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Institute of Banking Studies

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Director General’s Message During the year 2015/2016 the Institute of Banking Studies (IBS) proceeded on implementing its board-approved training plan. On top of its priority list is to totally upgrade IBS business model, enabling to expand its services and beneficiary base, while providing better services. IBS has been able to deliver its services to several entities other than the contributing banks through contractual programs, in addition to the participation of a number of trainees from different sectors in the public programs and activities offered by the IBS as part of its annual plan. Year 2015/2016 witnessed numerous achievements, mainly the ifs University College-UK, accreditation for 3 professional certificates offered by the IBS: Certificate of Kuwaiti Graduates Development Program (KGDP), Advanced Certificate in Credit Management (ACCM), and Risk Management Certificate (RMC), as well as the renewal of the accreditation for 3 other certificates: Certificate in Credit Management (CCM), Certified Bank Branch Manager (CBBM), and Certified Assistant Bank Branch Manager (CABBM). IBS received the IQUAD Learning 2016 – Technology Blend Award, featuring the spearhead in the field of E-Learning for year 2016, in addition to providing its customers with advanced services such as the new database “Bayanati” which provides online financial statements of banks and companies, and via the electronic tests system to determine the level in English Language. An initiative by the Central Bank of Kuwait and the Kuwaiti Banks, and for the second consecutive year, IBS has provided the annual scholarships program for Kuwaiti graduates, to obtain master degree from the world’s best universities according to global ratings in this discipline. This initiative offers a Masters' Degree level MBA / MSc scholarships for Kuwaiti graduates to pursue their education in Finance, Economics, Accounting and Business. The IBS implement, monitor and supervise this program, in addition to the cooperation with the Manpower and Government Restructuring Program (MGRP) to conduct training program for Kuwaiti university graduates to prepare them to work in the banking sector.

For the seventh consecutive year, IBS has continued cooperation with Harvard Business School to present an executive education program for banking and finance executives in the GCC region. This year’s program title was “Leading Strategy Execution in Financial services”. IBS continue to offer professional certificates accredited internationally. And following the success of the leadership seminars, IBS have been offering two seminars during 2015-2016, the first entitled “MOXIE: The Secret to Bold and Gutsy Leadership” was presented by the well-known speaker John Baldoni, and the second entitled “The Fred Factor: How passion can turn the Ordinary into the Extraordinary” was presented by the

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international speaker Mark Sanborn. In addition, IBS continued to run activities at the regional and international levels.

During 2016/2017 IBS will continue to upgrade its programs and activities in order to meet the human development needs in the Kuwaiti banking and finance sectors, as well as all other institutions and sectors in the country. In so doing, IBS is keen to adopt world’s best competitive standards, thus contributing to the development and prosperity of the economy and banking industry in the State of Kuwait.

Yours Sincerely,

Prof. Yaqoub S. Y. Alrefaei Director General

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Establishment The Institute of Banking Studies (IBS) is a not-for-profit semi-governmental organization that was originally established in 1970 by an Amiri Decree as the "Banking Studies Center". It was conferred the status of a Specialized Institute in 1982 in the name of “Institute of Banking Studies” (IBS) by an amendment of the Amiri Decree. IBS functions under the auspices of the Central Bank of Kuwait. By virtue of the Amiri Decree, the IBS can offer education, training and English language programs and research to serve the developmental needs of the Kuwaiti banking and finance sector.

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Experience With nearly 50 years of experience of working closely with the banking and financial sector of Kuwait, the IBS has been instrumental in the process of transfer of know-how and new ideas to this vital sector. It has diversified its product offerings to include professional certification programs, executive development programs, training and development courses in ten major areas, assessment and testing, English language training, e-learning, specialized library services in banking and business and finance research publications. The IBS sees itself as a provider of solutions, helping its customers develops their staff and in turn their businesses. The IBS has developed an expanding network of distinctive international and regional faculty who combine academic qualifications and industry expertise. It has established global alliances with prestigious professional organizations, such as the Chartered Financial Analyst Institute, the Institute of Certified Professional Managers, Human Resources Certification Institute, the Institute of Internal Auditors and Institute of Management Accountants. It works with highly selective elite academic organizations such as Harvard Business School USA, and professional educational bodies such as Management Centre Europe (affiliated with the American Management Association), Belgium. IBS is an Associate Member of European Banking & Financial Services Training Association (EBTN). It also provides training in conjunction with the Union of Arab Banks and it offers programs in cooperation with Kuwait Foundation for the Advancement of Sciences (KFAS). The quality of services provided is of paramount importance and is recognized by the fact that a number of programs it has developed over the years are internationally accredited by ifs University College, UK (previously called ifs School of Finance), one of the world’s oldest professional bodies in banking and financial services and the only one in the UK that has been granted degree awarding powers by the Privy Council.

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Board of Directors Dr. Mohammad Y. Al Hashel Governor Central Bank of Kuwait Chairman of the Board

Mr. Majed E. Al-Ajeel Chairman

Burgan Bank

Board Member

Mr. Isam J. AlSager

Group CEO

National Bank of Kuwait

Board Member

Mr. Ali M. Al-Mousa

Chairman

Commercial Bank of Kuwait

Board Member

Mr. Omar K. Alghanim Chairman

Gulf Bank

Board Member

Mr. Talal Mohamed Reza Behbehani Chairman

Al-Ahli Bank of Kuwait

Board Member

Dr. Anwar Ali Al-Mudhaf

Chairman

Ahli United Bank

Board Member

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Mr. Adel Abdul Wahab Al-Majed Vice Chairman & Chief Executive Officer

Boubyan Bank

Board Member

Mr. Mazin Saad Al-Nahedh Group Chief Executive Officer

Kuwait Finance House

Board Member

Dr. Khalid Mohammad Alsaad Kuwait University Representative

Board Member

Prof. Yaqoub S.Y. Alrefaei Director General

Institute of Banking Studies

Secretary to the Board

As of July 1 2016

IBS Management Committee

Prof. Yaqoub S.Y. Alrefaei Director General

Lulwa Al Owaiyed Head of Administration & HR Department

Desmond Nelson Head of Training Department Huda Al-Majzoub Head of Marketing & Public Relations Department

Hassan Backeer Head of Information Technology Department Acting Head of Consultancy & Research Department

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Eman Hamed Head of Operation Division Acting Head of Operation Department

Rajyah Shoukry Head of Quality Assurance & Business Development office Tariq Bayoumi Head of Finance Department As of July 1 2016

Faculty and Consultants

Desmond Nelson Head of Training Department Hassan Backeer Head of Information Technology Department Acting Head of Consultancy & Research Department Eng. Suha Isaac Al-Awadhi, MBA Head of Professional Certification Center Senior Trainer – Training Department Dr. Ahmad Al-Otaibi Head of Islamic Programs Center & Training Consultant Dr. Riyadh Al Khulaify Consultant – Islamic Programs Center

Dr. Christopher Payne Consultant – Consultancy & Research Department Mark Kandel Trainer- Training Department Gerry Joseph Barrett Trainer- Training Department

As of July 1 2016

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Mission IBS contributes effectively to the growth and prosperity of the Kuwaiti banking and financial sector by providing state of the art professional education, training, research and consultancy services that align talent resources, experience, knowledge and skills capabilities within this sector to global standards.

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Vision A leading local and regional institution specialized in providing training, professional education, research and consultancy services in the banking and finance areas.

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Values

Client centrism

Continuous upgrading and diversification of product offerings within areas of strategic focus

Efficient operations to maximize value for money

Professionalism and integrity

Collaborative spirit

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Services Professional Education The aim of IBS educational programs is to enable individuals to enter or progress in banking and finance careers through professional education programs. The IBS continues to explore ways of offering new programs through academic partnerships with internationally renowned organizations.

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Services Professional Certification To enable standardizing of the human resources processes within the banking and finance sector in Kuwait, the IBS offers a variety of professional certification services. Some are developed in-house and are accredited by international organizations and some are exam preparation training programs for international certifications. For the latter the IBS performs the role of the authorized training and/or testing center for the international organizations. The IBS currently offers the following Exam Preparation Training Programs for the International exams for the following Global Professional Certificates:

Chartered Financial Analyst (CFA)

Human Resource Management Professional (HRMP) and The Human Resource Business Professional (HRBP)

Introductory Certificate in Marketing (ICM®) and Professional Certificate in Marketing (PCM®)

Certified Internal Auditor (CIA®)

Certified Manager (CM®)

Certified Management Accountant (CMA ®)

Project Management Professional (PMP®)

ACI Dealing Certificate

ACI Operations Certificate

Certified Documentary Credit Specialist (CDCS)

Professional Certificates of Islamic Programs:

Certificate of Islamic Banking and Financial Services (CIBF)

Islamic Finance Qualification (IFQ)

Insurance Professional Certification:

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- Insurance Diploma - Advanced Insurance Diploma - Management Insurance Diploma - Professional Insurance Certificate (PIC)

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Services Exam Preparation Programs for International Certification IBS currently provides training, exam preparation and/or testing for the following international certifications:

Chartered Financial Analyst (CFA)

The Chartered Financial Analyst Institute is the global association of investment professionals that awards the CFA and CIPM designations. The CFA Program focuses specifically on investment knowledge and with a six-decade history of maintaining a rigorous focus on globally relevant investment knowledge; the CFA Program is the most widely known and respected investment credential in the world. The IBS offers the CFA exam preparation training programs implementing a CFA Institute Exam Prep Provider Program. The IBS offers CFA Level I Exam Preparation Program, and will be offering CFA Level II Exam Preparation Program in the coming training years. Also the IBS offers the CFA Flash Program which is a mini training program for 15 days to review the 10 topics of CFA Level I, to enhance the candidate’s knowledge so as to be prepared for the international exam.

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Human Resource Management Professional (HRMP) and The Human Resource Business Professional (HRBP)

The HR Certification Institute (HRCI), established in 1976, is an internationally recognized, independent certifying organization for the human resource profession. The HR Certification Institute is the global leader in developing rigorous exams to demonstrate mastery and real-world application of forward-thinking HR practices, policies and principles.

The IBS offers two of the latest professional certificates in the Human

Resources Field: The Human Resource Management Professional (HRMP)

and The Human Resource Business Professional (HRBP) which are

recognized internationally by the HR Certification Institute.

The Human Resource Management Professional (HRMP) is a globally relevant credential that is designed to validate management-level core HR knowledge and skills. HRMP covers four main areas in the field of HR for managerial position employees. The Human Resource Business Professional (HRBP) is a globally relevant credential that is designed to validate professional-level core HR knowledge and skill. HRBP covers six main areas in the field of HR for professionals.

Introductory Certificate in Marketing (ICM®) and

Professional Certificate in Marketing (PCM®)

Both certificates are issued by the Chartered Institute of Marketing (CIM-UK), the globally recognized premier provider of professional marketing qualifications. The IBS is an Accredited Study Center; (ASC) for both certificates exclusively in Kuwait.

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Certified Internal Auditor (CIA®)

Internal Auditors who achieve the CIA® credential not only are able to

distinguish themselves and show their competency in the industry worldwide, they also enrich their professional repertoire with knowledge and tools that they can apply in any organization anywhere in the world. Issued by the Institute of Internal Auditors (IIA) in the United States, the

CIA® credential is one that all auditors at different stages in their career can

benefit from, garnering the highest professional status, wider career prospects and maximized financial rewards. The IBS is providing the exam preparation training program using the materials of a renowned publisher and certified trainers. The IIA revised the CIA program to be three topics instead of four for the Certified Internal Auditor (CIA®) program scheduled for 2013, and the IBS is presenting the exam preparation training program for the revised program. The IBS is also offering this program in Arabic (CIA Arabic) as exam preparation program for the candidates who wants to sit for the international exam in Arabic (as it is one of the international accredited exam languages by the IIA).

Certified Manager (CM®)

The Certified Manager Program is a professional training and certification program sponsored by the Institute of Certified Professional Managers (ICPM). The CM® Program develops and enhances general management skills and prepares individuals to take the CM® management certification exams. Those who successfully complete the CM® exams will receive the CM® certification, which is a prestigious credential that recognizes competency and professionalism of managers worldwide in all fields.

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The IBS is providing the exam preparation program using CM accredited materials covering the three parts of the CM certificate; also the IBS holds the international exams for all the three parts of the CM.

Certified Management Accountant (CMA ®)

The ICMA® (Institute of Certified Management Accountants) is the certification affiliate of IMA. ICMA is responsible for developing, administering, and grading the CMA exam; establishing the policies and procedures for the CMA program; and for ensuring the program’s overall integrity.

The CMA® credential demonstrates mastery of the critical accounting and financial management skills needed on the job today. The IBS is providing the exam preparation program for the CMA® using CMA accredited materials covering the two parts of the CMA® certificate.

Project Management Professional (PMP®)

The PMI’s Project Management Professional (PMP®) credential is the most important industry-recognized certification for project managers. Globally recognized and demanded, the PMP® demonstrates that you have the experience, education and competency to lead and direct projects.

The PMP® recognizes demonstrated competence in leading and directing project teams. It provides project managers with a solid foundation of experience, education and competency to successfully lead and direct projects that will have a positive impact on a company's bottom line results. The IBS is providing the exam preparation program for the PMP® using PMI accredited materials covering the nine parts of the PMP® certificate.

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ACI Dealing Certificate

The ACI Dealing Certificate is a foundation program that allows candidates to acquire a working knowledge of the structure and operation of the major foreign exchange and money markets, including the ability to apply the fundamental mathematics used in these markets, and their core products (cash, forwards and derivatives), and the basic skills required for competent participation, including the ability to apply the fundamental mathematics used in these markets. Candidates should also be able to apply The Model Code to their situation. The ACI – The Financial Markets Association is an exam body and exam preparation opportunities are delivered by third party.

ACI Operations Certificate The ACI Operations Certificate supports treasury operations teams and related groups to efficiently cope with stronger competition in the financial markets and to smooth co-operation with the regulators. Candidates will become up-to-date with the latest developments that affect the treasury operations. It also helps candidates to develop a front to end treasury view in terms of process promoting a better understanding between trading community and operations staff.

This examination has been designed to provide a benchmark for competency in all aspects of the operations process.

ACI – The Financial Markets Association is an exam body and exam preparation opportunities are delivered by third party.

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Certified Documentary Credit Specialist (CDCS)

This internationally recognized qualification was developed by the International Chamber of Commerce (ICC) France and the International Financial Services Association (IFSA) US.

Professional Certificates of Islamic Programs

- Certificate of Islamic Banking and Financial Services (CIBF)

In 2007/2008 the Institute of Banking Studies presented CIBF as an

initiative to cope with the growth in Islamic banking. This professional

certificate was supervised by a number of consultants, and has been

accredited by the General Council for Islamic Banks and Financial

Institutions (CIBAFI) in Bahrain. The accreditation committee of the

program comprised: International Islamic Fiqh Academy, The Islamic

Research and Training Institute (a member of Islamic Development Bank

Group), Islamic Economics Institute at King Abdulaziz University, Saleh

Kamel Center for Islamic Economics at Al-Azhar University, and

International Shari’ah Research Academy (ISRA) in Malaysia. Participants

who successfully complete the program receive the Advanced Professional

Diploma in Islamic Finance from Bahrain (APDIF).

- Islamic Finance Qualification (IFQ)

This is a joint initiative of both École Supérieure des Affaires (Beirut)

and Chartered Institute for Securities & Investment (London), and is

sponsored by Lebanon Bank to provide highly qualified professionals in

Islamic finance. The organization that issues IFQ certificate is the Chartered

Institute for Securities & Investment CISI, which is considered one of the

most leading professional bodies for securities and investment in the UK,

and around the world. Formed in 1992 by London Stock Exchange

practitioners, it has a global community of more than 40,000 members in

89 countries.

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In order to obtain the certificate, participants have to successfully pass

a six-week training course and an exam. Those who attend the course only

and do not undergo an exam receive a certificate of attendance, providing

that they attend 80% of the training course. The role of the IBS is to arrange

the training and ensure highly qualified instructors to prepare participants

for the certificate and CISI membership.

Insurance Professional Certification:

Working in collaboration with the Bahrain Institute of Banking and Finance, the IBS offers professional certification programs and testing in the insurance field offered by the Chartered Insurance Institute CII, London, UK. The IBS offers training courses and testing for the following professional Diplomas leading to CII certification:

Insurance Diploma

Advanced Insurance Diploma

Management Insurance Diploma

Professional Insurance Certificate (PIC)

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Services Local Certification Programs These modular programs with integrated elements are characterized by their job-based design and rigorous administration and testing. As a result, the professional certificates graduates earn have become a highly regarded testimony to their skill level in the Kuwaiti banking and finance sector. The IBS currently offers the following certificate programs:

Advanced Certificate in Credit Management (ACCM)

Certificate in Credit Management (CCM)

Certified Assistant Bank Branch Manager (CABBM)

Certified Bank Branch Manager (CBBM)

Risk Management Certificate (RMC) All above certificates internationally accredited by ifs University College, London, UK Certificate in Islamic Banking and Financial Services (CIBFS) Internationally accredited by the International Council for Islamic Banks and Financial Institutions, Bahrain

Certified Direct Sales Marketing (CDS)

Introductory Certificate in Investment Management (ICIM)

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Services

Leadership Seminars with Renowned World Speakers The IBS frequently invites renowned world speakers to present seminars for executives across the private and public sectors in the State of Kuwait

In 2015- 2016, the IBS invited the international speakers John Baldoni, and Mark Sanborn. In December 2015 Baldoni presented his seminar entitled “MOXIE: The Secret to Bold and Gutsy Leadership”, “Inc.” selected Baldoni as top 50 leadership expert and top 100 leadership speaker. In April 2016, Mark Sanborn presented his famous seminar “The Fred Factor: How passion can turn the ordinary into the extraordinary” the National Speakers Association NSA, the leading organization for professional speakers, presented Mark Sanborn with the Cavett Award at the 2007 NSA convention in San Diego, California, USA. In 2014-2015, IBS invited the international speaker Dave Ulrich, and the international researcher and speaker Laurence Haughton. In December 2014 Dave Ulrich conducted his seminar titled “How Business Wins through Talent, Leadership and Culture”. Dave is ranked by Business Week as the “number one” management educator and listed in Forbes as one of the “world’s top five” business coaches. The seminar was attended by 235 participants. In March 2015, Laurence Haughton presented his seminar

“The Reinventors: the leadership secrets of the world’s most innovative

business leaders and companies”, attended by over 100 participants.

Participants who attended these seminars were from different sectors, such as: Banks, Real State, Oil, Telecommunication, Investment,…Etc. In 2013-2014, IBS invited the international speaker Adrian Gostick, a global expert on workplace trends, to present a seminar titled “How to Make Great Things Happen”. Adrian’s books have been translated into more than 30 languages and have sold more than one million copies around the world. The Carrot principle has made frequent appearances on the New York

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Times bestseller list, and his latest work, All In, was a #1 Wall Street Journal bestseller. The seminar was one of the best seminars IBS conducted, attended by over 200 participants from different sectors. In 2012-2013, IBS invited the one and only Tom Peters to present a seminar titled "Building Success". Peters who is credited to have singly handedly established the now multi-billion management guru industry, presented his profound and practical ideas about how to transform a business to achieve success in difficult times. The seminar was attended by over 160 participants from various sectors including banking, finance, investment, oil and gas, real estate and the public sector. Dr John C. Maxwell was invited in 2011-2012 to deliver his workshop “How to Be A Real Success”. More than 200 participants tremendously enjoyed Dr Maxwell's proven practical leadership model and his lively presentation style. In the year 2010-2011, IBS invited Robin Sharma to present his signature seminar "Leading without a Title". The powerful speaker managed to invigorate the large group of over 150 participants with his inspirational and profound ideas. IBS will invite other renowned speakers in year 2016-2017, In December 2016 IBS will invite Francesca Gino from Harvard Business School and in April 2017 IBS will invite the international speaker Adrian Gostick. Clients continue to show keen interest in these events.

Services

Training and Development The IBS offers a wide range of short duration programs, workshops, seminars, symposia and conferences that aim to:

Develop the competencies, knowledge, skills and attitudes required to fill current-job performance gaps.

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Introduce the latest developments in banking and finance and relevant business and technology areas.

Through its Training and Development activities, the IBS provides its customers with world class specialized professional training experiences at home in Kuwait. Training offerings are planned within ten main areas:

Audit Banking Laws Banking Operations Credit Analysis and Management Information Technology Islamic Banking and Finance Management and Self Development Marketing and Business Development Risk Management Treasury Operations and Investment

Services

English Language Learning IBS has been offering English language learning services since 1982. The Institute designs and offers two main types of programs:

Multi-Level Programs that develop core language skills common to a wide range of job areas in the context of business and banking. These programs address the needs of language learners, from beginners to advanced, developing listening, speaking, reading and writing skills. Of this category, IBS will now offer a 4-level Business English Program. The Institute will also offer programs in collaboration with Cambridge English Language Assessment, part of Cambridge University, UK. The Cambridge English program will prepare trainees for the Cambridge PET, FCE, and CAE exams, while the Cambridge Business English Program will prepare trainees for the Cambridge

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KET, BEC Preliminary and BEC Vantage exams. Trainees who successfully complete these courses will be issued a certificate from the University of Cambridge.

Specialist Programs that address a variety of language learning

needs. These are short duration courses that develop a wide variety of specific language skills. Examples of the IBS current offerings include: English Conversation Skills (Level 1 and 2), English for Emails, English for Human Resources, English for Call Centers, English for Customer Service, English for Legal Professionals and English for Business Presentations.

English Language Audit Service that aims at assessing the client organization's requirements and matching them to the actual language aptitude/performance of their staff. Based on the outcome of the audit system, relevant syllabi and training materials will be proposed to the client organization to rectify the various linguistic problems.

Testing Service that aims at introducing various placement and aptitude tests either to place testees in the various programs offered by the English Language Unit or to help organizations with their recruitment and placement requirements.

Services

E-Learning Through E-Learning services, IBS aims to make learning available anytime, anywhere and contributes to developing a culture of life-long learning in the business and banking community. This service covers core business areas such as accounting, finance, marketing; soft skills such as communication, teamwork, leadership development and IT specialized systems as well as IT applications courses. IBS E-Learning service also addresses English language development needs through offering Clarity English program application, a system of English language training, tests and tracking service for monitoring the progress of learners. In 2014/2015,

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IBS introduced a new E-Learning Service known as “Blended Learning” via which trainees will be able to train jointly in the classroom and through E-Learning which allows them to expand their knowledge in the subject matter beyond what is presented in the classroom. This blended approach led to having IBS receive the “IQUAD Learning 2016 – Technology Blend

Award”. Furthermore the IBS was officially listed as an E-learning Case Study by Crossknowledge, a leading global E-learning provider, in their “Learning Journeys” success stories magazine which further asserts the power of the blended learning approach used by IBS. In addition, the new blended learning portal provides on demand videos covering 400 different titles. The service will be accessible on PCs, Mac and on all mobile and smart devices, thus achieving a true and full “Any Where and Any Time” learning and training. As a continuation from 2013/2014, the institute continued to offer the My Management TV Service, which provides access for Member Banks’ senior staff to View short video snippets by renowned leaders from around the world. These short video snippets are delivered by email and each addresses a specific subject relevant to daily activities.

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Services

Assessment and Testing The IBS Assessment Service can be packaged with other services or can be used as a standalone tool for a variety of purposes including selection, promotion or training need assessment.

Automated Exam Service The IBS provides secure and efficient automated testing service for customers who need to administer their tests electronically and through the web. The service meets the needs of a wide range of organizations including, public, private, professional, training as well academic organizations. It can be used for testing staff and students capturing any type of exam questions. The service features, among others, tracking, immediate reporting anytime anywhere, controlling question and exam time, specific area testing, test scheduling and ease of using the system. The Automated Exam Service can be tailored for the specific needs of interested clients and is planned and supported by the IT team at the IBS.

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Services Assessment and Testing Professional Certification Tests

Certified Documentary Credit Specialist: USA, France, UK

Chartered Insurance Institute, UK

Certified Manager (CM), ICPM- USA

English Language Tests The English Language Placement Test (ELPT)

Cambridge English Language Assessment, the University of Cambridge, UK

Online Assessment Test

The English Language Aptitude Test

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Services

Consultancy The IBS HR consultancy focuses in the area of planning and managing the execution and quality assurance of human resources development solutions. Depending on the needs of the customer, solutions may include any of the following elements: testing, training need assessment, definition of required training, developing course outlines, operational planning and budgeting and quality assurance.

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Services

Library Service IBS library service specializes in business and banking and is available for corporate customers as well as individuals. Materials include books, periodicals, training materials, research studies, annual reports, dissertations and references. The collection focuses on professional fields such as banking, accounting, finance, investment, strategic management, organization behavior, human resources management, marketing, economics, audit and information technology.

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Services

Research and Consultancy Data Provision, Bayanati For over 20 years, the IBS has collected financial data for all Kuwait Stock Exchange-listed companies. By applying our own classification to corporate balance sheets and income statements, The IBS has enhanced the ability of the users of its reports to analyze and compare companies. During 2015/2016, we launched a new data service, Bayanati, which makes this data available to users online. It is believed that Bayanati is Kuwait’s leading online source of financial data; and will be the indispensable tool for anyone analyzing corporate Kuwait. The main features of this data tool are: • Over 20 years of financial data covering all Kuwaiti stock exchange-listed companies, and the largest GCC banks. • Easy access to the online database, with a unique password for each subscribing institution. • Easy export and download of data into a variety of formats, including Microsoft Excel. • Continuously updated to reflect the most recent corporate data releases. • Ratio analysis for easy benchmarking. • English and Arabic, including full definition of terms. • Data quality and coverage of the highest standard.

Research Studies The IBS prepares research studies on a variety of banking and economic topics of relevance to the banking community. This year we have produced four reports:

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Ideas for Enhancing Retail Banking in Kuwait

Real Estate Risk for Kuwaiti Banks

Quantifying the Impact of Basel III Capital Standards on Kuwaiti Banks

Taking Stock of SME Banking in Kuwait

Periodical Publications

Financial Regulation Tracker: First published covering the fourth quarter 2015, the IBS Financial Regulation Tracker offers a convenient resource on regulatory developments across the financial services industry in Kuwait. It helps those keeping track of the current regulations to monitor regulators’ activities on a quarterly basis. It provides a brief description in both English and Arabic of each decision that was issued during the period, with a link to the original source.

Edaat: A bulletin published in Arabic using non specialized language to address topics of interest to the general public. The eighth series of the bulletin published in 2015-2016 covered the International Monetary Fund, real estate investment, risks associated with conventional and Islamic banks, Islamic banking deposits, SME growth, disclosure and transparency, financial inclusion, product life-cycles, Bitcoin, bad debts, banking confidentiality and foreign trade. These and previous bulletins are available on the IBS web page.

Strategic Initiatives Harvard Business School Executive Development Program The IBS worked with Harvard Business School for the seventh year in a row to present an executive education program for banking and finance executives in the GCC region, and from other Middle Eastern countries. This year’s program title was “Leading Strategy Execution in Financial services”

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and it consists of two integrated themes: 'Strategic Management' and 'Leadership'. It was held in Doha, Qatar during January 30th – February 4th, 2016 for six consecutive days. It is aimed at upper middle executives of levels such as department heads. This custom program is a continuation of the first program that was organized in 2009-2010 in Kuwait exclusively for the Kuwaiti banks who are members in the IBS. After the tremendous success of that program, and with Harvard Business School and GCC Banking Institutes showing interest in a GCC level event, the second program was conducted in the training year 2010-2011 in Dubai for the GCC banking and financial sectors. The plan has been to move the venue every year to one of the GCC capitals. The third and fourth programs were held in March 2012 and March 2013 in Doha, Qatar and Muscat, Oman, respectively and the 2014 program was held in Dubai. Then the 2015 program was held in Kuwait City, Kuwait. The programs ran with almost double the participation seen in the first and second programs, the growing number of participants reflect the demand for this high-profile event in Kuwait and the GCC countries. The same main themes, "Strategy" and "Leadership" were presented. These had been selected considering that in today's competitive, turbulent and rapidly changing environments, managers and employees alike look to the top of their organizations for two things: a clear strategy and effective leadership. Business success depends on both. The Harvard Business School Executive Education programs offered in collaboration with the IBS adhere to the School’s high standards thus ensuring that participants and their organizations receive the same quality of learning experience for which the school is so well known. Participants receive a Harvard Business School certificate, verifying that they have completed the program. Both Harvard Business School Executive Education and the IBS are keen on continuing their collaboration in the year 2016-2017. This collaboration remains the first of its kind at the GCC level.

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Strategic Initiatives

Scholarship Program

In line with the commitment to social responsibility of the Central Bank of Kuwait (CBK) and the Kuwaiti Banks to contribute to the development of the State of Kuwait and encourage education, thus contributing to the building of qualified, professional national manpower in the work environment, The Central Bank of Kuwait and Kuwaiti banks are providing annual scholarships for Kuwaiti undergraduates. This initiative of The raised collaboration with Kuwaiti banks offer a Masters' Degree level MBA / MSc scholarships for Kuwaiti graduates to pursue their education in Business, Finance, Accounting and Management from the best universities in the world.

A committee comprising members from the Central Bank of Kuwait, the traditional and Islamic Kuwaiti banks, which they prepared for this program, and The Institute of Banking Studies implement, monitor, and supervise the program, given the long experience of the institute in this area, in addition to the availability of human and logistical its potential to do the work.

The Committee developed regulations for this program, which includes details of the conditions and controls to take advantage of it, Kuwaitis wishing to take advantage of this program may access the IBS website to assess the applicability of its conditions for them.

The scholarship regulations do not include any conditions that oblige the candidates after earning their MBA degree, to work in the banking sector or the Central Bank of Kuwait or any other sector. Thus, the graduates may work in the public or private sectors, as this initiative aims to the development of the national manpower to support the economic and social development in the State of Kuwait.

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Strategic Initiatives

Kuwaiti Graduates Development Program (KGDP) In year 2015-2016, ifs University College, UK, one of the most prestigious international institutions in the field of banking and financial services accredited the certificate of “Kuwaiti Graduates Development Program KGDP”. ifs gives accreditation only to the organizations that will follow the latest training methods and professional techniques. This has had a great impact on assuring the quality of this program. An initiative of the Central Bank of Kuwait, the KGDP was first launched in the training year 2009-2010 with the second, third, fourth and fifth batches conducted in 2010-2011, 2012-2013, 2014-2015 and 2015-2016 respectively. The program aims to further the banking sector’s contribution to the development of young Kuwaiti graduates. It targets recent university graduates to place them in Kuwaiti banks with the training that will prepare them to be high flyers in their respective banks. The practical and rigorous one-year program is carefully designed to lay the foundation for starting a banking career at an officer level, with courses pitched at postgraduate level. The main components are:

In-class training: this comprises a group of integrated core and specialized competencies needed for the banking careers.

E-learning: courses that aim to support the in-class training by providing prerequisites and addressing certain competencies those are not included in the in-class training.

Local field training: this will take place in the Kuwaiti banks at selected intervals to create opportunities to apply what will be learnt during the in-class training.

International field training: this will take place in international banks to provide a global perspective and exposure to international banking practices.

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The IBS will launch the sixth batch in the coming year 2016-2017, which will be announced in the local newspapers at that time.

Strategic Initiatives Cooperation with Management Centre Europe MCE The Institute of Banking Studies cooperates with the Management Centre Europe (MCE) to offer a 5 day Mini MBA training program for the Banking sector. The Programs are held twice a year, in London England, with participants from across Kuwait.

The key objective of this program is to support the participants in implementing strategies and transformation.

The program is managed and administered by the IBS and presented in conjunction with our partner Management Centre Europe (MCE). MCE helps individual managers and management teams to build functional and cross-functional capabilities. These capabilities are necessary to implement their companies’ and organizations’ strategies and to sustain performance improvement. MCE, based in Brussels, is the largest provider of talent development programs for international companies throughout Europe, Russia and the Middle East. It is affiliated with the American Management Association International, (AMA), a global organization founded in 1921.

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Training Program in collaboration with the Manpower & Government Restructuring Program MGRP – Training Year 2015/2016 The IBS for the second year provided a group of university graduates with a training program to prepare them to work in the banking and financial sector, with a guarantee to employ them all- 100% - . The program was held in collaboration with the Manpower & Government Restructuring Program. Participants met the pre-requirements of employment in both private and government sectors, as the core nature of the program targeted capabilities that satisfy the needs of starting employment in all areas of work at private and government sectors. The duration of the training program was 211 hours, structured as modules for core banking and finance foundation competencies and courses in English language required at work and professional work values. Most of those graduates were employed at the private sector, specifically local Kuwaiti banks.

Collaboration with the Union of Arab Banks

The IBS has been conducting specialized workshops in collaboration with the Union of Arab Banks. A specialized banking workshop entitled: “Capital Planning & Risk Governance”, in October, 2015, highlighted a number of essential components of risk governance including risk culture and risk appetite as well as the current work of regulators and banks in strengthening the implantation of capital planning process including ICAAP and other techniques. In February 2016, also the Institute conducted a Forum in cooperation with the Union of Arab Banks and in collaboration with the Federal Reserve System – Washington DC entitled: “Banking Regulatory and Supervisory

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Challenges”. This Forum shed the light on the numerous regulatory and supervisory challenges facing banks, especially post financial crisis, and provides an assessment of De-risking, its implementation and the impact of that on the banking and financial sectors, non-financial sector, and customers in general. The Forum also discussed the effective compliance program and the regulator’s focus, and presented by experts from different countries.

Strategic Initiatives Cooperation with Kuwait Foundation for Advancement of Science (KFAS) In 2012-2013, the IBS and KFAS signed a Memorandum of Understanding expanding their cooperation to a new level making their services available for a wider spectrum of companies in all sectors in the State of Kuwait. Through cooperating in offering state of the art training, development and joint studies the two organizations seek to better achieve their objectives of supporting the development of the national workforce and Kuwaitization of the private sector with the aim to contribute to the development of various economic sectors and the Kuwaiti economy as a whole. In the last 3 years IBS conducted many programs in collaboration with KFAS; these programs were attended by participants from different sectors. The MOU covers cooperation in offering programs, courses, symposia and conferences for companies through the professional unions representing them in sectors such as banking, finance, real estate, insurance, Industrial and other sectors. Also, the cooperation enables participation in Islamic Banking and Finance training events for interested companies from all sectors. The cooperation provides Kuwaiti companies with increased funding for the training and development activities they need to grow their national workforce. KFAS will fund programs and courses offered by the IBS for

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eligible companies through a specific mechanism set by the professional unions representing each economic sector.

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Facilities The IBS occupies an 11-storey building, with the basement dedicated for utilities, a ground floor and 9 functional floors. The building currently houses 13 classrooms/training halls, 4 grand lecture halls and 2 computer labs, with a total capacity of 490 students at one point in time. The IBS facilities also include a specialized library, Internet Wi-Fi service, 2 cafeterias and prayer halls. The IBS building is surrounded by 3 major parking buildings; Wataniya, Masseel and Al Safat, with a capacity of approximately 2000 lots and an adjacent open parking area with 170 covered lots.

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Faculty The Institute employs a core team of full time faculty of professional bankers and trainers, whose role is to lead the process of research for cutting edge ideas and events, need identification, program and course development, annual planning, sourcing faculty and assessment of learning effectiveness. At the same time, The IBS has developed a large and growing network of part-time and visiting faculty from prominent banks, professional organizations and renowned universities. With this approach, the Institute ensures the currency of faculty delivering its courses.