Monday, March 29 2010 16:28
New shareholder pledges to make Anelik Bank market leader
ArmInfo. Anelik Bank gained renewed momentum after Lebanese CreditBank acquired a 51pct stake in it in the middle of 2009. The bank raised the statutory capital to 14.3 billion drams, and joined the customer strategy of the Lebanese mother company reckoning with the specifics of the local market, which is very important. Anelik Bank’s identification with the Lebanese shareholder is in process, since the most important measures are still to be taken. The new shareholder is seriously committed to improve the bank’s positions in the market. In an interview with ArmInfo Deputy Director General of CreditBank Rudolph Atallah tells about Anelik Bank development plans for the nearest future.
Mr. Atallah, it is known that large-scale measures are currently being taken at Anelik Bank to identify the following three structures: Anelik Bank and Russian Anelik RU with the Lebanese CreditBank. At what stage is the process and what effect will it have on further activity of the bank?
Let me start by saying that after Lebanon gained independence in 1943 and the Lebanese Central Bank was created in 1964, the banking system in Lebanon began to prosper and the Lebanese bankers have been considered to be the pioneers of the banking industry, especially in Arab countries, despite the severe effects of the 1958 local troubles and the 15 years of civil war (from 1975 to 1990).
Back to your question, I would like to say, first of all, that CreditBank ranks actually among the ‘’Top 20’’ out of 65 banks in Lebanon by key figures. Over the last 4 to 5 years the bank’s performance has been excellent. We are among the leading banks in Lebanon by trade banking.
Our bank was founded in 1981as a family business, under the name of ‘’Crédit Bancaire’’. Afterwards, in 1992 precisely, it acquired the ‘’Crédit Lyonnais Liban’’ (the Lebanese subsidiary of the famous French international bank ‘’Crédit Lyonnais’’) and renamed the new entity resulting of this absorption ‘’CreditBank’’. At present, the bank employs 300 people, has 16 branches throughout Lebanon, with a vast network of correspondent accounts throughout the world and clients from all the countries in the Middle East.
We have chosen the Armenian market because of our high interest to Armenia. What should be known here is that nearly 400,000 Armenians live in Lebanon since the beginning of the 20th century, with a mentality very similar to ours.
The acquisition of the control stake in Anelik Bank is one of the most important steps that CreditBank has taken towards developing its span of activity and international presence. We still have a number of important tasks to tackle in view of enhancing further the activity of Anelik Bank. So, our participation in the capital of Anelik Bank implies not only its replenishment but also the development of its ‘’Know-How’’, based on our experience. Based on the foregoing, we can say that our participation will improve Anelik Bank’s positions in the market, as our goal is to become the leader through the introduction of new products and the implementation of new marketing approaches.
While the identification of the two structures will still take some time, we can already say, with confidence, that Anelik Bank and CreditBank have a single body. Organization wise, we have set up a new structure at the bank with various new committees, in application of the most recent corporate governance principles. One of our most important and prior steps will be introduction of a new IT system.
It is worth noting also that we have already acquired a new building in the center of Yerevan, at Vardanants Street 13, and launched major repair that will be completed by the end of this year. The interior of the building will be fully reshaped, but the Armenian style of the facade will be preserved.
How much should be invested in the projects you have offered? What particularly are you going to introduce in the IT-sector?
We assure you that several millions of dollars will be invested in the processes of creation of solutions, as the final efficient outcome, and results, will rely on a developed IT-system. Within two years, we will fully renew the IT-system in line with the most updated technologies. It is important for us to communicate between Lebanon and Armenia easier. For their effective, efficient and operative activities, CreditBank and Anelik Bank must have the feeling of closeness despite the distance. At present, the IT-specialists are developing a project and estimating the necessary amount of investments needed. There are some difficulties with the language barrier, as Anelik Bank’s present system uses the Armenian and Russian languages.
Will you revise the credit policy of the bank? Anelik Bank and CreditBank are expected to launch co-financing of big projects in Armenia. Have you made any specific steps in that area?
We are not keen to the idea of modifying the profile or credit policy of Anelik Bank as its experienced executive board is more aware of the specifics and requirements of the Armenian market. We will presently work on improving the present policy and boosting client relationships.
Whereas to project co-financing, the process has already been launched. Theoretically, the tools are ready and we are expecting to receive several proposals from our colleagues at Anelik Bank. We have recently studied the first project in Yerevan and collected the necessary documentation. If approved in Lebanon, the project will be funded. Decisions on the provisions for loans will be made quite easier in future when up-to-date IT systems are introduced. We will not set any limits on the loan size and will estimate, on case-by-case basis, every project. In addition, CreditBank and Anelik Bank share risks equally.
Anelik system of money transfer is still the locomotive of Anelik Bank. Did the Lebanese Central Bank permit CreditBank to work on the given system? Will this system be in demand in the Middle East?
Lebanese banks, unlike Armenian ones, do not need any special permission by the Central Bank of Lebanon to develop or use payment systems.
Credit Bank has not yet started working on Anelik system, but the process will be launched within the coming months. We are currently studying the possibilities of applying Anelik system not only at CreditBank but also to propose the system to other Arab banks. Since Russia is the country of origin of the Anelik system, our colleagues from Anelik.RU, particularly Mrs. Galina Voronina, will travel to Lebanon to organize a special presentation of Anelik system. We have already launched negotiations with a number of Lebanese banks and will involve at least ten of them in the system shortly.
Introduction of the Arab world to the new system will require a certain period of time. We must benchmark the system first, then create the necessary awareness to its services and explain its advantages compared to other systems operating in Lebanon to the interested institutions.
Anelik Bank has serious rivals on the local and regional markets, including the Western Union and MoneyGram systems. Since Western Union is not represented in Armenia, this could give us additional advantages.
One of the ideas that could be used in favor of the system is that while dealing with various systems, CreditBank does not provide any guarantees or reduce tariffs to its customers, whereas with the Anelik system, customers will be provided with security and reliability guarantees and will enjoy the most competitive tariffs.
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