1. Mandate
The Department of Operations draws its mandate from the Central Bank Act of 2000 and Payment Systems Act of 2014 respectively. As part of that mandate, it offers banking services to the Government and its agencies, commercial banks and international agencies. The Department has a mission to provide• efficient and timely banking services and ensures that the payment system of Lesotho is safe and sound and compares well with those in the Southern African Development Community (SADC) region, and internationally. The key functions of the Department can be summarised as follows:
•To promote the efficient operation of the payments systems;
• To issue, manage and redeem the currency of Lesotho; and
• To act as banker and advisor to, and as fiscal agent of, the Government of Lesotho.

2. Divisions
The Department consists of three (3) Divisions namely; Banking Operations, Currency Operations and National Payment System.

a) Banking Operations Division
The main functions of the Banking Operations Division include the following:

  • To act as a banker to the banks by accepting deposits, providing bank account services, maintaining banks' clearing and settlement accounts, and other deposit accounts;
  • To operate the clearing house to provide the clearance facilities for interbank transactions;
  • To participate in the Real Time Gross Settlement System (RTGS) on behalf of the Bank and the Government; and
  • To act as banker to the Government by operating accounts and tellers' facilities for Government Departments and agencies by way of acceptance of deposits and making payments on behalf of the Government.

b) Currency Operations Division
The Currency Operations Division draws its mandate from Section 6(b) of the Bank Act, “to issue, manage and redeem the currency of Lesotho”. Thus, it is tasked with currency management which involves, inter alia, handling of bulk deposits and withdrawals by commercial banks, systemic issue of new and re-issuable currency and destruction of soiled and mutilated banknotes.

The Division follows the Clean Note Policy to uphold the standard of the national currency and, in that context, its include the following:

  • To issue Maloti and Rand to commercial banks to satisfy public demand for currency;
  • To ensure maintenance of clean quality notes that are also durable and meet machine processing standards;
  • To guard against counterfeit notes by ensuring that currency design has adequate security features;
  • To manage the national currency to ensure adequate supply of currency to meet demand at all times;
  • To redeem currency that is mutilated or has been taken out of circulation, and ensure that soiled and mutilated currency is destroyed;
  • To maintain proper and adequate records of stock of currency and to ensure that withdrawals and deposits are accounted for and properly recorded in currency registers;
  • To repatriate Rand to South Africa and collect Maloti from South Africa; and
  • To ensure safe custody of currency.

c) National Payment System (NPS) Division
The National Payment System Division is operating under the ambit of Section 6(h) of the Central Bank of Lesotho Act of 2000 and the Payment System Act of 2014. Its main function is to promote an efficient operation of payment systems. NPS performs this function through operation and administration of the Real Time Gross Settlement System (RTGS) called Lesotho Wire and through the oversight of the payment systems. The main goal of this is to ensure effectiveness in inter-bank funds transfer and reduction of payment risks, especially systemic risk.
The functions of the Division include the following:

  • To put in place appropriate legal and regulatory framework that can support a modern payment and settlement system and the implementation of RTGS for large value payments;
  • To guide the evolution of Lesotho’s payment system, focusing primarily on the overall soundness and effectiveness of the system.
  • To ensure safety and efficiency of Lesotho’s systemically important payment and securities settlement systems.
  • To facilitate financial inclusion initiatives that addresses the needs of the under-banked and the unbanked.
  • To administer, operate and monitor daily operations of Lesotho Wire for high value and time critical payments;
  • To facilitate and promote cross-border trade and investment by putting an enabling legal and regulatory framework that support deployment and operation of cross-border payment and securities settlement systems;
  • To ensure that all systematically important payment and settlement systems comply with international standards such as the Principles for Financial Market Infrastructure (PFMIs); and
  • To reduce the use of cash and paper-based instruments and promote electronic payments.

1. Mandate
The mandate of the Department of Enterprise Risk Management is to facilitate efficient and effective management of the Bank’s risks and projects and provide assurance on continuity of critical business processes at all times.

2. Objectives
The objectives of the Department include the following:

  • To facilitate an enabling environment for the identification, assessment and mitigation of bank risks;
  • o provide assurance on continued operation of critical business process at all times; and
  • To ensure Bank’s projects are efficiently managed and return value to the organization.

3. Divisions
The Department consists of three (3) Divisions namely; Risk Management, Business Continuity Management and Project Management.

a) Risk Management Division (RMD)
The functions of the Risk Management Division include the following:

  • To develop and implement risk management tools (policies, frameworks and procedures);
  • To raise awareness on risk management concepts to all levels of the Bank;
  • To guide and direct departments on risk management; and
  • To report and proffer advice to Management and the Board of Directors on risk-related issues for decision making.

b) Business Continuity Management (BCM) Division
The functions of the Business Continuity Division include the following:

  • To develop and implement business continuity management tools (policies, frameworks, guidelines, models and procedures);
  • To hold awareness campaigns on business continuity management concepts to all levels of the Bank;
  • To guide and direct departments on BCM;
  • To test and provide continuous improvement of the BCP and DR site; and
  • To report and proffer advice to the Bank on BCM issues for decision making.

c) Project Management Office (PMO)
The mandate of the Division is to foster project management excellence throughout the Bank and ensure that only projects aligned with strategy are performed, and on time, within budget and acceptable quality levels. This goal is achieved through the development of a world-class best practice capability that will also enable well-planned projects to successfully deliver expected outcomes within budget, on time, and aligned with programme and portfolio goals and objectives.
The functions of the Project Management Division include the following:

  • To provide project support services;
  • To provide project specialist services;
  • To provide project consultancy and advisory services;
  • To provide strategic and governance services on project management; and
  • To provide guidance, assistance and oversight of CBL portfolio of projects.

 

1. Mandate
The mandate of the Department of Financial Markets is to manage the country’s reserves and develop domestic money and capital markets. The Central Bank of Lesotho (the Bank) through the Department promotes the development of financial markets in Lesotho through managing official foreign reserves, implementation of monetary policy through Open Market Operations, and contracting and managing the Government’s domestic debt through issuance and redemption of Treasury Securities. Recent establishment of Maseru Securities Market trading platform will go a long way in deepening the market and enhancing secondary market activities.

2. Divisions
The Department consists of two (2) Divisions namely; Reserves and Market Operations, and Market Risk and Development.

a) Reserves and Market Operations Division
Through the Department of Financial Markets, the Bank is mandated by section 6 (f), of the Central Bank of Lesotho Act of 2000 to own, hold and manage its official international reserves. The primary motive of the Bank for holding reserves is to maintain the value of the Loti (LSL) and to be in a position to settle the country’s international obligations promptly.
The functions of the Market Operations Division include the following:

  • To Maintain and manage the foreign exchange reserves at adequate levels to facilitate the foreign transactions for Lesotho;
  • To coordinate all trading and other related activities on the trading floor and provide support to broking and dealing clients; and
  • To undertake securities’ auctions to support monetary policy operations.

b) Market Risk and Development Division
The functions of the Market Risk and Development Division include the following:

  • To provide analytical support to reserves management function in order to meet the objectives of holding of reserves;
  • To prepare and monitor strategies for portfolio management;
  • To monitor the risk exposure of reserves against set risk parameters in line with the Bank risk tolerance; and
  • To initiate and manage developmental projects to domestic financial markets.

1. Mandate
The mandate of the Department of Human Resources is to attract and retain top talent through the adoption and subsequent implementation of forward thinking HR solutions.

2. Objectives
The objectives of the Department include the following:

  • To provide strategic advice to the Bank on all HR related issues;
  • To attract and retain top talent for the Bank that enables delivery of its mandate;
  • To ensure that members of staff are motivated;
  • To ensure maximum utilisation of talent;
  • To create high performing teams;
  • To engender trust in HR;
  • To build harmonious relationships between management and staff; and
  • To collaborate with management and line departments to ensure proper HR management.

3. Divisions
The Department consists of four (4) Divisions namely; Business Partners, Centre of Expertise, HR Shared Services and Facilities Management.

a) Business Partners Division
The functions of the Business Partners Division include the following:

  • To act as the front office of HR thus providing immediate service on all HR functions to business units; and
  • To consult CoE for advice or solutions and relies on HRSS for processing of line/departmental applications.

a) Centre of Expertise (CoE) Division
The functions of the Centre of Expertise Division include the following:

  • To develop tools, frameworks, policies, processes and procedures; and
  • To sell and work-shop all HRD tools to management and staff.

b) HR Shared Services (HRSS) Division
The functions of the HR Shared Services Division include the following:

  • To provide the administrative HR support including processing of all applications for loans, staff leave/s, medical aid and managing all HR records (soft & hard); and
  • To provide relevant services as the super-user of the operational HRIS, including support to HR practitioners, training all other users and acting as interface between CBL and the service provider.

c) Facilities Management Division
The Facilities Management Division is charged with the responsibility of providing support services to operational departments of the Bank.
The functions of the Division include the following:

  • To identify, assess, control and manage safety, health and environmental risks through dynamic, formal, structured and holistic processes to facilitate effective risk reduction plans and actions throughout the Bank to either eliminate or minimise incidents in the work place;
  • To manage and maintain bank-wide facilities, including all immovable and movable assets being, buildings, equipment and furniture, vehicles and all other contents thereof;
  • To transport all passengers on official duties of the Bank and assist with repatriation exercises of the Bank;
  • To ensure good housekeeping and provision of refreshments to all staff, meetings and visitors;
  • To maintain all Bank premises by ensuring the landscape to ensure welcoming ambience at all times;
  • To provide central depository of all the hard copy records of the Bank, to provide messenger services for internal and external deliveries of mail, and to manage, safely keep, and retrieve all records of the Bank;
  • To consolidate capital budget requirements of the Bank and manage the implementation thereof; and
  • To ensure that policies and procedures that guide the above mandates are in place and up to date to ensure smooth operation.

1. Mandate
The Department of Supervision derives its mandate from the Central Bank of Lesotho Act of 2000. Section 6 of the Act states the following specific objectives of the Central Bank of Lesotho which are undertaken by the Department of Supervision:

  • To foster the liquidity, solvency and proper functioning of a stable market-based financial system;
  • To formulate, adopt and execute the foreign exchange policy of Lesotho;
  • To license or register and supervise institutions pursuant to the Financial Institutions Act 1999, the Money Lenders Act 1989, the Building Finance Institutions Act 1976, and the Insurance Act 1976; and
  • To promote the safe and sound development of the financial system.

2. Key Functions

  • In order to achieve the above-mentioned objectives, the Department undertakes the overall regulatory and supervision of financial institutions in Lesotho, being the commercial banking, insurance, investments and securities as well as other non-bank financial institutions.
  • The regulatory function entails formulation, adoption and execution of relevant financial institutions policies; formulation and execution of relevant laws regulating the financial institutions.
  • The supervisory role entails formulation, adoption and execution of relevant financial institutions supervisory frameworks including undertaking appropriate supervisory actions.
  • The Department periodically publishes relevant supervisory reports on the financial health of the financial sector in Lesotho.

3. Divisions
The Department consists of four (4) Divisions namely; Banking Supervision, Insurance, Investments and Securities Supervision, Non-Banks Supervision and Deposit Insurance.

a) Banking Supervision Division
The Banking Supervision Division is responsible for the supervision of banks in Lesotho. This function is discharged through off-site monitoring and on-site inspections. Off-site monitoring analyses financial statements and compliance reports submitted periodically to the Central Bank of Lesotho. The onsite inspections evaluate applications for new banking licenses, mergers, acquisitions, changes in ownership control as well as requests for exemptions from legal and regulatory requirements, as permitted by law. The accuracy and reliability of data and information submitted to CBL by the banks is confirmed through on-site inspections. The inspections also look at areas that cannot be readily assessed through prudential reports. Banks are required to operate in a sound and safe manner and to comply with the legal and regulatory requirements, as well as preventing and detecting money laundering in the financial institutions.
The functions of the Division include the following:

  • To develop and implement an off-site surveillance system for banks that continuously monitors the financial health of banks;
  • To prepare periodic reports on the financial soundness of and the review of compliance with laws and regulations by banks;
  • To conduct examinations of banks to ensure effective regulatory and supervisory oversight of Banks;
  • To verify accuracy of data submitted by banks to the CBL and provide feedback to the off-site information system;
  • To prepare comprehensive reports of examination on financial condition, adequacy of risk management systems and internal controls, adequacy of Board and Senior Management oversight and Management Information Systems and extent of compliance with laws and regulations of examined banks;
  • To follow-up banks’ compliance with directives and other corrective measures issued by the Commissioner pursuant to examinations conducted and offsite reports;
  • To recommend to the Commissioner possible course of action in handling problem banks;
  • To arrange meetings with the Board, Management and Auditors of banks to discuss areas of concerns arising out of examinations and reports submitted to the CBL;
  • To evaluate applicantions for mergers, acquisitions and change in ownership control of banks;
  • To evaluate requests for branching and establishment of agencies and other extension offices of existing banks;
  • Cooperate with other supervisory authorities in cases of cross border banking activities;
  • To advise the Government of Lesotho through the Bank on appropriate domestic policies to implement and to ensure that an enabling environment in foreign exchange controls exists;
  • To hold consultative meetings with data providers such as the Department of Customs and Excise, Authorized Dealers and the exporting community, in order to ensure compliance to Exchange Control Regulations;
  • To issue instructions to Authorized Dealers whenever there are policy changes or adjustments;
  • To process all foreign exchange applications submitted to the Central Bank, in terms of the Regulations.
  • To monitor inflows and outflows of Foreign Exchange Transactions from the Authorised Dealers and ADLA’s in order to ensure compliance with Exchange Control Laws.
  • To compile statistics quarterly from above files for submission to the Research Department of the Central Bank and advice on policy direction.
  • To monitor inflows of export proceeds to ensure compliance with the Regulations.
  • To inspect the records of authorized Dealers and ADLA’s to ensure compliance with Exchange Control Regulations and Guidelines; and
  • To process and analyze Exchange Control Declaration Forms F178.

b) Non-Banks Supervision Division
The Non-Banks Supervision Division is generally responsible for maintenance of financial system stability through the supervision and regulation of Non-banks Financial Institutions (NBFIs) in Lesotho. Its mandate is derived from the following CBL functions as contained in the CBL Act of 2000:

  • To foster the liquidity, solvency and proper functioning of a stable market-based financial system;
  • To license, register and supervise institutions pursuant to the Financial Institutions Act of 2012, the Money Lenders Order of 1989, and the Building Finance Institutions Act of 1976, and the Insurance Act of 1976; and
  • To promote the safe and sound development of the financial system.

The functions of the Division include the following:

  • To formulate, adopt and execute relevant NBFIs policies and supervisory frameworks;
  • To formulate and execute relevant laws regulating the non-bank financial institutions;
  • To develop Financial Sector through building requisite financial infrastructure and participating in other national initiatives with the same aim, e.g. Financial Inclusion;
  • To undertake on-site and off-site inspections and publishing relevant supervisory reports on the financial health of NBFIs in Lesotho;
  • To collect and compile NBFIs statistics;
  • To license and register NBFIs; and
  • To undertake financial consumer protection through handling of consumer complaints.

c) Insurance, Investments and Securities Supervision Division
The Insurance, Investments and Securities Supervision Division is generally responsible for maintenance of financial system stability through the supervision and regulation of Insurance, Investments and Securities sectors in Lesotho. Its mandate is derived from the following CBL functions as contained in the CBL Act of 2000:

  • To foster the liquidity, solvency and proper functioning of a stable market-based financial system;
  • To license, register and supervise institutions pursuant to the Financial Institutions Act of 2012, the Money Lenders Order of 1989, and the Building Finance Institutions Act of 1976, and the Insurance Act of 2014; and
  • To promote the safe and sound development of the financial system.

The functions of the Division include the following:

  • To formulate, adopt and execute relevant insurance, investments and securities policies and supervisory frameworks;T
  • o formulate and execute relevant laws regulating the financial institutions in the insurance, investments and securities sectors;
  • To develop the financial sector through building requisite financial infrastructure and participating in other national initiatives with the same aim, e.g. Financial Inclusion;
  • To undertake on-site and off-site Inspections on the regulated institutions;
  • To license institutions operating insurance, investments and securities businesses; and
  • To undertake financial consumer protection through handling of consumer complaints.

d) Deposit Protection Division
The Deposit Protection Division is responsible for the establishment of an explicit Deposit Insurance System (DIS) that will:

  • Protect the small uninformed depositors from loss of their deposits;
  • Contribute to the stability of Lesotho’s financial sector by providing early detection of troubled banks;
  • Ensure timely intervention on insolvent banks;
  • Mitigate moral hazard in the financial sector; and
  • Assist in the event of a financial crisis.

The Division is also charged with the responsibility of establishing a fund that will act as a deposit guarantee that compensates depositors in the event of a bank failure. The functions of the Division towards the establishment of an explicit Deposit Insurance System include the following:

  • To develop and amend policies, legal framework and manuals of the DIS for Lesotho;
  • To advise the Bank and hence the country on the appropriate policies to be adopted for the DIS;
  • To identify strategies that will enhance the enforcement of the regulations governing the DIS activities in Lesotho;
  • To prepare reports on the activities of the Division and reports to the relevant bodies;
  • To participate in Local, Regional and International initiatives beneficial to the Division, the Bank as well as the country and;
  • To liaise with Regional and International initiatives beneficial to the country;
  • To assist in the co-ordination of sub-regional, regional as well as international development efforts;
  • To liaise with all the relevant stakeholders of the DIS activities in Lesotho;
  • To organise sensitization campaigns for the DIS; and
  • To design proper risk analysis tools for the DIS.

The functions of the Division towards the establishment of a fund that will act as a deposit guarantee that compensates depositors in the event of a bank failure include the following:

  • To ensure proper setting up and efficient management of the Fund;
  • To set and collect premiums from participating institutions;
  • To verify and process claims;
  • To reimburse or pay out depositors up to a maximum insurable limit in the event of a bank closure;
  • To prepare financial statements for the Deposit Insurance Fund;
  • To establish a proper record keeping system in respect of the Fund;
  • To monitor performance and exploits proper investment opportunities for building the Deposit Insurance Fund; and
  • To monitor proper resolution and liquidation of failing banks in order to ensure protection of the DIS fund;

1. Mandate

The mandate of the Department of Internal Audit is to determine whether the systems of financial and risk management, internal control and governance processes, as designed and represented by Management, are adequate and functioning in the following manner:

  • Risks are appropriately identified and managed;
  • Business objectives are achieved in an efficient and effective manner;
  • Reliable financial and operating information is provided to Management and staff for decision making and accountability;
  • Legislative, regulatory or contractual requirements are recognised and met; and
  • Resources are adequately protected, used economically and effectively applied against stated priorities.

2. Objective
The objective of the Department is to be a strategic partner and work co-operatively with Management and staff to improve the economy, efficiency, and effectiveness of operations. It assists the Central Bank of Lesotho in accomplishing its objectives by bringing a systematic and disciplined approach to evaluate and improve the effectiveness of the Bank's risk management, control, and governance processes.

3. Divisions
The Department consist of two (2) Divisions namely; Operational, Financial and Compliance, and Information and Technology Audits.

The functions of the above-mentioned Divisions include the following:

  • To evaluate the reliability and integrity of information and the means used to identify measure, classify, and report such information;
  • To evaluate the systems established to ensure compliance with those policies, plans, procedures, laws, and regulations which could have a significant impact on the Bank;
  • To evaluate the means of safeguarding assets and, as appropriate, verifying the existence of such assets;
  • Evaluate the effectiveness and efficiency with which resources are employed;
  • To evaluate the operations or programs to ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned;
  • To monitor and evaluate governance processes;
  • To monitor and evaluate the effectiveness of the Bank's risk management processes;
  • To perform consulting and advisory services related to governance, risk management and control as appropriate for the Bank;
  • To report periodically on the Internal Audit Department’s purpose, authority, responsibility, and performance relative to its plan;
  • To report significant risk exposures and control issues, including fraud risks, governance issues, and other matters needed or requested by the Board; and
  • To evaluate specific operations at the request of the Board or Management, as appropriate.

The Department of Research work is enshrined in the Central Bank of Lesotho Act No.2 of 2000. The Department implements the Bank’s function of:
a) Ensuring monetary stability pursuant to Sections 5 and 6 (c) & (d)
b) Being advisor to Government pursuant to Section 41 (3) (c) (i) & (ii)
c) Producing reports on the state of the economy pursuant to Section 46 (1) & (2)

Key Functions

  1. Pursuant to Sections 5 and 6 (c) & (d) the Department is responsible for the implementation of monetary policy which involves maintaining the peg between the Loti and the Rand. The Department is the Secretariat to the Monetary Policy Committee (MPC) of the Bank. The research and analysis that informs the monetary policy stance by the MPC is conducted by the Department.
  2. Pursuant to Sections 41(3) and 46(1) the Department is responsible for conducting economic research and analysis and proffer advice to Government through submission of reports to the office of the Minister of Finance.
  3. Pursuant to Section 46(2), the Department publishes the reports it produces through regular economic reviews and seminars.

Scope of Work
The work of the Department is therefore organized around the following activity clusters:

  • Research & Analysis
  • Reports & Publications
  • Collection, Compilation &Dissemination of Statistics
  • Projections & Forecasts
  • Monetary Policy Operations
  • Regional Integration Activities


Organization
The Department is organized into four Divisions supported by a Unit as follows:

  • International Economics Division
  • Statistics Division
  • Studies & Analysis Division
  • Modelling & Forecasting Division
  • Knowledge Management Unit

 

1. Mandate
The mandate of the Department of Corporate Affairs is to provide a specialised and technical advice to the Bank on legal, corporate governance, communication, compliance, strategy, and secretariat services.

2. Divisions
The Department consists of the six (6) Divisions namely; Legal and Advisory, Corporate Communication, Corporate Governance, Compliance, Strategy Management and Board Secretariat.

a) Legal And Advisory Division
The Legal and Advisory Division is charged with the primary responsibility of managing the Central Bank of Lesotho’s legal risk. This is carried out through the exercise of the responsibilities of the Legal and Advisory Counsel as a function within the Bank. The functions of the Division include the following:

  • To develop and review of the Bank’s regulatory and supervisory legal framework;
  • To manage the Bank’s litigation;
  • To provide legal advice and counsel to the Bank; and
  • To manage contracts of the Bank.

b) Corporate Communication Division
The Corporate Communication Division is charged with the responsibility of promoting effective communication with both internal and external stakeholders thus enhancing the corporate brand image and reputation of the Bank.

The functions of the Division include the following:

  • To keep employees informed about work related issues;
  • To foster alliances and lobby the support of stakeholders for the various programmes and activities of the Bank;
  • To manage the corporate social responsibility programme of the Bank;
  • To monitor and improve customer care;
  • To deal with stakeholder queries and enquiries;
  • To liaise with the media;
  • To provide technical support to management on communication issues;
  • To provide protocol services including management of events of the Bank; and
  • To promote strong bilateral and multilateral relations with the Bank’s international stakeholders.

c) Corporate Governance Division
The Corporate Governance Division is charged with the responsibility of management of and ensuring that there are effective and efficient governance and ethics processes within the Bank.
The functions of the Division include the following:

  • To monitor governance of Information Technology;
  • To promote the culture of Business Practices and Ethics;
  • To manage performance management across the entire Bank;
  • To ensure the maintenance of the code of Ethics;
  • To establish and monitor Ethics Management process within the Bank;
  • To develop Bank-wide Fraud prevention plan;
  • To conduct Fraud and Ethics risk assessment process within the Bank; and
  • To conduct ethics awareness and rollout and an on-going Training on ethics management.

d) Compliance Division
The Compliance Division is responsible for oversight and monitoring of Compliance Risk Management and control systems. The Compliance Function supports Senior Management in managing the compliance risks and embedding compliance in the culture of the Bank. In this regard, the Division supports the Bank with the following:

  • To embed compliance with laws, regulations, business principles, rules of conduct, customer agreements and established good business practices in every aspect of the Bank;
  • To establish and maintain effective compliance risk management and control systems, including monitoring and reporting; and
  • To provide timely advice to the Bank on relevant changes in the compliance environment.

The functions of the Division include the following:

  • To advise the Bank on Compliance issues;
  • To support the Bank to raise awareness of Compliance Risk Appetite and established best practices;
  • To support the Bank by identifying, assessing and overseeing the mitigation of Compliance Risks; and
  • To report on compliance matters that warrant the attention of Management and the Board. Such reports include, as a minimum, exceeded compliance risk tolerance levels and unaccepted business practices.

1. Mandate
The Department of Finance was formed in fulfilment of the requirements of Section 53 of the Central Bank Act of 2000 (Accounts and Annual Report).

2. Divisions
The Department consists of two (2) Divisions namely; Accounts and Budget, and Treasure Operations

a) Accounts and Budget Division (ABD)
The ABD is charged with the responsibility of providing financial information for the Bank. In terms of the CBL act 2000, the Division seeks to continually develop and maintain a sound accounting system for the Bank within the framework of the evolving International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS). It also efficiently monitors the budget in order to serve the Bank in its planning, coordinating and controlling function.
There are currently three sections under the ABD, namely; Financial Accounting, Accounting Standards and Budget, and Management Accounting.
The key objective of the above-mentioned sections is to develop and maintain a sound accounting system from which reliable financial statements can be produced from time to time. In order to implement these objectives, the two sections have identified the following core functions as key performance areas:

The key functions of the three sections are to:

  • Collect, analyse, summarise and post accounting data to the general ledger on a daily basis;
  • Match purchase orders to suppliers’ invoices and process payments appropriately;
  • Ensure reasonableness of accounts in the general ledger;
  • Maintain the Fixed Assets Register (FAR);
  • Support the process of acquisitions, depreciation, tax depreciation and disposal of fixed assets;
  • Process staff monthly payroll in accordance with instructions from Human Resources Department;
  • Act as issuers of cheque books and commemorative coins;
  • Maintain proper books of accounts and prepare monthly, quarterly and annual financial statements;
  • Prepare, every year end, the final accounts of the Bank as required by the CBL Act 2000 and coordinate the work of the external auditors in the auditing of the Bank’s accounts;
  • Assess and mitigate risks, and ensure that risk registers are kept up to date.
  • Give guidance and / or assistance to other divisions in relation to financial accounting issues.

The strategic objectives of this Division have been designed to address specific challenges. In particular, reporting that is compliant with IFRS and IAS, Innovation and Modernisation, integration of financial systems, and review of Departmental structure in line with the approved Enterprise Resource Programme (ERP) and Effective usage of technology systems in all areas within the Division.
Budget and Management Accounting Section
The objective of the Budget and Management Accounting Section is to enable planning, directing and controlling of the Bank’s budget that is aligned to strategy. It also provides financial information of the Bank in a manner that will enable Management to measure performance against approved plans and therefore enable decision making process.
The Key functions of the Section include the following:

  • To coordinate and compile the divisional budgets of the Bank by issuing budget instructions; classify data from division’s proposals and conduct interviews;
  • To consolidate and submit budget proposals to the Budget Committee;
  • To ensure that the IDU System is updated with the approved budget;
  • To monitor the implementation of the approved budget versus the availability of funds;
  • To ensure that items are charged to appropriate account code centres
  • To produce monthly management reports, variance analysis that highlights areas of concern and recommendation.
  • To produce analytical reports and forecasts that will assist Management to make informed decisions.

b)Treasury Operation Division
The Division is charged with the responsibility of ensuring that all the foreign exchange receipts due to and payments by the bank are received and made by it and recorded in the Bank’s accounting system.
The objective of the Division is to ensure that all deals contracted by the Financial Market Department and instructions received directly into the Treasury Operations Division are confirmed, settled and properly accounted for in the Bank’s accounting records.
The functions of the Division include the following:

  • To confirm all contracted deals with counterparties to the specifications of the deals;
  • To settle all contracted deals with counterparties to the specifications of the deals;
  • To account for all transactions entered into by the Division into the bank’s General Ledger system;
  • To attend to queries raised by counterparties or initiating such queries as necessary;
  • To prepare the annual budget for the Division; and
  • To prepare the annual work programme for the Division.

Reconciliations and Verifications Section (RAV):

The main purpose of this Section is to provide assurance that the daily operations of the Department conform to the specifications of both the Accounts and Budget and Treasury operations divisional policies and procedures manuals, guidelines and applicable laws. (e.g. tax and labour codes).
This activity is intended to provide oversight and assurance to the Director of the daily management of the operational risk of all functions in the Department.

The functions of the Section include the following:

  • To ensure compliance with the internal control procedures intended to manage operational risks inherent in the day to day management of the Banks finances, reserves and trading of securities;
  • To ensure that Treasury securities auctions and redemptions are accurate;
  • To ensure that transactions are recorded accurately in the General Ledger;
  • To reconcile all the Banks’s foreign Bank accounts and domestic securities accounts; and
  • To reconcile all the Bank staff Loans reconciliation accounts and all payroll related accounts.
  • Identify operational risks inherent in the day to day management of the Department’s operations and advise Director on how to manage them.
  • Obtain certificates of year end balances from counter parties.

1. Mandate
The mandate of the Department of Information Communication Technology is to enable operations of the Bank through provision of information technology based services required to facilitate the efficiency and effectiveness of the Bank’s business processes

2. Objectives
The objective of the Department is to support strategic direction of the Bank by enabling the Bank in its different functional areas through;
•Planning of Information Systems and Infrastructure required to support the strategic direction
•Delivery, Maintenance and support of information systems and infrastructure required to support the strategic direction
•Training on ICT Systems and Technologies

3. Divisions
The Department consists of three (3) Divisions namely; Enterprise Architecture and IT Governance, Business Solutions and Infrastructure and Operations.

a)Enterprise Architecture and IT Governance Division
The mandate of the division is to determine the information technology requirements of the various functional units of the Bank and to establish information technology roadmaps to best support the short-term, medium-term to long-term objectives of the Bank. The division is also mandated implement IT Governance and Service Management practices in order to ensure that ICT department delivers its services effectively, efficiently and in accordance with best practices in the field.
Functions of the Enterprise Architecture and IT Governance Division include the following:

  • To facilitate the planning of information technology solutions for the Bank through establishment of enterprise architectural roadmaps
  • To optimize the Banks business processes in order to enhance the overall efficiency of the Bank in carrying out its operations
  • To implement IT Governance and Service Management practices in order to ensure that ICT department delivers its services effectively, efficiently and in accordance with best practices in the field
  • To manage IT compliance to technology licensing requirements, general IT controls as well audit and risk management recommendations

b) Business Solutions Division
The mandate of the division is to execute projects for delivery of new or enhanced Information Technology based solutions required to support short-term, medium-term to long-term objectives of the Bank. The division is mandated to maintain and support the Information Technology based solutions of the Bank.

Functions of the Business Solutions Division include the following:

  • To undertake detailed analysis of business area requirements for planned information technology based solutions
  • To identify solutions to best address the requirements for planned information technology based solutions
  • To acquire, build, enhance and integrate Information Technology based solutions
  • To maintain and support the Information Technology based solutions
  • To provide training of end users on implemented Information Technology Based Solutions

c) Infrastructure and Operations Division
The mandate of the division is to establish new or enhanced networks, hardware and infrastructure components required to support short-term, medium-term to long-term objectives of the Bank. The division is also mandated to look after IT security infrastructures to protect the Bank’s environment and information.

Functions of the Infrastructure and Operations Division include the following:

  • Establishment and maintenance of network and data communications infrastructure platforms necessary to host business applications;
  • Establishment and maintenance of data center infrastructure technologies;
  • Establishment and maintenance of network and infrastructure security solutions
  • Establishment of disaster recovery and business continuity measures on hardware, networks and infrastructure;
  • Provision of end-user training on desktop automation software solutions, collaboration and mobile software
  • Operating the end-user support service desk

Financial Indicators

24 May 2019

Loti / US Dollar 14.3975
Loti / Euro 16.1187
Loti / Pound 18.2460
Loti / SDR 19.8190

 Monthly Inflation (%) 2018 to 2019

  Net International Reserves

RESEARCH & SUPERVISION DATA

13.3388