Move to identify achievements, failures and unfulfilled goals
KUWAIT CITY, Jan 15: The Central Bank of Kuwait is working on obliging local banks to establish a unit for following up the implementation of the strategy for formulating the future required by banks for the medium term (3-5 years), reports Al-Rai daily.
According to sources, the supervisory perception in this regard is based on the fact that each bank establishes a unit affiliated with the chairman of the Board of Directors, which is responsible for following up the implementation of the bank’s approved strategy, and standing to achieve the implementation and application ratios established in the plan.
This will also include evaluation of achieved performance through indicators to measure performance and achievement of goals, in coordination with the bank’s chief executive officer and the entire body.
The unit must also prepare detailed periodic reports for the chairman of the Board of Directors, which include identifying all the achievements, failures, and unfulfilled goals, explaining the reasons for the shortcomings and revealing those responsible for them, taking into account the comprehensive timetable for the implementation of all projects and programs in their specified times, as well as the implications of implementing each of them at the bank, community or customer level.
This unit is gaining special importance in its role in terms of monitoring or evaluating performance and considering the commitment to implement the plan. What enhances its importance is the prior approval required from the Central Bank of Kuwait to appoint its nominated members.
This means its members will hold a regulator supervisory in terms of the importance of executive management and bank managers in general, whose nomination must be approved first by the Central Bank of Kuwait before their appointment. The Central Bank of Kuwait will request each bank in this case to clarify that it has accommodated the follow-up unit, as a new administration to its organizational structure, specifically explaining the direct relationship between the unit and the board chairman. The number of members in the unit will likely differ from one bank to another, as each bank will determine it according to the size of its strategy and objectives.
In its report, the unit must also take into account the comprehensiveness of the bank’s strategy and vision, with an analysis of the risks, challenges and opportunities, as well as the strengths and weaknesses. It must follow the methodology and procedures followed in implementing projects and programs, which show how to continue serving the customers and society through the provision of high-quality technical services and products at low cost.
The sources said the decision to establish follow-up units in banks for their strategic plans is in line with the Central Bank’s request to provide banks with a strategic plan for shaping the future and to know and handle banking transfers in the world led by technology companies in relation to modern financial transactions, which are pressuring the banks. The sources described the “central” step in this regard as “necessary”, praising the regulator’s concern for the banking sector, and urging banks to be more prepared for the future to face the challenges that the global economic situation may impose.
The strategy required from banks should cover a set of basic elements, most notably: –
- Earn customer loyalty so that the bank is close to its customers, pay attention to their needs, and meet their requirements
- Development of services, products and means of providing them through modern technologies to achieve added value
- Raising efficiency by achieving greater accomplishments with available resources, the most important of which is the available customer data that can be analyzed and categorized in order to achieve in-depth knowledge of customer behavior, desires and inclinations, in order to meet them
- Enhancing the durability and raising the level of financial safety through the use of modern technologies to increase the speed of data collection, depth of analysis and prediction accuracy, in order to achieve a better ability to monitor and manage risks
- Attracting talent in financial specialties or in the science of data analysis, artificial intelligence, and other fields, providing a broader horizon and deeper insight, while looking at developing methods for attracting and preserving talent, and creating a stimulating work environment for creativity.