-conceived future to the industry. International bodies; For example: double-digit growth rates occurred last Strengthening our partnerships in Bahrain with year throughout many of the GCC insurance markets; Tamkeen and BDO; The introduction of Takaful business – insurance Extending our unique programmes such as the according to Islamic principles has emerged as an Graduate Development programme to the private engine of growth. The CBB, for example has taken sector and Executive Secretaries Diploma for the the lead in introducing minimum standards for Ministries; representatives of insurance companies in Bahrain; Significant value added opportunities for the With Takaful playing an important role in the region’s Bahrain market through the BIBF Assessment and rapid growth in insurance businesses, the Centre is Development Centre. validating a focused Takaful Insurance Diploma;
BIBF | Annual Report 2009 15 Review and highlights
Centre for Academic and Executive Internally, the Centre saw a minor change in its set up with the relocation of the Business English A year of mixed results for the Centre for Academic Programme to the Assessment Section of the Centre and Executive Education. We saw a combination of for Leadership and Management. growth in academic intake and decline in the uptake of executive education. Centre for Accounting and IT Our partnership with DePaul University witnessed During 2009 the Centre delivered courses in Business an increase in number of applicants in the MBA, Continuity Management, Business and Professional MSF, and the MSHR. The year also witnessed the Ethics, Special Offerings in Information Technology introduction of the new Master of Science in and External Offerings in Accounting and Finance for Islamic Finance. the first time. The Centre developed eighteen new courses (13 in Accounting and Finance and five in Our University of Wales validated Diploma is an Information Technology), for delivery during 2010. undergraduate degree of three years of study at BIBF with the fourth year completed at the Bangor While our public offering participant hours increased University of Wales. Now in its sixth cohort, we are by nearly 13%, 2009 saw a reduction of 10% in increasing in numbers annually. overall participant hours. This was largely due to a reduction in Special Offerings and a decline in 2009 saw the final intake of students into the Bentley Professional Offerings. We expect through the programme. Six classes graduated with a B.Sc. in development of new courses and other strategic Business Administration. We are proud to have changes during 2009, a recovery in 2010. offered such a programme and assisted in fulfilling ambitions of many young students in attaining a 2009 saw an addition of one full-time member to US Degree in Business. the Accounting and Finance faculty to strengthen the development and delivery of audit courses. A new The international financial crisis heavily affected country manager was appointed to focus on growing our expected performance in Executive Education. the professional courses provided through Morgan We cancelled a number of offerings due to low International. demand. Despite this, we are developing a new range of executive programmes in conjunction with The Centres financial performance in 2009 was lower international providers in order to mean the upward than 2008. As most participants on our programmes curve post crisis of executive education demands. are sponsored by companies we can logically infer the economic downturn affected companies to some December 2009 saw the launching of the new degree in regards to staff training and development. Leadership Development Programme (LDP) in an This ultimately reduced our planned revenue targets. alliance with our sister Institute, the Institute of Banking in (IOB) in Riyadh and partnering with our Centre for Banking long standing ally, the Darden Graduate School of Business of the University of Virginia. The inaugural The performance of the Centre for Banking for programme was to commence in early 2010 with 2009 was much lower than budgeted. The Centres a Foundation week in Bahrain to be followed by a expectation when setting the 2009 budget at the Leadership workshop in Riyadh. The final residential end of 2008 was for the sector to show in the second part of the programme was planned for late in March half of 2009 some signs of halting and perhaps mild 2010 for a period of three weeks. The programme recovery. This did not occur. was revamped after 10 years of the very successful Gulf Executive Development Programme in order Actual versus planned performance based on the to meet the changing demands of market and aforementioned factors did, as expected, negatively participant expectations. Intake numbers were affect External programmes and Professional positive for the first intake. qualification programmes like ACI, PRM, and CFA. From the Centres perspective the magnitude of the
16 BIBF | Annual Report 2009 external environment was felt in declines in numbers The major regional projects executed in 2009 of the flagship BSDP programme. The correlation included an exclusive agreement with the Kuwait in reduced numbers was clear as bank and other Institute of Banking Studies to provide BIBF’s three organisations’ sponsorships of their staff classroom-based insurance diplomas in Kuwait; substantially reduced. signed strategic contracts with a number for companies in the region to deliver customised training Bank nominations of Non-Bahraini‘s to our public programmes at their locations; and establishing offerings also substantially reduced, effecting the a strategic relationship with the Arab Forum of Centres Public offering participant hours, despite Insurance Regulatory Commissions (AFIRC) as part of three new public offerings added during the year. executing the Certified AFIRC Supervisor programme. The decrease in non-levy participants also added to reduction in public offering participant hours. Locally, we continued our initiatives including the Tamkeen sponsored Graduate Development The Centre however experienced an increase in Programme for 12 candidates; the Ministry of uptake of Special offerings. The actual participant Labor Insurance Diploma Programme for another hours in Special offerings increased by 38% in 2009 12 candidates that included On-the-Job Learning compared to 2008. programme at local insurance companies; and the Centre for Insurance HRD Fund ACII Programme for 30 candidates. The Centre for Insurance grew significantly in the year The Centre also witnessed growth in its participation 2009 compared to the previous year with all targeted rates in public programmes; revamped five insurance objectives achieved. The centre successfully executed diploma courses; revised the CII Takaful textbook in the training and examinations of CBB’s minimum English and translated the same to Arabic in order to qualifications initiative for life and general insurance be ready for April 2010 CII exams. agents. Over 500 candidates from across the region Of keynote significance we enhanced the BIBF undertook CII’s Award in General Insurance and relationship with CII to a more strategic level. We Award in Financial Planning courses followed by now are the largest partner in the Middle East. examinations. This initiative by the insurance regulator in Bahrain has attracted attention from other In light of the Centre growth, additional resource regulatory authorities in the region and the centre was added to the Centre in 2009 by the placement may soon be involved in taking these programmes of a Business Development Manager. His significant beyond Bahrain. professional insurance industry experience will aid the Centre for Insurance in meeting the growing The centre established authorised examination demands of its customers across the region. centres in 11 countries in the region for its flagship Arabic distance learning programme – Professional Centre for Islamic Finance Insurance Certificate (PIC), thus enabling over In 2009, the Centre retained its position as the ‘Best 1,200 candidates to undertake exams in their home Islamic Finance Training Institution’ in the annual countries. Successful completion of the enhanced PIC Islamic Business and Finance Awards in Dubai. certification enables candidates to directly achieve CII’s Diploma in Insurance via accreditation of prior The revenue of the Centre declined by 10 percent due learning scheme, which is also CII’s second highest to lower participant hours as compared to 2008. This professional qualification. was mainly due to the global economic downturn which had affected most business areas as a whole. The numeric response to the PIC programme We believe anecdotally, that most Islamic financial encouraged the soft launching of its Professional institutions tightened their budgets for high cost Insurance Diploma (PID) during the year that training, increased in-house training and increased will enable successful candidates to achieve the the “free to levy” Public courses for their staff. This prestigious ACII qualification from CII by year 2011. was the primary impact on the change in mix of demand for our Centre.
BIBF | Annual Report 2009 17 Review and highlights
The declines in Special offerings and External Our Business English Programme introduced a offerings in (-50% and -42% respectively) were Foundation Level to compliment the needs of the nearly offset by the growth in Public offerings market. This was designed as a preliminary to the four and Professional qualifications (+54% and +25% levels and provides a balance of skills development respectively). and graded language practice taking the learner to intermediate level. During the three BEP terms a total Key 2009 developments and initiatives included: of 17 classes were conducted with a total of 342 • Launch of the DePaul BIBF Masters in Science in students. Islamic Finance After becoming a Corporate Partner of the Chartered • Launch of the Wales Validated Islamic Finance Management Institute (CMI) UK in early 2008, Diploma the Centre for Leadership and Management ran the Leadership Skills Programme (an International • Establishment of the Waqf Fund Graduate Diploma in Management) which was sponsored by Sponsorship Programme Tamkeen. This programme was for Bahraini business • Completion of the National Commercial Bank owners and upper level managers, using action-based development programme on Islamic Finance and training methodologies to allow them to develop Sharia’a Auditing and implement their management and leadership capabilities for improved productivity and success • Establishment of the Public Seminar Series on in the work place. 2009 saw the successful growth Islamic Finance of the programme and to date, 35 candidates have successfully completed and graduated from the Centre for Leadership and Management programme and a further 112 are enrolled and Five new Public Offering courses were introduced actively participating. by the Centre due to market demand and feedback In addition, the first three cohorts of the Certificate from Training Managers. The result of these additions in Personnel Practice (CPP) and the first cohort of the contributed to the Public offering increase of 6% Certificate in Training Practice (CTP) programmes of vs. 2008. CIPD, UK successfully completed the course. The net In September 2009, the Assessment and result of this contributed to increase in Professional Development Centre at BIBF was transformed with an programme offerings by 70% vs. 2008. additional range of services. This included Placement testing, Training Needs Analysis, Personality Assessments, Leadership Styles and Team Efficiency Evaluations, Competency Based Interviewing, Career Guidance, and Coaching. The Centre launched three new courses, of which two are accredited by the British Psychological Society, to support HR and Training professionals in Bahrain and the region. The objective was to raise awareness about the importance of psychometric tools in pre-training and post-training assessment.
18 BIBF | Annual Report 2009 Strategic Objective: 01
Ensure the profile of BIBF positions us as the institute of choice for business professional development.
In 2009 the BIBF Centres contributed Centre for Insurance to this objective by: • Being the only institution authorised Centre for Academic and Executive by CBB to conduct minimum standards qualification for • Ensuring that all courses were appointed life and general insurance delivered at a high standard and representatives; measured by actioning and applying learning’s from class assessments; • CII’s only strategic partner in the region offering fully accredited • Continuously improving the teaching professional insurance qualifications; and learning aspect of our courses, through reviews and modifications • Offering courses and programmes suggested by Moderators, External based on insurance industry Examiners and QA managers. requirement. Centre for Accounting and IT Centre for Islamic Finance • Ensuring that all courses were • Increasing the amount of available delivered at a sufficiently high courses for both external and standard to uphold the good public offerings including Islamic reputation currently enjoyed by the Economics for Bankers; Murabahah BIBF. This was achieved by enabling finance for retail; Istisna’ for retail; the lecturers to attend relevant Sharia’ for bankers; Islamic Credit both subject specifying and delivery Cards; Islamic Funds Management; methodology, continuing professional Real Estate Advisory; Islamic Mutual development courses and by class Funds; Economic Efficiency for Waqf observation, peer review, and analysis Products; and the ICMA Primary of participant feedback; Market Certificates. • Creating active liaisons with reputable international organisations, for example IIA (USA), ICAEW (UK) and BPP Learning Media to seek to provide the best there is; • Continually improving how we deliver courses in response to feedback from course participants and their organisations. This has included actions such as changing the financial statements used for delivering a given course as a result of feedback from participants. 01
Ensure the profile of BIBF positions us as the institute of choice for business professional development.
Centre for Banking Offering new professional qualifications: • IDC-ICA, UK Creating new public offerings: • ACAMS, USA • Project Appraisal and Financing • APRM, USA • Economics for Bankers • A revamp of the BSDP qualification by • Quantitative Methods for Risk revising study material and providing Management a pathway forward for BSDP Launching new external programmes: participants to Newcastle University, • Value Advisory - A New Toolkit for UK to obtain a combination of Corporate Bankers international experiences and an • Corporate Governance - Challenges undergraduate degree. and Best Practices • Global Financial Crisis - Surviving Centre for Leadership and and Thriving Strategies for 2009 Management • Implementation of Basel-II (Pillar II) • Debt Restructuring • Offering a variety of customised • Investment Representatives special offerings tailor made to Programme (Series-7) Banks and organisations to fit their • Implementation of Basel-II (Pillar I) requirements and future plans • Real Estate Investment and success of their businesses. • Counter party Risk Measurement These included Standard Chartered and Management Bank, Khaleeji Commercial Bank, • Advanced Financial Modeling Yokogawa, BDO Jawad Habib, and • Credit Risk Measurement and APM Terminals. Management • Market Risk Measurement and Management • Forex online Trading BIBF | Annual Report 2009 19 20 BIBF | Annual Report 2009 Strategic Objective: 02
To maintain proactive business partnerships with our levy payers and other clients to achieve successful results for both their organisations and the individuals within.
In 2009 the BIBF Centres contributed Centre for Banking to this objective by: • Networking for proactive business Centre for Academic and Executive partnerships with our levy payers and other clients to achieve • Maintaining regular contact with successful results for both their training managers and discussing organisations and the individuals courses high demand in nature eg, within was regularly undertaken Corporate Governance. through meeting with training Centre for Accounting and IT managers, bank professionals at BIBF and during conferences. • Continually talking with training managers responding to their Centre for Insurance requests and seeking to meet them • Conducting regular visits to at their ‘point of training need’. local insurance organisations This included developing new in connection to their training Public Offerings in response to their requirements and offering assistance requests and as a proactive step to to relevant individuals for CII provide courses the Centre believed accreditation of prior learning as a was useful to them; value added service; • Approaching existing clients offering • Holding discussions with insurance them new courses in response to professionals in connection to feedback from the participants of launching new programmes and a recently delivered course. For revising existing ones; example during 2009 this resulted in two new special offerings to existing • Providing tailor made long-term clients; training programmes via mutual agreements. • Creating unique products for clients; either in response to a specific request or by analysis of course participant feedback. An example is a course delivered to one of our long standing clients in 2009 that was completely different from that delivered over the previous four / five years, as a result of assessing the comments made by participants. 02
To maintain proactive business partnerships with our levy payers and other clients to achieve successful results for both their organisations and the individuals within.
Centre for Islamic Finance Centre for Leadership and Management • Conducting a number of direct contact • Introducing five new public offerings visits to the Islamic Financial Institutions to deliver upon market requirements. in Bahrain and Dubai. We utilised these These included: visits to meet functional Heads of HR or Training and obtain feedback on existing - Emotional Intelligence; levels of service performance as well as - Problem Solving and Decision highlighting our new products. Client Making Techniques; visits included Al Baraka Islamic Bank, - Human Resources Planning Gulf Finance House, Dubai Islamic Bank, Techniques; Bahrain Islamic Bank, Ajman Islamic Bank, - HR Management for Non-HR and Noor Islamic Bank; Managers; - Employee Training and Development. • Facilitating various special offerings in Bahrain, the Gulf, and Eastern Europe. • The Centre also regularly met with Clients included National Commercial member organisations and other clients Bank, Saudi Arabia; Abu Dhabi Islamic to discuss special offerings as updates Bank, UAE; Caspian International or new requests. Investment Company, Azerbaijan; Commercial Bank of Qatar, Qatar; Islamic Development Bank, Saudi Arabia; Standard Chartered Bank, Bahrain; and Khaiji Bank, Qatar. BIBF | Annual Report 2009 21 22 BIBF | Annual Report 2009 Strategic Objective: 03
Build alliances with internationally recognised professional bodies.
In 2009 the BIBF Centres contributed in-house accounting and to this objective by: finance courses; Centre for Academic and Executive With Morgan International for the world class course materials for CPA • Maintaining our strategic alliances and CMA. with: - DePaul University Centre for Banking - Bentley University - University of Wales • Forming new alliances during the - Darden Graduate School of Business year with Newcastle University, UK; of the University of Virginia ACAMS, USA and ICA, UK; • Whilst not new, we strengthened • Renewing alliances with professional formally our ties with our sister bodies like CFA, PRM, and ACI Institute, the Institute of Banking which were also strengthened by (IOB) in Riyadh in developing the achieving space on their web pages new Leadership Development as education partners. Programme (LDP) in conjunction Centre for Insurance with Darden. • Maintaining and strengthening Centre for Accounting and IT our alliances with The Chartered • Building alliances with the IIA (USA) Insurance Institute (UK) and The to offer their internal audit courses; American Institute for Chartered Property Casualty Underwriters / With ICAEW (UK) to deliver their Insurance Institute of America (USA). Certificate in Accounting, Finance and Business; Centre for Leadership and Management With ACCA (UK) to deliver their Diploma in International Financial • Maintaining and building upon Reporting; existing alliances with International bodies such as CIPD, CMI and SHL. With ICDL GCC Foundation with the view to delivering ICDL courses from 2010; With BPP Learning Media to use their world class course materials for Strategic Objective: 04
Ensure that all participants become BIBF ambassadors.
In 2009 the BIBF Centres contributed • Aiding trainees’ careers by helping to this objective by: them to get their CII credits as an ongoing support service. This service Centre for Academic and Executive has led us to gain newer clients via • Receiving very positive feedback word of mouth from existing trainees about the quality of our students and graduates. and other graduates who regularly Centre for Islamic Finance participate in the seminars, workshops and youth conferences • Delivering courses to the participants’ in Bahrain and globally. satisfaction. Centre for Accounting and IT Centre for Leadership and Management • Delivering courses to the participants’ satisfaction. • Continuously following up on course evaluations to modify and Centre for Banking action activity applicable to not only • As a matter of practice, inviting programme quality improvement, but all passing out participants of in direct response to customer needs. the public offerings, special offerings, professional qualification programmes and external programmes to stay in touch for any further assistance in their journey and application of knowledge; • Organising a BSDP Alumni meet to hear their views on strengthening the existing BSDP qualification. Centre for Insurance • Creating practical case studies that enable shadowing of actual work atmosphere. This aided relevant participants to become ready for employment with most minimum on-the-job training. This strategy has been promoted by our trainees at all levels; BIBF | Annual Report 2009 23 24 BIBF | Annual Report 2009 Strategic Objective: 05
Ensure that our programmes are recognised as world class.
In 2009 the BIBF Centres contributed Centre for Insurance to this objective by: • Producing CII qualifications for Centre for Academic and Executive Takaful (Islamic Insurance), which is now part of ACII level units; • Ensuring that our linkages with world class universities and institutes • Our class-room based insurance remained strong. Our partnerships diplomas (English and Arabic) earn are in place to ensure our graduates 210 credits from CII, the highest for not only have a place within any any institution in the region; relevant role within Bahrain but has a globally appealing undergraduate • Earning CII’s Diploma in Insurance or post graduate qualification. certification via accreditation of prior learning through our Arabic distance Centre for Accounting and IT learning programme, the Profession Insurance Certificate (PIC). • Making linkages with world class organisations in terms of Centre for Islamic Finance qualifications or course materials. • Receiving the internationally Centre for Banking acclaimed ‘Best Islamic Finance Training Institution’ award in the • Positioning our programmes annual Islamic Business and Finance through newspaper ads as world Awards for the second year running. class and adopting world class pedagogy and a high class faculty; Centre for Leadership and Management • Obtaining recognition as the EXCLUSIVE educational partners in • Providing accredited programmes Bahrain for leading International including Cambridge, CMI, CIPD professional bodies like Association and CIM. of Certified Anti-Money Laundering Specialists (ACAMS), USA and International Compliance Association (ICA), UK. Strategic Objective: 06
Promote Bahrain’s position as a leading regional financial centre.
In 2009 the BIBF Centres contributed Centre for Insurance to this objective by: • Defining the Centre for Insurance Centre for Academic and Executive and its strong affiliations as the foremost insurance learning and • Using case study examples from the qualifications provider in the region. Bahrain market in teaching materials This has contributed to Bahrain’s and exams; position as a leading regional • Promoting the Islamic Diploma financial centre. and referencing Bahrain as a world Centre for Islamic Finance leader in Islamic Financial Products and Services. • The benefit of receiving the ‘Best Islamic Finance Training Institution’ Centre for Accounting and IT award reinforced the strength of • Using examples from Bahrain in Bahrain’s Islamic Finance education course materials, including those authority. This supports our drive delivered outside Bahrain, whenever to align where possible the 2030 possible. For example by using the vision in regards to financial sector TAIB analysis report of SABIC when expertise. delivering a course at Saudi Aramco; Centre for Leadership and • Making reference to the Bahrain Management Stock Exchange in appropriate • Delivering our products to new contexts, while delivering courses or markets (for the Centre) such developing course materials. as Qatar. This was a tailor made Centre for Banking programme for high caliber management trainees in the Central • Having every programme, Bank of Qatar over three phases in particularly public offerings different areas such as Leadership and professional qualification and Management, Banking, Finance programmes designed, launched and Islamic courses. A total of 22 and delivered with an express aim courses were successfully completed to contribute to promote Bahrain’s by the trainees. position as a leading regional financial centre; • Aiming to provide the latest knowledge and skills in every functional area of the banking industry, across all our public offerings, professional qualification programmes and external programmes. BIBF | Annual Report 2009 25 26 BIBF | Annual Report 2009 Strategic Objective: 07
Attract and retain the best staff.
In 2009 the BIBF Centres contributed Centre for Islamic Finance to this objective by: • Employing two international caliber Centre for Academic and Executive faculty members and an additional member within the Administrative • Retaining staff with international function to support the planned qualifications and local and growth in the Centres offerings. international experience. In 2009 our turnover was 0%. Retention has been near enough 100% in 2009. One faculty staff Centre for Accounting and IT member departed BIBF in 2009, with • Employing international caliber extended leave on medical grounds staff with local experience in the for the Head of Islamic Finance also required areas. Retention has been occurring mid-year. In the interim, near enough 100% in 2009. One the Centre was led by the Deputy administrative staff member left Director; the Centre, however there were no • Increasing the use of industry faculty departures. experts by the Centre. Centre for Banking Centre for Leadership and • Adding one new full-time Management faculty who came with excellent • Recruiting specialised and qualifications and significant experienced lecturers, and providing international banking experience. The them with a motivating package part-time faculty includes top notch as well as an opportunity to professionals with wide industry directly affect the human capital experience. It is worth mentioning development of all participants. that despite these persons having The breadth of programmes the other opportunities, they prefer to Centre offers also provides the scope continue teaching at BIBF. for significant staff professional Centre for Insurance development and teaching both locally and internationally. • Employing high caliber ACII certified training staff and industry experienced support team to provide its services. Strategic Objective: 08
To expand the business scope of the institute, and sustain our competitive differentiation, through continuous innovation and improvement of products, services and resources – human, technological and physical.
In 2009 the BIBF Centres contributed least one public offering programme to this objective by: at BIBF. One of the faculty members obtained Trade Finance Specialist Centre for Academic and Executive Certificate, another qualified CFA • Continuously updating and level –I and the third, Series-7 reviewing the teaching and learning programme of the BIBF. Technological materials to meet international and infrastructural support is provided standards; as required by each faculty. • Identifying staff development needs Centre for Insurance annually and putting required • Expanding its business development plans in to place to achieve these and customer service team during development initiatives. 2009 due to meeting increased Centre for Accounting and IT demand from individual insurance personnel and companies for our • Identifying the appropriate staff programmes and services; development needs during the annual review and putting • Closely working with the industry to appropriate plans in place to achieve launch six new programmes in 2010. their developmental needs; Centre for Islamic Finance • Continually improving our materials • Extending its geographical reach and and modes of delivery to meet our expanding its menu of products. course participants at their point The Centre for Islamic Finance has of need. This is done by updating extended its geographical reach by materials that have naturally having new clients in Qatar and the become out of date (for example CIS countries, specifically Azerbaijan. due to change in financial reporting We also launched the Masters of regulations or just the passage of Islamic Finance programme with time – eg, replacing old financial De Paul and the Wales Validated statements with more recent ones. Islamic Diploma. Centre for Banking • Ensuring the faculty is continu- ously encouraged to add new programmes and undertake self development. Most faculty members of the Banking Centre attended at BIBF | Annual Report 2009 27 28 BIBF | Annual Report 2009 Strategic Objective: 09
Provide infrastructure for effective and efficient operations.
In 2009 BIBF achieved the following: • The establishment of the Customer • BIBF’s new online library system and Service section that deals with students centre was made available all written (whether email, or to all members to browse the BIBF online) participants’ feedback was catalogue and library contents. a vital step towards supporting • The BIBF registration department BIBF’s strategy in aligning its continued to visit member quality assurance framework organisations, introducing the online to International standards. The registration system, which will aid Customer service area had the training managers in monitoring additional registration staff placed their employee progress. whose role was to more directly interact with our members’ organisations. • In order to meet the growth in new participants, a parking zone which accommodates over 80 cars was provided by BIBF. The location immediately across from the front entrance reduced the level of concern of availability and proximity of parking to BIBF. • To meet growing demand staff were added to BIBF in 2009 necessitating the need for additional office space. A building extension was added as well as redesigning existing offices to meet staffing requirements.
Centre for Academic and Executive Centre for Accounting and IT
Participant Hours The mission of Academic and Executive Learning The Centre for Accounting and IT has been in Centre is to provide world class programmes in existence as a stand-alone entity since January 09 the124802 area of Academic and Executive education via 2008. It delivers courses in Accounting, Finance and 08 strategic132267 partnerships with reputable and accredited Information Technology to member organisations 07 international121765 universities from the United States employees (Public Offerings), by specific request 06 78590 Total and the United Kingdom. to any organisation (Special Offerings), for professional qualifications to all individuals 09 762 The Centre offers academic programmes at (Professional Offerings), and of a specialist nature 08 2208 undergraduate and post-graduate level, as well using external specialists (External Offerings). The 07 1216 as executive education development for senior 06 513 Public Offerings can be attended by non-member management. External Courses organisation employees for payment of the 09 69723 appropriate course fee. This is what generates the 08 53756 revenue reported under public offerings. 07 57790 Our Information Technology courses are in the 06 40489 Participant Hours Wales main, standard Microsoft application courses. They 09 124802 09 315 are offered by a wide variety of competitors and 08 132267 Participant Hours 08 1248 appear price sensitive in customer decision making. 07 121765 07 1782 09 The 4855Centre9 is diversifying its offerings in Information 06 78590 06 486 08 53972 Total Technology to cater for demand for courses in areas GMAT 07 such4848 as9 ethics, business continuity management, 09 762 09 33029 06 and4218 8project management to the extent that these 08 2208 08 31847 Total are impacted upon by information technology. 07 1216 07 16398 09 6740 06 513 External Courses 1% 06 3497 08 11999 External Courses Wales 11% DePaul GMAT 6%07 9163 09 69723 09 7104 DePaul 26%06 9558 08 53756 Bently 0% 08 4896 Professional Qualifications Participant Hours English 56% 07 57790 07 7056 09 528 09 48559 06 40489 06 7488 08 0 Wales 08 53972 Bently 07 0 07 48489 09 315 09 13869 06 0 06 42188 08 1248 Public 08 38312 External Programmes Total Offerings 60% 07 1782 Special 07 37523 09 12322 09 6740 Offerings 25% 06 486 06 26117 08 16284 Professional GMAT 08 11999 Qualifications 14% English 07 14314 07 9163 External 09 33029 Programmes 1% 06 14125 06 9558 08 31847 2009 Special Offerings Professional Qualifications 07 16398 09 2896099 528 06 3497 External Courses 1% Wales 11% DePaul 08 2568089 0 GMAT 6% 07 25012 07 0 09 7104 DePaul 26% 06 18505 Bently06 0 0% 08 4896 Public Public Offerings EnglishExternal Programmes56% Offerings 60% 07 7056 Special 06 7488 09 12322 Offerings 25% 08 16284 Professional Bently Qualifications 14% 2009 07 14314 External 09 13869 Programmes 1% 06 14125 08 38312 Special Offerings 07 37523
06 26117 09 28969 English 08 25689
07 25012
06 18505 2009 Public Offerings
2009
BIBF | Annual Report 2009 29 Participant Hours
09 75326 08 Centre for Banking100644 Centre for Insurance 07 96081
06 87885 TotalThe Centre for Banking is the leading provider of The Centre for Insurance is dedicated to the
09 training29531 and education services to banking and advancement of insurance as a professional
08 financial 5753services9 industry in Bahrain, Qatar and service in Bahrain and the broader Middle East
07 Saudi Arabia.54934 Our programmes are aimed at both region, providing world-class professional learning 06 organisations40221 and individuals within the financial opportunities that improve insurance performance. Professionalsector Qualifications and range from entry level executives to We work closely with our customers to deliver 09 1413top and senior level managers across all Banking tailor-made packages that help their staff achieve 08 1170functions and disciplines. corporate goals. Whether our clients seek to 07 4251 improve the quality of their service or increase 06 5582 revenues, we can provide solutions. External Programmes Participant Hours 09 11322 The Centre for Insurance at BIBF is today, the
08 09 8185 75326 largest specialised insurance training and 07 08 10572 100644 professional qualifications provider in the Middle
06 07 9611 96081 East. To underpin the many vital initiatives of Special06 Offerings 87885 the insurance regulators and to capitalise on the Total External 09 33060 Programmes 2% growing demand to qualify the insurance personnel 09 29531 Public 08 33750 Offerings 44% in the region, BIBF and the UK based Chartered 07 08 26324 57539 Special Insurance Institute (CII) have entered into strategic Offerings 15% 07 54934 06 32471 Professional partnership towards adding professional advantage Public06 Offerings 40221 Qualifications 39% for insurance people. Professional Qualifications
09 1413 Commencing from the minimum standard 08 1170 qualifications, all of BIBF insurance certificate Participant Hours 07 4251 programmes, diploma programmes and 06 5582 09 professional qualifications56747 fetch maximum number External Programmes 08 of accreditations39962 from the CII, which is unique to 09 11322 07 the Middle4428 E3ast region. The centre’s professional 08 8185 06 activities have earned61708 BIBF the membership of the 07 10572 Total 2009 Institute for Global Insurance Education (IGIE), 06 9611 09 which is3507 an3 US-based association, comprised of Special Offerings 08 22569 External selected independent international insurance 09 33060 Programmes 2% 07 24090 Public 06 institutes.31083 08 33750 Offerings 44% Special Offerings 07 26324 Special Offerings 15% Participant Hours 09 21674 06 32471 Professional Qualifications 39% Public Offerings 08 09 17393 56747
07 08 20193 39962
06 07 30625 44283 Special Offerings 62% Public Offerings 38% Public06 Offerings 61708 Total
09 35073
08 22569
07 24090 06 31083 Special Offerings 2009 09 21674
08 17393
07 20193 2009 06 30625 Special Offerings 62% Public Offerings 38% Public Offerings
2009
30 BIBF | Annual Report 2009 Participant Hours
Centre for Islamic Finance 09 Centre for Leadership59077 and Management 08 60822
07 28296
The Centre for Islamic Finance is the total solution 06 At the Centre3479 for5 Leadership and Management, we provider for Islamic Finance learning in the trulyTotal believe and practice the philosophy of “the
region. The Centre has a comprehensive range 09 greatest assets25015 of any organisation are its people”.
of services that are superior, contemporary and 08 Our belief14730 is that Leadership is everyone’s business. relevant to the needs of the industry, all of which 07 Our6102 objective is to add value in transferring classroom is drawn upon the support of the Central Bank 06 learning4575 to the workplace. of Bahrain, the Waqf Fund, the Islamic banking Professional Qualifications We are focused on developing and improving human community, and the Islamic infrastructure 09 563 resources to build individual and organisational institutions. The Centre focuses on the 08 0 capability and efficiency.L eadership and Management provision of professional courses and academic 07 128 courses are designed to improve competencies qualifications at the diploma, undergraduate, or 06 850 byExternal developing Programmes the knowledge, skills and attitude post-graduate level that is delivered by a mix of 09 of people.7139 We adopt a professional approach to Participantthe Centre’s Hours own internal faculty or by our world- 08 Leadership21197 and Management development by wide industry experts. 07 2507 09 51537 ensuring that a positive learning environment is 06 6017 08 As the Islamic banking industry57409 endeavours to established and maintained in the classroom. Special Offerings 07 maintain its2450 resilience1 in the face of the global 06 financial 2265crisis,8 the stable growth of Islamic 09 26360 financeTotal training and education has continued 08 Participant2489 Hours5 07 19559 Public 09 internationally.2855 8Being strategically located in 09 59077 Offerings 45% 06 23353 Special 08 Bahrain, which22784 is the hub of Islamic Banking, the 08 60822 Public Offerings Offerings 42% 07 Centre 1439has6 used this competitive advantage by 07 28296 External Programmes 12% 06 11024 establishing itself as a prominent contributor in 06 34795 Professional Qualifications 1% theProfessional dissemination Qualifications of Islamic finance knowledge Total 09 in 3058the region. The strategic location, coupled 09 25015 08 with5332 the Centre’s access to Islamic Finance 08 14730 07 industry3450 experts, has distinguished the Centre 07 6102 06 as 3432compared to other primary Islamic finance 06 4575 learningExternal Programmes providers within the MENA region, Professional Qualifications 09 South9994 East Asia, or the UK. 09 563 08 22781 08 0
07 2635 07 128 06 Participant5809 Hours 06 850 2009 Special Offerings External Programmes 09 51537 External 09 9927 Programmes 56% 08 57409 09 7139 Public 08 6512 08 07 24501 Offerings 19% 21197 07 4020 Special 2507 06 22658 Offerings 19% 07 06 2393 Total Professional 06 6017 Qualifications 6% Public Offerings Special Offerings 09 28558 08 22784 09 26360
07 14396 08 24895 07 19559 Public 06 11024 Offerings 45% Professional Qualifications 06 23353 Special Public Offerings Offerings 42% 09 3058 External Programmes 12% 08 5332 Professional Qualifications 1% 07 3450
06 3432 External Programmes 2009
09 9994
08 22781
07 2635
06 5809 Special Offerings External 09 9927 Programmes 56% Public 08 6512 Offerings 19% 2009 07 4020 Special Offerings 19% 06 2393 Professional Qualifications 6% Public Offerings
BIBF | Annual Report 2009 31
2009 Quality Assurance Department
The department, set up in 2008 to tackle the growth Quality Assurance Agency for Education and of BIBF in the upcoming years, created a set of Training (QAAET) and Ministry of Education codes of practice in several areas of academic quality (MOE). QA in BIBF will be actively working with benchmarked to the Quality Assurance Agency, Bahraini counterparts for complying with national UK. These codes of practice provide the framework regulations but nevertheless aim to continue for benchmarking current systems in BIBF against with its annual review of programmes by an international standards and provide guidance for international panel of QA experts from around constant improvement. The department is also the globe. BIBF plans to invite participation from responsible for implementing code of practice for Bahrain’s QAAET and MOE in such initiatives to BIBF as a whole, organising academic infrastructure strengthen its ties with the local bodies. The annual for the institute and maintaining all QA related review is important for BIBF’s self reflection and in committee structures in BIBF. The department evaluating its achievements against an international conducts annual review of programmes in all centres framework developed in-house on the one hand and provides action plan and implementation and for its international collaborators to value the timelines in agreement with the centres. The important role of QA in BIBF on the other. department is responsible for working with Centres The aim of BIBF to achieve Taught Degree Awarding and their international collaborators in seeking Power Status (TDAP) will further enhance the role of equivalence of BIBF systems with theirs and adopting QA as BIBF systems, benchmarked to international BIBF systems, where applicable. The department standards, will be ready and functioning at par with is responsible for complying with all local and those of its partners for this purpose. international QA authorities supervising BIBF in the area of Quality Assurance. By the end of 2009, QA became a fully developed department working with all centres of the The department lies at the heart of BIBF’s core organisation in implementing our codes of practice. business – learning and teaching. Academic QA A uniform brochure for all centres has been is involved in everything that BIBF does to provide developed; work is in progress for achieving a quality training and education for its clients and uniform registration/ application form for the students. BIBF is the pioneering organisation in institute. Lesson plans, feedback mechanism, the region which has created a fully developed QA customer service functions, collaborative provision, system benchmarked to international standards. faculty and staff development, recruitment and It is also the only organisation which has started promotions process, programme review and design implementing such international best practices in implementation, robust and rigorous assessment most of the areas of learning and teaching. In this mechanisms etc have been initiated. Most respect, BIBF enjoys an unparalleled position of importantly, annual review of all programmes has competitive advantage over similar organisations taken place in BIBF for the first time where centres in the region. This also means that BIBF is ready have agreed to implementation timelines of QA to create a consulting division for providing such action plan. guidance and advice to other organisations to help them develop international best practices and their implementation. Future growth of BIBF will enhance the important role of QA even further. The department’s role and importance will increase in the future as the importance of achieving high quality training and education seems to be a national agenda for the government of Bahrain through various organisations like
32 BIBF | Annual Report 2009 Marketing and Communications Department
BIBF employed a Marketing and Communication every two weeks. We also looked at improving Manager at the start of 2009. BIBF identified the profile of the BIBF brand by placement daily the need for an independent department whose on the front page of the GDN Business page. This responsibility was to not only integrate all elements initiative was directly attributed to the successful of the marketing and communications flows negotiation of two new business development inwards and outwards to / from BIBF, but to do so opportunities within the Accounting Centre. in a planned and coherent manner. • We revamped our website and more specifically There were a number of strategic and tactical the home page as an interim solution to better initiatives undertaken in 2009. These included: provide users a more friendly and assessable experience. Ultimately the outcome of this • The development of a Marketing and exercise translated into tendering for a website Communications Strategic Plan, which was provider who would be able to align the strategic submitted to and approved by the Board. marketing objectives in written form into • Development of an annual tactical plan technologic output in regards to the website. In including by initiative, activity, associated budget November 2009 tenders were released by BIBF implications and specific budget reporting codes seeking a technology partner. The provider was in order to create transparency of marketing assessed and announced in April 2010. expenditure. • We also in the latter half of 2009 began to • The revising of all current role profiles of the address our e-communications. The majority of department staff. This achieved the benefit of the vast database of participant’s details was allowing staff to have a clearer view of their roles centralised between Marketing and Operations and responsibilities as well as identifying the (Registration). It has always been the core of specific volume of planned work that was needed the Registration Department but there had to improve BIBF’s profile.T he benefit by the end been limited usage by the marketing and of 2009 was that staff had a much clearer sense Communications team. We initiated in October of their performance and more specifically how 2009 the first branded email campaign to both this would translate into not only remuneration for members and non-members. This provided us 2010, but areas of professional development. with an opportunity to clearly highlight all our programmes on a consistent and planned basis, • The tendering for an advertising agency allowing us to send both bulk and segmented to support all new BIBF creative work. The email communications. By year end we had no successful agency came on board to partner substantive results on effectiveness, however, with BIBF in March 2009. The scope of their we did find that the market was comfortable in work ranged from Annual Report to preliminary receiving specific emails from us, with less than recommendations for developing brand a 1% unsubscribe rate on emails sent. This was standards for all BIBF material which to date with a preliminary database size of 4500. were not in existence. • The department also oversaw the implementation • We formed a one year strategic relationship with of the Annual Report and both the 2009 and GDN for the purpose of showcasing the thought 2010 Course Catalogue. leadership talents of the BIBF Management Team in their various areas of expertise, as well as a mechanism to update the market with our relevant offerings available for training needs. This translated into 24 articles of one page each
BIBF | Annual Report 2009 33 Research Department
Research is an area that BIBF developed in 2009 A Research Methodology workshop occurred on with the setting up of the Research Department in November 12, 2009, and a Case Writing Workshop September. Dr S P Parashar, Head of the Banking on November 19, 2009. 15 faculty members Centre was assigned Head of this new department. of BIBF participated and benefited from these The mission, vision, and strategic plan of the workshops. Research Department for 2009-11 were finalised. The workshop presentations were video recorded The mission of the Research Department is to and kept in the BIBF Library for reference. provide research services to the banking and The Research Department has plans to organise business community of Bahrain and the region. more such workshops in 2010 to benefit BIBF Its vision is to be the single window for academic faculty and financial services industry players and applied research, research capacity building interested in research. and enhancement, and research publications focused on and of interest to banking and business community of Bahrain and the region. The strategic plan of the Research Department finalised for 2009-11 aims at (i) creating a research culture at BIBF (ii) organising research methodology workshops (iii) organising case writing workshops (iv) seeking International partnerships (v) networking with leading researchers, research funding bodies, and publishers (vi) supporting presentation and publication of quality research. It was also decided to constitute a research advisory committee comprising all professional Centre heads and industry representatives including CBB, EDB, BSE, Waqf Fund, BCCI, BAB, to advise and support the development of the BIBF research department.
34 BIBF | Annual Report 2009 Special Projects
In the aftermath of the 2009 financial crisis, BIBF in risk management. The third and final step is has gathered a group market participants in for candidates of these programmes to attain collaboration with CBB to create a strong pool of international qualifications like the PRM and FRM. Risk professionals geared up for the post crisis era. Providing financial advice is considered a very This initiative culminated in the development of a crucial aspect of the financial sector growth. Risk Certification programme for all entrants into Professionals who are responsible for providing the Risk profession of Bahrain’s financial services such a service need to be thorough in the sector. This programme will provide the minimum knowledge base of the products they are selling qualification recognised by CBB and designed and the various repercussions of investments and delivered by BIBF as the sole provider of the in those products by varying client/investor qualification. The programme is unique and one profiles. Selection of qualified professionals of its kind – encompassing all the different areas for such an important task as financial advice of Risk in conventional, Islamic and Insurance becomes a challenge for any regulator and more areas and their mitigation thereof. The programme so for Bahrain markets which are, similar to has been developed by BIBF’s visiting professor other regional markets, evolving continuously Dr. Sudhakar Raju who has a joint appointment and progressively. The Central Bank of Bahrain with Helzberg School of Management in Kansas commissioned BIBF to take the lead in setting City and Kennedy School Government in Harvard and monitoring such standards for the regulator. University in the US. The programme will be BIBF has worked with market participants and launched in June 2010 and is the only programme international partners in collaboration with in the region for setting minimum entry criteria for CBB, to develop an all encompassing minimum Risk professionals by a central bank and the only qualification for an entry level financial advisor in one globally covering all the three different aspects all areas namely conventional, Islamic banking and of Risk in the financial services sector. In the post Insurance sectors. Under the guidance of Prof. crisis era, focus on Risk Management is considered Sudhakar Raju, the programme development has to be essential for the creation of a sound and been commissioned to PWC, Ltd Bahrain. As per robust financial system against random shocks— agreement with PWC, the programme will be ready endogenous or exogenous. for delivery in September 2010. The CBB Risk Certification programme is the first component of a series of upcoming risk management programmes, in BIBF, of varying levels of complexity. The CBB Risk Certification programme represents the first level of the programme. The second level of the programme will be an explicit partnership between BIBF and PRMIA to offer a more advanced programme
BIBF | Annual Report 2009 35 36 BIBF | Annual Report 2009 BIBF Team
Director’s Office Faculty Centre for Accounting Yousif Faraj Garry Muriwai Waseem Mirza and IT Senior Lecturer Director Lecturer Namasiku Liandu [email protected] [email protected] [email protected] Head of Centre: Accounting MBA, Strathclyde University, UK Ebtisam A. Saad MBA in Finance and Marketing - and IT Farayi Patrick Chikwanda Executive Assistant IMS, Lahore, Pakistan; M.Com in [email protected] Lecturer [email protected] Advance Accounting - University Faculty [email protected] of New South Wales; B.Com - BCompt (Accounting Science): Human Resources University of the Punjab, Lahore, Hafiz Qaisar Raza Khan University of South Africa (UNISA) Senior Lecturer Hussain Ismail Pakistan; Member - “Association Diploma in Accountancy, Southern of Accounting Technicians” (AAT), [email protected] Africa Association of Accountants Deputy Director MCom in Accounting from Hailey Australia (SAAA), Member of the Institute [email protected] College of Commerce, University of of Chartered Accountants, Hassan Abbas Administration the Punjab, Lahore, Pakistan Zimbabwe (ICAZ) HR Officer Zahra Tabbara CMA - Certified Management [email protected] Academic and Executive Accountant, USA Mahmood Abdulla Coordinator ACMA - Associate of Cost & Lecturer BIBF Learning Centres [email protected] Management Accountants, Pakistan [email protected] BSC in Accounting University of Lameea Mohammed Syed Amir Zahid Centre for Academic Bahrain, Bahrain Administration Coordinator Senior Lecturer and Executive CPA - American Institute of [email protected] [email protected] Dr. Mohammed Al Khozai Chartered Public Accountants Parween Haji BA Corporate Secretaryship Head of Centre: Academic (AICPA), Colorado, USA Administration Coordinator University of Madras, India and Executive Nedhal Al-Faraj [email protected] ACA - The Institute of Chartered [email protected] Accountants of India Lecturer CIPA - Certified Islamic Professional [email protected] Accountant, AAOIFI, Bahrain BSDP BIBF, Bahrain NVQ in Business Administration, UK, Diploma in Business Administration, BTI, Bahrain
BIBF | Annual Report 2009 37 BIBF Team
Administration Centre for Insurance Centre for Islamic Finance Centre for Leadership and Khulood Al Thaqafi Husain Al Ajmi Mahmood Al Sheahabi Management Administration Coordinator Assistant Director, Business Head of Centre: Islamic Kadri Rizk [email protected] Development and Head of Finance Head of Centre: Leadership Centre: Insurance [email protected] and Management Centre for Banking [email protected] Faculty [email protected] Dr. Sat Paul Parashar Faculty Dr. Ahmed Assad Faculty Head of Centre: Banking Dr. Tarek Seif Mahmoud Amal A. Jabbar Al Awadhi [email protected] Senior Lecturer Senior Lecturer Consultant and Trainer Faculty [email protected] [email protected] [email protected] PhD in Maritime Transport from Completing Post Doctorate PhD BSC in Psychology with Clinical Dr. Jyothi Venkatesh Arab Academy for Science PhD in Islamic Commercial Psychology, University of Kent, UK Senior Lecturer Technology and Maritime Jurisprudence, International Islamic [email protected] Madhavi Tiwary Transport University, Malaysia PhD in Finance from the Indian Senior Lecturer ACII - Associate of Chartered MA in Islamic Economy, Yarmouk Institute of Science, Bangalore [email protected] Insurance Institute, UK University, Jordan, BA in Sharia’a MA in English Literature: Lucknow Subramanian Ravi Ali Mohasen Mutah University, Jordan University, India Senior Lecturer Lecturer Huma Sodher MA in Education: Annamalai [email protected] [email protected] Senior Lecturer University, India MA. C.A.I.I.B in Public BSC Mechanical Engineering, [email protected] Certificate in Instructional Skills: Administration from Madras University of Bahrain, Bahrain BCom (Commerce & Law): Oakland Schools, USA University, Chennai ACII - Associate of Chartered University of Karachi, Pakistan Martin Smithies Anuradha Shaw Insurance Institute, UK LLM (Law): University of Karachi, Senior Lecturer Lecturer Manal Mohammed Pakistan, ACA - Institute of [email protected] [email protected] Mashkoor Chartered Accountants of Pakistan, MA in Applied Linguistics and MA in Economics (Distinction) Lecturer CIPA - Certified Islamic Professional Language Teaching from the Bangalore University, [email protected] Accountant, AAOIFI, Bahrain University of York Karnataka, India BSC Business Information System, Nedal El-Ghattis Muneer Mohammed Saeed Chithra Suresh Bahrain University ACII - Associate of Senior Lecturer Senior Lecturer Lecturer Chartered Insurance Institute, UK [email protected] [email protected] [email protected] Yousif Darwish MBA Royal Melbourne Institute of Completing PhD MPhil in Applied Economics, Lecturer Technology (RMIT), Australia MBA University of Durham, Jawaharlal Nehru University, India [email protected] Diploma in Neuro-Languastic UK BSC Beirut Arab University, MA in Economics, Calicut University, BSC Chemical Engineering, Programming from INLPTA, UK Lebanon, P.G. Dip. in Marketing: India, Certified Trade Finance University of Bahrain, Bahrain CIPA - Certified Islamic Professional Chartered Institute of Marketing, Specialist, Indian Institute of Bankers ACII - Associate of Chartered Accountant, AAOIFI, Bahrain, UK, Chartered Marketer Professional Diploma for Trainers and Insurance Institute, UK CSAA - Certified Sharia’a Adviser Tutors, Cambridge University, UK and Auditor, AAOIFI, Bahrain Dr. Vijayalaxmi Moovala Administration Senior Lecturer Inuwa G. Affa Alfatih Gessan Pananjung [email protected] Lecturer Mahesh Prabhu Aryasantana PhD in Business Management: [email protected] Business Development Lecturer Osmania University, India ACAMS, Miami FL, USA; PGD in Manager [email protected] MBA: Nagarjuna University, India Financial Management at A.T.B. [email protected] MBA in Islamic Finance: MBA, Washington International P.G. Dip. in Personnel University, Bauchi Nigeria International Islamic University of University, USA, P.G. Dip. in Management: Indian Institute of Administration Malaysia, Kuala Lumpur, Malaysia Information Technology, Manipal Management Studies, India BEng Bogor Agricultural University, Khulood Al Thaqafi University, India, BBM (HR), B. Com (Hons): Osmania Bogor, Indonesia Administration Coordinator Mangalore University, India University, India, Certified Master [email protected] Administration Trainer in Neuro-Linguistic Wafa Al Durazi Marwa Ahmed Psychology – National Federation Administrative Assistant of Neuro-Linguistic Psychology, [email protected] Administrative Assistant [email protected] USA, Accredited Facet 5 User: Facet 5, N.L. Bukley, Australia Sumayya Zainalabedin Administrative Coordinator [email protected]
38 BIBF | Annual Report 2009 BIBF Team
Dr. Vivek Kumar Marketing and Bader Al Ameer Senior Lecturer Communications Information Desk Attendant [email protected] Department [email protected] PhD in Management from the Chris Carston Nasser Al Khayat University of Indore, India Marketing and Information Desk Attendant MBA (HR) from University of Communications Manager [email protected] Indore, India [email protected] Sultan Al Rumaihi Bader Abbas Al Nasser Amal Al A’ali Information Desk Attendant Lecturer Marketing Officer - Youth [email protected] [email protected] and Digital Allan Mauleon BSC Management, University of [email protected] Bahrain IT Support Eman Al Khayat [email protected] Philip Mukhwana Marketing Officer - PR Lecturer Abdul Mutaleb Abdulla Publications & Internal Branding Receptionist [email protected] [email protected] BSC (Hons), (Physics and [email protected] Mathematics): Makerere University, Gerry Palad George Epen Kampala, Uganda, Diploma in Web Master/Graphic Designer General Service’s Education: Makerere University, [email protected] [email protected] Kampala, Uganda, Business Operations Department Hussain Askari application of ICT (Post Grad Diploma): Office Assistant University of Cambridge, Advanced Khalid Al Medfaie [email protected] Diploma: Strategic Development Operations Manager Kakkarattu Kunnummal of Human Resources: Institute of [email protected] Rajan Commercial Management (ICM), UK, Nawal Saif General Service’s Professional Development Scheme, Registrar [email protected] Chartered Institute of Personnel and [email protected] Development (CIPD) UK Mohammed AbdulKhaliq Administration Driver Administration Hassan Khamis [email protected] Sameera Al Khal Supervisor, General Service’s Administration Coordinator [email protected] Quality Assurance [email protected] Afnan Ali Sahwan Department Sana Sarwani Administrative Assistant Dr. Subhadara Ganguli Administration Coordinator [email protected] Head: Quality Assurance [email protected] Fadheela Al Sharaf [email protected] Administrative Assistant BIBF Business Departments [email protected] Visiting Professor Sudhakar Raju Finance Department Farooq AbdulQader Administrative Assistant Visiting Professor Ali Abdulla Zubari [email protected] [email protected] Finance Manager MA Economics University of [email protected] Muqtada Al Oraibi Toldeo, Ohio, USA Administrative Assistant Administration [email protected] [email protected] PhD Economics & Finance, Christine S. Al Arayedh Nasreen Aqeel Northern Illinois University, USA Finance Officer Administrative Assistant MPA Public Administration, [email protected] [email protected] Harvard University, USA Redha Mohammed Sarah Saade FRM, (GARP) Finance Officer Assistant Registrar [email protected] [email protected] Mahdi Abdul Nabi Ahmed Al Alawi Accounts Assistant Information Desk Attendant [email protected] [email protected]
BIBF | Annual Report 2009 39 BIBF Guest Speakers / Lecturers 2009
Centre for Academic and Centre for Accounting and IT Centre for Islamic Finance Executive Eliot Stenzel: Consulting A Sattar Abu Ghuda: Al Hameed Salman: Delmon Baraka Group Bentley College Management Consulting Ahmad Al Saad: Yarmouk Dr. Bill Starner Isa Al-Mutawaj: Central Bank University Dr. Bill VanderClock of Bahrain Ahmad Nassar: CIBAFI Dr. Bob McNulty Jamal Al Mutawa: GOSI Arif Khalifa: Kuwait Finance Dr. Sue Newell Kishore Dash: Gulf Finance House House Chris O’Malley: ICMA Centre – Business English Programme Lakshmi Lakshman: Private University of Reading A.Aziz Al Qassimi: College of Consultant Eman Bu Rashid: Keynotes Health & Sciences - Retire Pol Robert Tansens: Consulting Consultants Gopika Beri: Gulf Air Gohar Bilal: BNP Paribas CPA / CMA Naeema Al A’ali: Ministry of Hussain A. Haq: Al Salam Bank Education Abdulla Al-Madhoob: Private Jaafar Al Omran: Al Baraka Reem Jaberi: Gulf Polytechnic Consultant Banking Group Shireen Heidari: College of Ahmed Al-Sulaiman: STC Mahmoud A.Bari: Qatar Health & Sciences Dr. Gagan Kukreja: Al-Ahlia National Bank Siddika Sabooni: Ministry of University Mohammed Belgami: Bahrain Education Hameed Salman: Delmon Islamic Bank Management Consulting Nathif Adam: First Community DePaul University Isa Al-Motawaj: Central Bank Bank Taha Al Tayeb: Badr Al Islami Dr. Adam Gehr of Bahrain Dr. Animesh Ghoshal Lakshmi Lakshman: Private Consultant Centre for Leadership and Dr. Bill Jedlicka Management Dr. Bob Greene Kishore Dash: Gulf Finance Dr. Bruce Newman House Managing Productivity, Dr. Daniel Deli Manal Al-Sarraf: Batelco Quality & Processes within Dr. Elijah Brewer Mohammed Al-Mulla: Gulf Air Banks & Insurance Co. Dr. Gilles Reinhardt Rushdi Kikhia: Deloitte & Alan Speed: Management Dr. Helen Lavan Touche Improvements Ltd Dr. Humayon Dar Samar Agaiby: Housing Bank The Leadership Challenge Dr. Jaejoon Woo Shadi Zahran: Ahli United Bank Tom Flatau: Teamworking Venkat Maravan: Gulf 1 Bank Dr. Jin Choi Facet 5 Dr. John Ahern David Davenport: Gulf World Dr. Karim Pakravan Centre for Banking Institute Dr. Keith Howe Jose Paul Martin: Venture Parttime Lecturers / Dr. Kevin Stevens Capital Bank Consultants for various Dr. Marty Martin Nader Al Soufi:C rediMax Public Offerings Dr. Mike Miller Saleh Hussain: Saleh Hussain Abdulla Al Moosa: Private Dr. Moh Omar Farooq Consultancy Consultant Dr. Nabil Ibrahim Savitha Ragjavan: Geetu Kalani: Private Dr. Ramon Codina PriceWaterHouseCooper Consultant Dr. Sanjay Deshmukh Surendra Barsode: Aptivva Glenn Van Kessel: Private Consulting Solutions (P) Ltd University of Wales Consultant Greg White: Private Consultant Ali Abbas: BBK Centre for Insurance Hind Idris: Private Consultant Dr. Batool Asiri: University of Ayman Al Ajami: AIG Enaya Lakshmi Lakshman: Private Bahrain Dr. Farid Al Sahn: University of Consultant Bob Thaker: National Trading Bahrain Omneya Badr: Private House Jaffer Jahromi: Iran Insurance Consultant Dr. Mohammed Al Wosabi: Jaffer Mazaal: CII Omran Khayami: Private University of Bahrain Mohammed Radhi: AIG Enaya Consultant Sadiya S. Hashmi Nader Mandeel: CBB Vincent Koyle: Private Sadiq Al Aali: AXA Insurance Consultant Yosr Fareed: Private Consultant
40 BIBF | Annual Report 2009 Participating Organisations Member Organisations comprise financial services institutions in Bahrain which financially support and actively use the services provided by BIBF.
Financial Sector Deutsche Bank NCB Capital AXA Insurance (Gulf) BSC Abu Dhabi Investment House Dexia Private Bank NEXUS Financial Services AXIS International Addax Investment Bank Elaf Bank Nomura Investment Banking Bahrain Kuwait Insurance Co Ahli United Bank Eskan Bank (ME) Bahrain National Holding Co Al Khabeer International Bank European Islamic Investment Oasis Capital Bank Bahrain National Insurance Allied Banking Corporation Bank Reef Bank Company Alpine Wealth Management Family Bank Sakana Holistic Housing Bahrain National Life Insurance Al Salam Bank Finansbank A.S. Securities & Investment Co. CHARTIS - Takaful Enaya (AIG) Alubaf Arab International Bank First Energy Bank Seera Investment Bank Cunningham Lindsey Middle East Al Yousuf Exchangers First Investment Bank Shamil Bank of Bahrain Fakhro Insurance Services Albaraka Banking Group First Leasing Bank Standard Chartered Bank Future Bank State Bank of India Gulf Union Insurance & Projects Allianz Global Investors Management Holding Co Global Banking Corporation T. Vakiflar Bankasi TAO Allianz MENA Holding Co. Gulf Union Insurance & AMEX (Middle East) Gulf Custody Company T. Halk Bankasi A.S. Reinsurance Co. Arab Bank PLC Gulf Finance House Tadhamon Capital ICICI Prudential Life Insurance Arab Banking Corporation Gulf International Bank TAIB Bank Co Ltd Arab Financial Services Habib Bank Ltd Tharawat Investment House Intershield WLL Arab Investment Company HDFC Bank The Benefit Company Iran Insurance Co. Arcapita Bank HSBC Bank Middle East Ltd The Housing Bank for Trade Labuan Reinsurance Ltd Askari Bank Ltd HSBC Bank Middle East Ltd - and Finance Life Insurance Corporation Wholesale Bank (International) Awal Bank The International Banking ICICI Bank Ltd Corporation Medgulf-Bahrain Bahrain Credit ING Bank A.S. The Islamic Bank of Asia Ltd New India Assurance Co Ltd Bahrain Development Bank INSTRATA Capital BSC The Saudi National Commercial Oryx Insurance Services Bahrain Express Exchange International Investment Bank Bank Protection Insurance Services Bahrain International Bank Investcorp Bank TSKB (Industrial Development Royal & Sun Alliance Ins. ME Bahrain Islamic Bank Bank of Turkey) Investment DarBank Royal & Sun Alliance Ins. Plc Bahrain Stock Exchange Turk Ekonomi Bankasi Investors Bank Saudi National Insurance (SNIC) Bahraini Saudi Bank Turkiye IS Bankasi A.S. Ithmaar Bank Solidarity Family Takaful Bank Al Habib Ltd Unicorn Investment Bank BSC JPMorgan Chase Bank Solidarity General Takaful Bank AlFalah Limited United Bank Ltd Khaleeji Commercial Bank Solidarity Group Holding Bank Muscat International United Gulf Bank Korea Exchange Bank Takaful International Co. Bank of Bahrain & Kuwait UBS AG Kuwait Finance House T’azur Bank of Tokyo - Mitsubishi Ltd Venture Capital Bank Kuwait Turkish Participation Trade Union Insurance Co BMB Investment Bank Wealth Management Group Bank Trust International Insurance Co BMI Bank Woori Bank LGT Bank In Liechtenstein Ltd United Insurance Co. BNP Paribas Yapi Ve Kredi Bankasi Liquidity Management Centre Willis Faber Calyon Bank (Credit Agricole) Mashreq Bank Insurance Companies Zurich Insurance Services (ME) Capinnova Investment Bank Maybank ACE Insurance Zurich International Life Capital Management House MCB Bank Ltd ACR ReTakaful MEA BSC Insurance Co CAPIVEST Merrill Lynch International Bank AF Willis Faber Central Bank of Bahrain Ltd AIG - New Hampshire Insurance Citibank N.A. Mizuho Corporate Bank Ltd Al Ahlia Insurance Company CrediMax National Bank of Abu Dhabi Allianz (Takaful) Bahrain Credit Libanais National Bank of Bahrain American Life Insurance (ALICO) Daiwa Securities SMBC National Bank of Kuwait Arab Insurance Group (ARIG) Europe Ltd National Bank of Pakistan Arabia Insurance Co. Denizbank National Finance House
BIBF | Annual Report 2009 41 Participating Organisations Non-member Organisations comprise institutions other than Members who use the services provided by BIBF.
Azerbaijan Council of Representatives MedNet Bahrain WLL United Arab Construction Caspian International Investment Crown Prince Court Midal Cables Ltd Universal Rolling Company DHL Aviation Service Ministry of Education Y. K. Al Moayyed PASHA Bank Diyar Al Muharraq Ministry of Electricity & Water Yokogawa Middle East Bahrain Durrat Al Bahrain Ministry of Finance Zain Group AAOIFI Durrat Resort Management Ministry of Health Zayani Motors Edamah (Bahrain Real Estate Ministry of Industry & Commerce Ahmed Mansoor Al A’ali Iran Investment Co.) Ministry of Labour Al Faraj Trading Bank Tejarat Electricity & Water Authority Ministry of Municipality Al Hassanain Company Bank Sepah ESB International Al Kooheiji Electrical Contractors Ministry of Social Development Esterad Investment Jordan Al Nabaa Commercial Services Ministry of Work Euro Motors WLL Jordan Insurance Regulatory Al Rashid Group National Audit Court Expressions Middle East Insurance Company Al Taweel Group National Motor Company General Organization for Youth Ali Turk Establishment National Occupational Safety & Kuwait GFH Support Services Health Centre Aluminium Bahrain (ALBA) Boubyan Bank Global Intellectual Plus Nonoo Exchange Co SP APICORP Central Bank of Kuwait Global Payment Services Northern Municipality APM Terminals Bahrain BKIC GOSI Ohad Trusts Corporation Arabian Gulf Associates Gulf Insurance Company GPIC Omrania & Associates Aramex International United Insurance Bureau Gulf Diabetes Specialist Center Oriental Press ASRY Warba Insurance Company Gulf Electronic Management Prime Minister Court Atkins Al-Sayer Est. System PTTEP Bahrain Company Limited Awal Express Kuwait Investment Authority Gulf Industrial Investment Qays H. Zubi Office Awal Gulf Manufacture Company Ramsis Engineering Libya Bahrain Institute of Public H. Q. Bahrain Defence Force Mazaya Centre Administration Remza Investment Company HAJ Gulf Bahrain Mumtalakat Holding Robeco-WPG Oman Haji Hassan Group Company Royal Charity Organisation Bank Sohar Hannover Re Takaful Bahrain Polytechnic Royal Court Oman Arab Bank Hempel Paint Bahrain Precast Concrete Royal Family Council Oman Insurance Authority Company HRD Fund Sabre Public Authority For Social Bahrain Royal Flight IFP Middle East Consulting Safe Hand Health System Insurance BANAGAS INOVEST Holding Qatar BAPCO Intercol Sayyar Trading Agencies Al Mal Bank Barwa Bahrain International Turnkey System Sh. Isa Bin Mohammed Law Bahrain Bank of Tokyo-Mitsubishi UFJ BATELCO Office Ithmaar Bank Barwa Bank BBWA Shaheen Group Kooheji Contractors BNP Paribas BDF Medical Services Shura Council - Bahrain KPMG Fakhro Commercial Bank of Qatar Bemco International Bahrain Specific Council for Vocational Land Gulf Insurance Training in Construction Masraf Al Rayan Bhatia Company LMRA Sunni Waqf Qatar Islamic Bank BMMI M.H. Al Mahroos BSC(C) TAIB Bank E.C. Doha Insurance Company Chevron Maalem Holding Tamkeen Conxion Logistics & Heavy CIBA Speciality Chemicals Equipments MAF Investments Bahrain Tender Board Civil Aviation Affairs Marina West The Family Office Company Coldwell Banker MAZA The Islamic Association Constitutional Court
42 BIBF | Annual Report 2009 Participating Organisations Non-member Organisations comprise institutions other than Members who use the services provided by BIBF.
Saudi Arabia United Arab Emirates A. A. Turki Corporation Abu Dhabi Islamic Bank Al Anood Investments Arab Trade Financing Programme Al Rajhi Insurance Company Bank of Tokyo-Mitsubishi UFJ Al Rushaid Petroleum Investment BNP Paribas Company ALICO Alinma Bank Dubai Islamic Insurance & Assets Financial House Reinsurance Company AXA Insurance Emirates Insurance Company Bank Albilad Tokio Marine & Nichido Fire Banque Saudi Fransi Insurance Co. LTD EniRepSa Gas Limited Abu Dhabi Investment Council Fransi Tadawul LLC Arqaam Capital Gulf Co-operative Insurance Health Authority of Abu Dhabi Company Royal Centre Islamic Development Bank United Kingdom Alturki Group Bank of Tokyo-Mitsubishi UFJ Malath Cooperative Insurance & Reinsurance Company Yemen Marsh United Insurance Company MEDGULF Yemen Islamic Insurance Company NCB Pan Gulf Holding Payong Rawabi Holding Company Riyadh Bank Sabb Takaful SABIC-Saudi Arabia Sahm Al Nour Project SAMA Saudi Aramco Saudi British Bank Saudi Electricity Company Saudi Hollandi Bank Saudi National Insurance Saudi Re. Saudi Readymix Concrete Company Saudi Telecom SaudiPanGulf Trading Tawuniya Unicorn Capital Saudi Wahah Electric Supply Company
BIBF | Annual Report 2009 43 Glossary
ACAMS: Association of Certified Anti- Money CFA: Chartered Financial Analyst Laundering Specialists CII: Chartered Insurance Institute ACCA: Association of Chartered Certified Accountants CIA: Certified Internal Auditor ACI: International Compliance Association CIMA: Chartered Institute of Management ARM: Associateship in Risk Management Accountants Assessment Centre: Is a Centre designed to aid in CIPD: Chartered Institute of Personnel and placement of new staff or assessment of existing Development potential. Testing includes IT / Microsoft Level CMA: Certified Management Accountant Determination; English Language Placement and Occupational Ability Tests CMI: Chartered Management Institute Bahrain Institute of Banking and Finance (BIBF): Cohorts: a group of people who are enrolled in the one of the leading providers of Training, Education same programme at the same time and Professional Development programmes to the financial industry in the Gulf and the Middle East. CPA: Certified Public Accountant BEP: Business English programme CPP: Certificate in Personnel Practice BSDP: Banking Studies Diploma Programme CTP: Certificate in Training Practice CBB Regulation: Central Bank of Bahrain rules/laws Curriculum: The prescribed classes or course work needed to complete a programme of study leading to Centre for Academic and Executive: Specific a degree or certificate department focused on Masters (De Paul) and Undergraduate (Wales) programmes and includes Customised Programmes: see Special Offerings specific executive development offerings (incl. Darden School of Business: US based institution that Leadership Programme) partners with BIBF in the Leadership Programme Centre for Accounting and IT: Specific department DePaul University: DePaul University is a private focused on Accounting (CPA and CMA in conjunction institution of higher education and research in with Morgan) and other specialised areas and Chicago, Illinois, USA. partnerships including IIA, ICAEW and ACCA. The department also develops multiple programmes in IT Executive Education: an education enabling specifically Office applications training executives to undergo transition from a functional to a general management role Centre for Banking: Specific department focused on Banking specialisation and partnerships / qualifications External Offering: Courses facilitated at BIBF by local including ACAMS, ACI, AML, ICA and PRM. The and International Private Consultants with prominent department also leads the BSDP programme with market experience pathways to the University of Newcastle Financial Services Sector: The financial services Centre for Insurance: Specific department focused sector encompasses a broad range of organisations on Insurance specialisation with the key partnership that deal with the management of money. Among being CII. It delivers the only fully Arabic Insurance these organisations are banks, credit card companies, qualification (PIC) insurance companies, stock brokerages, investment funds and some government sponsored enterprises. Centre for Islamic Finance: Specific department (eg, central banks and insurance supervisory focused on Islamic Finance specialisation. authorities Centre for Leadership and Management: Specific GRCDP: Graduate recruitment and career department focused on Leadership and Management development programme and other specialised areas and partnerships including CIPD (CPP and CPT) and CIMA. The department also IBDF: Islamic Banking Diploma in Finance runs the stand-alone Assessment Centre. Guest Speakers/Lecturers: Part time instructors and lecturers
44 BIBF | Annual Report 2009 ICA: International Compliance Association Professional Offering: BIBF offers a wide range of banking, finance, insurance, management, marketing, ICAEW: Institute of Chartered Accountants of Academic and Executive Programmes, English and England and Wales information technology courses to assist participants IGIE: Global Insurance Education in their professional development IIA: Institute of Internal Auditors Professional Qualification: is a designation earned by a person to assure qualification to perform a job or Insurance Association of Insurance Supervisors task (IAIS): an international organisation represents insurance regulators and supervisors of some 190 Programmes: a programme designed or offered jurisdictions in nearly 140 countries by BIBF for training in specific skills or knowledge including Training, Development and Professional Internationally Accredited: the course or certificate Courses which is granted credit or recognition from institute, body or university that maintains suitable international Public Offerings: Courses designed to meet the standards financial sectors training needs and they are open to individuals and groups. These course are offered free LP: The Leadership Programme is the revised and of charge for levy payers successor to the previous Gulf Executive Development Programme Public Sector: all enterprises and activities owned and funded by the government Learning Centres: a specialised division of a BIBF devoted to specific filed of training (eg: BIBF learning Special Offerings: Customised, company specific centre.) programmes designed to meet specific organisational needs and accommodate operating hours Members: comprise financial services institutions in Bahrain which financially support and actively use the Specific Council: Board members of the Council services provided by BIBF for Vocational Training (Banking Sector) which was established upon Amiri Decree No.20 of 1975 Morgan International: Partner. Co-collaborators in providing CPA and CMA qualifications Takaful Insurance: an alternative to conventional insurance observing the rules and regulations of Non-members: comprise institutions other than Islamic law (Sharia’a) Members who use the services provided by the BIBF TAMKEEN: is a semi-autonomous yet independent Participant Hours: Total participants hours attended authority which formulates strategic and operational by all BIBF programme participants during the year. plans to enhance the overall prosperity of Bahrain by Participant hours are calculated by multiplying the investing in Bahraini employability, job creation, and total number of participants into numbers of hours social support attended by them (No. of people x No. of hours) University of Cambridge: Prestigious UK based Participating Organisations: organisations that University offering the Cambridge Diploma through participated at BIBF the Centre for Leadership and Management PDFSM: is a qualification that provides the foundation University of Wales: Prestigious UK (Wales) based knowledge and skills in financial services management university offering its Validated Diploma through the PRIMA: Professional Risk Manager’s Association Centre for Academic and Executive Private Sector: Organisations and entities that are Waqf Fund: A Bahrain-based specialist fund which not part of any governmental structure. Owned by supports education and training in Islamic finance shareholders or individuals PRM: Professional Risk Management is the global standard for the world’s top financial risk professionals
BIBF | Annual Report 2009 45 Independent Auditors’ Report to the SpecificC ouncil for Vocational Training (Banking Sector)
Report on the financial Auditor’s responsibility We believe that the audit evidence statements we have obtained is sufficient and Our responsibility is to express appropriate to provide a basis for We have audited the an opinion on these financial our audit opinion. accompanying financial statements statements based on our audit. of Bahrain Institute of Banking and We conducted our audit in Opinion Finance – BIBF (the Institute) which accordance with International In our opinion, the accompanying comprise the statement of financial Standards on Auditing. Those financial statements present position as at 31 December standards require that we comply fairly, in all material respects, the 2009 and the statements of with ethical requirements and plan financial position of the Institute comprehensive income, changes and perform the audit to obtain as at 31 December 2009, and its in fund balance and cash flows reasonable assurance whether the financial performance and its cash for the year then ended and a financial statements are free from flows for the year then ended summary of significant accounting material misstatement. in accordance with International policies and other explanatory An audit involves performing Financial Reporting Standards. notes. procedures to obtain audit Management’s responsibility for evidence about the amounts the financial statements and disclosures in the financial statements. The procedures Management is responsible for the selected depend on the preparation and fair presentation auditor’s judgement, including of these financial statements in 16 March 2010 the assessment of the risks of accordance with International Manama, Kingdom of Bahrain material misstatement of the Financial Reporting Standards. This financial statements, whether responsibility includes: designing, due to fraud or error. In making implementing and maintaining those risk assessments, the internal control relevant to the auditor considers internal control preparation and fair presentation relevant to the entity’s preparation of financial statements that are and fair presentation of the free from material misstatement, financial statements in order to whether due to fraud or error; design audit procedures that are selecting and applying appropriate appropriate in the circumstances, accounting policies; and making but not for the purpose of accounting estimates that are expressing an opinion on the reasonable in the circumstances. effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
46 BIBF | Annual Report 2009 Shaping tomorrow’s financial leaders today BIBF Financial Statements 2009 Statement of financial position (All amounts expressed in Bahrain Dinars unless otherwise stated)
As at 31 December Note 2009 2008 Assets Non-current assets Property, plant and equipment 5 665,685 716,388
Current assets Receivables, advances and prepayments 6 861,654 873,426 Cash and cash equivalents 7 8,219,207 6,789,209 9,080,861 7,662,635 Total assets 9,746,546 8,379,023
Fund balance and liabilities Fund balance Accumulated surplus 6,396,466 5,183,929 Special reserve 8 1,893,119 1,856,187 8,289,585 7,040,116
Non-current liabilities Employees’ terminal benefits 9 71,246 42,609
Current liabilities Accounts payable and accruals 10 1,385,715 1,296,298
Total fund balance and liabilities 9,746,546 8,379,023
The financial statements were approved by the Specific Council for Vocational Training (Banking Sector) on 16 March 2010 and signed on its behalf by:
Rasheed Al Maraj Garry Muriwai Chairman Director
The notes on pages 52 to 62 form an integral part of these financial statements.
48 BIBF | Annual Report 2009 Statement of comprehensive income (All amounts expressed in Bahrain Dinars unless otherwise stated)
Year ended 31 December Note 2009 2008 Revenue Tuition fees 4,147,768 4,404,649 Less: Direct tuition costs (1,976,570) (2,022,276) Net tuition fees 2,171,198 2,382,373
Levy 2,000,909 1,637,632 Contribution 15,000 15,000 Other 15,046 19,258 4,202,153 4,054,263 Expenses Staff cost 11 (2,633,336) (2,329,849) General and administrative expenses 12 (464,101) (496,105) Depreciation 5 (144,649) (139,716) (3,242,086) (2,965,670)
Operating profit for the year 960,067 1,088,593
Interest income 289,402 181,580
Profit for the year 1,249,469 1,270,173
Other comprehensive income - -
Total comprehensive income for the year 1,249,469 1,270,173
The financial statements were approved by the Specific Council for Vocational Training (Banking Sector) on 16 March 2010 and signed on its behalf by:
Rasheed Al Maraj Garry Muriwai Chairman Director
The notes on pages 52 to 62 form an integral part of these financial statements.
BIBF | Annual Report 2009 49 Statement of changes in fund balance (All amounts expressed in Bahrain Dinars unless otherwise stated)
Accumulated Special Note surplus reserve Total
Balance at 1 January 2008 3,998,867 1,771,076 5,769,943 Total comprehensive income for the year 1,270,173 - 1,270,173 Transfer from accumulated surplus 8 (85,111) 85,111 -
Balance at 31 December 2008 5,183,929 1,856,187 7,040,116
Balance at 1 January 2009 5,183,929 1,856,187 7,040,116 Total comprehensive income for the year 1,249,469 - 1,249,469 Transfer from accumulated surplus 8 (36,932) 36,932 -
Balance at 31 December 2009 6,396,466 1,893,119 8,289,585
The notes on pages 52 to 62 form an integral part of these financial statements.
50 BIBF | Annual Report 2009 Statement of cash flows (All amounts expressed in Bahrain Dinars unless otherwise stated)
Year ended at 31 December 2009 2008 Cash flows from operating activities Profit for the year 1,249,469 1,270,173
Adjustments for: Depreciation 144,649 139,716 Interest income (289,402) (181,580) Provision for doubtful debts - 48,837
Changes in operating assets and liabilities: Receivables, advances and prepayments 11,772 (243,128) Accounts payable and accruals 89,417 100,716 Employees terminal benefits 28,637 33,235 Net cash (used in)/provided by operating activities 1,234,542 1,167,969
Cash flows from investing activities Purchase of property, plant and equipment (93,946) (343,919) Interest income received 289,402 181,580 Proceeds from held-to-maturity investment - 667,290 Net cash provided by investing activities 195,456 504,951
Net increase in cash and cash equivalents 1,429,998 1,672,920
Cash and cash equivalents, beginning of the year 6,789,209 5,116,289
Cash and cash equivalents, end of the year 8,219,207 6,789,209
The notes on pages 52 to 62 form an integral part of these financial statements.
BIBF | Annual Report 2009 51 Notes to the financial statements for the year ended 31 December 2009 (All amounts expressed in Bahrain Dinars unless otherwise stated)
1 General information The Bahrain Institute of Banking and Finance (the “Institute”) was formed in the Kingdom of Bahrain by the approval of the Specific Council for Vocational Training (Banking Sector). The Institute is an unregistered non-profit entity and commenced its first training year on 1 September 1990. The objective and principal activity of the Institute is to provide training to employees working in the financial sector of the Kingdom of Bahrain. Major sources of finance of the Institute consist of: a. Tuition fees in respect of various courses conducted by the Institute. b. Mandatory levy equal to 1% of staff base payroll cost of all financial institutions licensed by the Central Bank of Bahrain. c. An annual contribution of BD 15,000 is received from the Central Bank of Bahrain (the “CBB”). The utilisation of the contribution is at the discretion of the Institute.
2 Summary of significant accounting policies The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Basis of preparation The financial statements of the Institute have been prepared in accordance with International Financial Reporting Standards (IFRS). The financial statements have been prepared under the historical cost convention. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Institute’s accounting policies. Areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are included in Note 4. Standard amendments and interpretations to published standards effective from 1 January 2009. The following amendment and interpretations to existing standards that have been published are effective for the Institute’s accounting period commencing 1 January 2009: IAS 1 (revised), ‘Presentation of financial statements’ (effective from 1 January 2009). The revised standard prohibits the presentation of items of income and expenses (that is, ‘non-owner changes in equity‘) in the statement of changes in equity, requiring ‘non-owner changes in equity’ to be presented separately from owner changes in equity. All non-owner changes in equity are required to be shown in a performance statement, but entities can choose whether to present one performance statement (the statement of comprehensive income) or two statements (the income statement and statement of comprehensive income). Where entities restate or reclassify comparative information, they will be required to present a restated statement of financial position as at the beginning of the comparative period in addition to the current requirement to present the statement of financial position at the end of the current period and comparative period. The Institute has applied IAS 1 (revised) from 1 January 2009 and has used the statement of comprehensive income as performance statement. IAS 39 (amendment), ‘Financial instruments: Recognition and measurement’. The amendment was part of the IASB’s annual improvements project published in May 2008. The definition of financial asset or financial liability at fair value through profit or loss as it relates to items that are held for trading was amended. This clarifies that a financial asset or liability that is part of a portfolio of financial instruments managed together with evidence of an actual recent pattern of short term profit taking is included in such a portfolio on initial recognition. Adoption did not have a significant impact on the Institute’s financial statements.
52 BIBF | Annual Report 2009 2 Summary of significant accounting policies (continued) Basis of preparation (continued) Standard amendments and interpretations to published standards effective from 1 January 2009 (continued) IFRS 7 (amendment), ‘Financial instruments – Disclosures’ – effective 1 January 2009). The amendment requires enhanced disclosures about fair value measurement and liquidity risk. In particular, the amendment requires disclosures of fair value measurements by level of a fair value measurement hierarchy. The Institute does not have financial instruments measured at fair value and accordingly, the adoption of this revised standard did not have any impact on the Institute’s financial statements. IAS 32 (amendment), ‘Financial instruments: Presentation’, and IAS 1 (amendment), ‘Presentation of financial statements – Puttable financial instruments and obligations arising on liquidation’. The amended standards require entities to classify puttable financial instruments, or components of instruments that impose on the entity an obligation to deliver to another party a pro rata share of the net assets of the entity only on liquidation as equity, provided the financial instruments have particular features and meet specific conditions, including that all financial instruments in the class of instruments that is subordinate to all other instruments have identical features. The adoption of these amendments did not have any impact on the Institute’s financial position. Standards, amendments and interpretations affective on 1 January 2009 but not relevant for the Institute’s operations • IAS 23 (amendment), ‘Borrowing costs’; • IAS 39 and IFRIC 9 (amendments), ‘Embedded derivatives’ (effective for all period ending on or after 30 June 2009); • IAS 39 and IFRS 7 (amendments), ‘Reclassification of financial assets’; • IFRS 1 (amendment), ‘First-time-adoption of IFRS’, and IAS 27, ‘Consolidated and separate financial statements’; • IFRS 2 (amendment), ‘Share-based payment’; • IFRS 8, ‘Operating segments’; and • IFRIC 15, ‘Agreements for construction of real estates’. Standards, amendments and interpretations to published standards that are not yet effective and not relevant for the Institute’s operations The following interpretations are mandatory for the Institute’s accounting periods commencing on or after 1 July 2009 or later periods but are not relevant for the Institute’s operations: • IAS 27 (Revised), ‘Consolidated and separate financial statements’, (effective from 1 July 2009); • IAS 39 (amendment), ‘Financial instruments; Recognition and measurement’ (effective from 1 July 2009); • IFRS 1 (amendments), ‘Group cash-settled share-based payment transactions’ (effective from 1 January 2010); • IFRS 3 (revised), ‘Business combinations’ (effective from 1 July 2009); • IFRIC 17, ‘Distributions of non-cash assets to owners’ (effective from 1 July 2009); and • IFRIC 18, ‘Transfers of assets from customers’ (effective from 1 July 2009).
BIBF | Annual Report 2009 53 Notes to the financial statements (continued) for the year ended 31 December 2009 (All amounts expressed in Bahrain Dinars unless otherwise stated)
2 Summary of significant accounting policies (continued) Basis of preparation (continued) Standards, amendments and interpretations to published standards that are not yet effective and not relevant for the Institute’s operations (continued) ‘Improvements to IFRS’ were issued in May 2008 and April 2009 respectively and contain numerous amendments to IFRS, which the IASB considers non-urgent but necessary. ‘Improvements to IFRS’ comprise amendments that result in accounting changes for presentation, recognition or measurement purposes as well as terminology or editorial amendments related to a variety of individual standards. Most of the amendments are effective for annual periods beginning on or after 1 January 2009 and 1 January 2010, respectively, with earlier application permitted. No material changes to accounting policies are expected as a result of these amendments. Foreign currency transactions (a) Functional and presentation currency Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The financial statements are prepared in Bahraini Dinars (BHD), which is the functional currency of the Institute, and is also the currency in which the financial statements are presented. (b) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the transactions at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income. Property, plant and equipment Property, plant and equipment are stated at historical cost less accumulated depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Institute and the cost of the item can be measured reliably. Repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred. Depreciation is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives as follows: Building 20 years Furniture and fixtures 7 years Machinery and equipment 5 years Motor vehicles 5 years Training materials 3 years Computer software 3 years The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting period. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on the disposal of property, plant and equipment are determined by comparing the proceeds with the carrying amount and are recognised in the statement of comprehensive income.
54 BIBF | Annual Report 2009 2 Summary of significant accounting policies (continued) Financial assets The Institute’s financial assets consist of loans and receivables. Management determines the classification of its financial assets at initial recognition. Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the statement of financial position date. These are classified as non- current assets. The Institute’s loans and receivables comprise ‘trade and other receivables’ and cash and bank balances on the statement of financial position. Trade and other receivables Trade and other receivables represent amounts due from customers for services performed in the ordinary course of business. If collection is expected in one year or less, they are classified as current assets. If not, they are presented as noncurrent assets. Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for impairment of receivables is established when there is objective evidence that the Institute will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments are considered indicators that the receivables are impaired. The amount of provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in the statement of comprehensive income as impairment loss. When a receivable is uncollectable, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against bad debt expense in the statement of comprehensive income. Provisions Provisions are recognised when the Institute has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation. Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the statement of financial position. Employee benefits Employee benefits and entitlements to annual leave, holiday, air passage and other short-term benefits are recognised as they accrue to the employees. The Institute contributes to the pension scheme administered by the General Organisation for Social Insurance in the Kingdom of Bahrain. This is a defined contribution pension plan and the Institute’s contributions are charged to the statement of comprehensive income in the year to which they relate. In respect of this plan the Institute has a legal and constructive obligation to pay the contributions as they fall due and no obligations exist to pay the future benefits. The expatriate employees of the Institute are paid leaving indemnity in accordance with the provisions of the Bahrain Labour Law. The Institute accrues for its liability in this respect on an annual basis.
BIBF | Annual Report 2009 55 Notes to the financial statements (continued) for the year ended 31 December 2009 (All amounts expressed in Bahrain Dinars unless otherwise stated)
2 Summary of significant accounting policies (continued) Revenue recognition Revenue comprises the fair value of compensation received or receivable for the sale of services in the ordinary course of the Institute activities. The Institute recognises revenues when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and when the specific criteria have been met for each of the Institute’s activities as described below. The amount of revenue is not considered to be reliably measureable until all contingencies relating to the sale have been resolved. - Tuition income is recognised as and when the services are provided. - Contributions are recognized when the right to receive payment is established. - Levy and interest income are recognised as it accrues. - Other income is recognised when the services are provided. Fiduciary activities The Institute acts as trustees and in other fiduciary capacities that result in the holding of assets on behalf of other institutions. These assets and income arising thereon are excluded from these financial statements, as they are not assets of the Institute.
3 Financial instruments and risk management The Institute’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The Institute’s overall risk management focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Institute’s financial performance. The Institute’s aim is, therefore, to achieve an appropriate balance between risk and return and minimise potential adverse effects on its financial performance. The Institute’s risk management is based on a simplified framework with non-complex transactions to identify and analyse these risks, to set appropriate risk limits and controls, and to monitor the risks and adherence to limits by means of realisable and up-to-date information systems. Risk management is carried out by the senior management. 3.1 Market risk 3.1.1 Foreign exchange risk Foreign exchange risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Institute’s assets and liabilities are denominated primarily in Bahraini Dinars. Accordingly, the Institute is not exposed to foreign exchange risk as at 31 December 2009. 3.1.2 Interest rate risk Interest rate risk is the risk that the value of a financial instrument will fluctuate due to change in market interest rates. All short term deposits of the Institute have a maturity of less than 3 months. As such, the Institute is not exposed to interest rate risk as at 31 December 2009.
56 BIBF | Annual Report 2009 3 Financial instruments and risk management (continued) 3.2 Credit risk The Institute is exposed to credit risk, which is the risk that the counterparty will cause a financial loss to the Institute by failing to discharge an obligation. The Institute’s credit risk arises from cash and bank balances and receivables advances and prepayments. For cash and bank balances, only independently rated parties with a good credit rating are accepted. The Institute has adopted a policy of only dealing with creditworthy counterparties. The Institute’s exposure of its counterparties is continuously monitored. The Institute’s receivables are concentrated in the Kingdom of Bahrain. 3.3 Liquidity risk Liquidity risk is the risk that the Institute is unable to meet its payment obligations associated with its financial liabilities when they fall due and to replace funds when they are withdrawn. Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities. The liquidity risk management process, as carried out by senior management, includes: • Monitoring the cash flow and funding requirements on a daily basis; and • Establishing credit lines with banks and financial institutions to be drawn upon in case of need. Additionally, the Institute relies on funding from the Bentley Fund At 31 December 2009, all the financial assets and financial liabilities of the Institute are realisable within one year. 3.4 Capital management The Institute’s objective when managing its capital, which comprises Fund balance, is to maintain a strong capital base to support the development of its business. In addition, the Institute may adjust the amount of annual appropriations made from the profit for the year. Refer to Note 8 for further details. 3.5 Fair value estimation Fair value is the amount for which an asset could be exchanged, or a liability settled between knowledgeable, willing parties in an arm’s length transaction. The Institute does not fair value any financial assets or liabilities. However, in the view of the Institute’s management the fair values of assets and liabilities are not materially different from their carrying amounts.
4 Critical accounting estimates and judgements Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Institute makes estimates and judgements concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below: Impairment of trade and other receivables The impairment charge reflects estimates of losses arising from the failure or inability of the parties concerned to make the required payments. The charge is based on the ageing of the customers’ accounts, customer defaults, the customers’ credit worthiness and the historical write off experience. Changes to the estimated impairment charge may be required if the financial condition of the customers was to improve or deteriorate.
BIBF | Annual Report 2009 57 Notes to the financial statements (continued) for the year ended 31 December 2009 (All amounts expressed in Bahrain Dinars unless otherwise stated)
5 Property, plant and equipment
Machinery Furniture and Training Motor Building and fixtures equipment materials vehicles Total
Cost At 1 January 2008 1,668,274 449,431 428,993 84,976 17,000 2,648,674 Additions 67,200 60,792 125,553 56,669 33,705 343,919 At 31 December 2008 1,735,474 510,223 554,546 141,645 50,705 2,992,593
Accumulated depreciation At 1 January 2008 1,239,976 406,015 388,522 84,976 17,000 2,136,489 Charge for the year 85,111 10,861 35,540 3,148 5,056 139,716 At 31 December 2008 1,325,087 416,876 424,062 88,124 22,056 2,276,205
Net book amount At 31 December 2008 410,387 93,347 130,484 53,521 28,649 716,388
Cost At 1 January 2009 1,735,474 510,223 554,546 141,645 50,705 2,992,593 Additions 32,655 11,653 21,463 28,175 - 93,946 Disposals - - - - (17,000) (17,000) At 31 December 2009 1,768,129 521,876 576,009 169,820 33,705 3,069,539
Accumulated Depreciation At 1 January 2009 1,325,087 416,876 424,062 88,124 22,056 2,276,205 Charge for the year 36,932 19,221 56,601 25,154 6,741 144,649 Disposals - - - - (17,000) (17,000) At 31 December 2009 1,362,019 436,097 480,663 113,278 11,797 2,403,854
Net book amount At 31 December 2009 406,110 85,779 95,346 56,542 21,908 665,685 The building is built on land donated by the Prime Minister on behalf of the Government of the Kingdom of Bahrain and registered in the name of the Central Bank of Bahrain.
58 BIBF | Annual Report 2009 6 Receivables, advances and prepayments 2009 2008
Accounts receivable 765,620 852,556 Accounts receivalbe written-off (22,420) (75,596) Allowance for doubtful debts (28,375) (33,390) Net accounts receivable 714,825 743,570
Prepayments 43,107 32,825 Advances to employees 47,904 25,789 Interest receivable 55,818 71,242 861,654 873,426
As at 31 December 2009 receivables amounting to BHD 714,825 were fully performing (2008: BHD 743,570) and were all denominated in Bahraini Dinars. Movements in the provisions for doubtful debts during the year were as follows:
2009 2008
At 1 January 33,390 - Charge for the year - 48,837 Provision reversal during the year (5,015) - 28,375 48,837 Write-off during the year - (15,447) At 31 December 28,375 33,390
The other calsses within receivables, advances and prepayments do not contain impaired assets. The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivables mentioned above.
7 Cash and cash equivalents 2009 2008
Cash on hand 500 500 Bank balances 2,141,171 281,713 Bank deposits 6,077,536 6,506,996 8,219,207 6,789,209
8 Special reserve On 11 December 1994, the Specific Council for Vocational Training (Banking Sector), passed a resolution to establish a special reserve to meet future capital requirements for the purpose of major expansion or replacement of the existing facility. During 1994, the Institute made a total charge of BHD466,400 representing the accumulated depreciation on the building up to 31 December 1994. Accordingly, BHD 466,400 was transferred to the special reserve in 1994. Subsequently, each year the special reserve is increased by an amount equivalent to the depreciation on the building for that particular year.
BIBF | Annual Report 2009 59 Notes to the financial statements (continued) for the year ended 31 December 2009 (All amounts expressed in Bahrain Dinars unless otherwise stated)
9 Employees’ terminal benefits 2009 2008
At 1 January 42,609 9,374 Accruals for the year 35,927 35,180 Payments during the year (7,290) (1,945) At 31 December 71,246 42,609 In accordance with the provisions of IAS 19, management has carried out an exercise to assess the present value of its obligations at 31 December 2009 and 2008, using the projected unit credit method, in respect of employees’ end of service benefits payable in accordance with the Institute’s terms of employment. Under this method, an assessment has been made of an employee’s expected service life with the Institute and the expected basic salary at the date of leaving the service. Management has assumed average increment costs of 5%. The expected liability at the date of leaving the service has been discounted to its net present value using a discount rate of 5% (2008: 5%). The costs associated with contributions made by the Institute in relation to defined contribution pension scheme amounted to BD 85,436 (2008: 77,634). In relation to this plan, the Company has a legal and constructive obligation to pay the contributions as they fall due and no obligations exist to pay the future benefits.
10 Accounts payable and accruals 2009 2008
Accounts payable 993,880 1,006,014 Staff saving scheme 350,683 251,559 Esterad-BIBF fund 32,184 30,984 Other accruals 8,968 885 Staff General Claim - 6,856 1,385,715 1,296,298 Staff saving scheme In January 2003, the Institute started a 5 year employees’ saving scheme program, where the Institute contributes an amount equal to 5% of each employee’s monthly salary in addition to the 5% contribution by each employee. The Institute has the right to discontinue contributions to the savings scheme at any time without further obligation.
60 BIBF | Annual Report 2009 11 Staff cost 2009 2008
Salaries 2,084,596 1,849,401 Housing allowance 138,696 111,258 GOSI 105,564 88,082 Staff training and development 62,581 51,409 Medical benefits 66,950 57,849 Education allowance 27,709 28,680 Air fares 24,270 21,957 Transport allowance 39,853 31,580 Leaving indemnity 35,927 35,180 Relocation of staff 8,246 17,280 Membership 6,870 6,295 Recruitment and advertisement 8,782 14,917 Repairs and maintenance 11,049 10,113 Other staff benefits 12,243 5,848 2,633,336 2,329,849
12 General and administrative expenses 2009 2008
Premises 77,939 65,820 Business development 51,032 85,816 Printing and advertising 104,970 50,456 Stationery and supplies 21,590 38,380 Telephone and telex 40,559 33,758 Library books and periodical 11,342 7,288 Postage 3,766 2,979 Training materials 6,787 15,007 Public Relations & Social Activities 22,279 25,533 Repairs and maintenance 17,716 9,012 Contract services 28,639 28,756 Provisions for doutful debt 22,420 108,986 Software 17,578 11,840 Miscellaneous 37,484 12,474 464,101 496,105
BIBF | Annual Report 2009 61 Notes to the financial statements (continued) for the year ended 31 December 2009 (All amounts expressed in Bahrain Dinars unless otherwise stated)
13 Related party transactions The Institute carries out transactions in the normal course of business with related parties, defined as members of the Specific Council for Vocational Training (Banking Sector) and executive management of the Institute, individually or combined, have control or significant influence. Key management compensation
2009 2008
Salaries and other short-term benefits 513,174 501,090 Termination benefits, including staff saving scheme 43,900 39,689 557,074 540,779
14 BIBF-Bentley fund The Institute received BD500,000 from the Central Bank of Bahrain for the BIBF-Bentley fund. The purpose is to assure financial support for the program until such time as Bentley and BIBF are able to develop a financially viable self sustaining arrangement.
62 BIBF | Annual Report 2009