VKF_FRAE_2017

57 VakıfBank Annual Report 2017 VakıfBank broke a new ground by establishing a Local Government Banking Marketing Department. In a first for the sector, VakıfBank has developed a new banking perspective focusing on municipalities, their subsidiaries and commercial enterprises, and created a department at the senior level, which will be solely dedicated to serve this portfolio. The department started operations in August 2017. In consequence of its deep-rooted experience in the field of Local Government Banking, and the synergy created by this new organizational structure, the Bank realized alternative financing facilities, products and services, and other innovative initiatives for local governments, VakıfBank took significant steps to facilitate local government’s access to financial products and services, in the last quarter of 2017. VakıfBank has been providing the best service to local governments for many years with its wide product range and widespread branch network. The Bank will further increase the quality of this service within the new department of Local Government Banking. Local Government Banking Department started to conduct regular visits to local governments across Turkey, analyze their problems and demands on site, and develop rapid and effective solutions. This customized service perspective has quickly started bearing fruit. »» PERFORMANCE IN 2017 With the synergy brought about by this new organizational structure, the Bank achieved a 40.59% rise in cash loans and a 17.34% increase in non-cash loans to local governments in 2017. The collaboration with local governments was not limited to cash and non-cash financial support; the Bank also introduced local governments to its technological products and services as a result of intensive visits to municipalities across Turkey, in line with its perspective of providing services to all local governments. Municipalities use VakıfBank’s technological solutions in their products and services offered to citizens, thereby increasing the quality of these services. VakıfBank’s cash management products and services in fields such as collection and payment make such processes more practical service for both local governments and the citizens they serve. VakıfBank produces particular solutions to meet the needs of local governments, such as routine financing, cash management and project financing. »» LOAN ALLOCATION PROCESSES TAILORED FOR LOCAL GOVERNMENTS In line with its new business model, VakıfBank facilitates local governments’ to access financing by delivering special consultancy services to municipalities, which must comply with certain borrowing regulations and procedures that differ from those concerning commercial enterprises. A special credit allocation department was set for credit limit allocations to local administrations, and a special scoring system was created for municipalities and their subsidiaries and affiliates to allow quick and measurable decisions. Funding Sources procured in international markets were offered to local governments. VakıfBank provides local governments the low-cost funding sources procured in international markets for their project financing. VakıfBank is a successful business partner of the EBRD-funded Turkey Sustainable Energy Finance Program which was initiated LOCAL GOVERNMENT BANKING VakıfBank has been providing the best service to local governments for many years with its wide product range and widespread branch network. The Bank will further improve the quality of this service with the newly established Local Government Banking department.