1

DEDICATION

To My almighty God My beloved Parents To my beloved, Sisters and Brothers To all my family members, relatives and Friends. May God bless you all!!! I dedicate this report.

ACKNOWLEDGEMENT

2 The completion of this work would not have been possible without various contribution made by many people. For this reason, I appreciate the assistance provided to me during the internship and would like to express my emotions of gratitude to whoever participated towards the completion and success of this internship. I offer great thanks to Almighty God who gave me all efforts invested in carrying out my practical training and glory be to him as I am so pleased to the kind of institution that he provide for me to work in as an internship occasion. My sincere thanks also go to my family and friends who provided me with strength, moral support, guidance and financial support for the achievement of this internship. Thank gratitude to Umutara Polytechnic University as a whole Faculty of Commerce and Applied Economics in particular which organized this practical training, allowing us to acquire such an important and useful experience by putting the theoretical academic knowledge into practical realities. I thank the branch Manager of BPR Kimironko who allowed me to carry out my internship in his institution. My thanks; go generally to BPR Kimironko staffs, who have been very kind, attentive and competent. Finally, I extend my thanks to all my colleagues. May God bless you.

MUGWANEZA Marie Grce

3 PREFACE This internship carried out at Banque Populaire du Rwanda LTD , Kimironko Branch lasted for a period of four weeks from 15th March, 2012 to 15th April 2012 acted as a tool to correspond theoretical courses learnt in a class with real practice on the ground to identify the extent to which theories learnt from lecturers are applied. This internship was carried out from several departments that constitutes Banque Populaire du Rwanda LTD , Kimironko Branch such as Customer care department, Commercial department (Credit and Recovery), Tellers Service Accounting service, and internal audit. It is from these services that I managed to make known my self to operations carried out. This internship report describes clearly the background, mission, vision, objectives, location, and banking procedures of BPR LTD particularly Kimironko Branch. Such information can serve as a source of information to any individual who may need information concerning BPR LTD as a financial institution. Although carrying out this training, scientific methods to collect truthful data about the institution were employed. These include participatory approach, observation and documentation. Therefore recommendations and conclusions were drawn basing on the above scientific methods of data collection that have been used. Therefore, this report is made up of three chapters: Chapter one comprises of the general introduction, objectives, methods of data collection and time calendar. Chapter two presents the description of the institution, its historical background, mission, its organization and structure. Chapter three contains activities carried out, skills gained and challenges encountered. Finally this report is enclosed by a general conclusion and recommendations.

LIST OF ABBREVIATIONS
BAA: Branch Administrator Assistant BBM: Bachelors degree in Business Management BM: Branch Manager BNR: Banque National du Rwanda BP: Banque Populaire BPR: Banque Populaire du Rwanda KB: Kimironko Branch LTD: Limited Company UBPR: Union des Banques Populaire du Rwanda UPU : Umutara Polytechnic University VOSTRO: Their account NOSTRO: Our account www p (VCC&RCC) (BAA) money transfer control (MTCN)

TABLE OF CONTENTS ACKNOWLEDGEMENT.........................................................................................................1 PREFACE................................................................................................................................3 LIST OF ABBREVIATIONS.....................................................................................................4 CHAPTER I. INTRODUCTION..............................................................................................7 1.1. Objectives of internship....................................................................................................7 1.1.1 General objective............................................................................................................7 1.1.2 Specific objectives...........................................................................................................7 1.2. Significance of training....................................................................................................8 1.3. Methodology.....................................................................................................................8 1.3.1. Interviews.......................................................................................................................8 1.3.2. Observation....................................................................................................................8 1.3.3 Participation...................................................................................................................9 1.3.4. Documentation...............................................................................................................9 1.4. Time Calendar..................................................................................................................9 1.5. Problems encountered in the training..............................................................................9 CHAPTER II: PRESENTATION OF Banque Populaire du Rwanda LTD..........................10 2.0. Introduction ...................................................................................................................10 2.2. Shareholders...................................................................................................................11 2.3. Mission and vision of Banque Populaire du Rwanda LTD...........................................12 2.3.1 Mission..........................................................................................................................12 2.3.2. Vision...........................................................................................................................12 2.4. Logo of Banque Populaire du Rwanda .........................................................................12 2.5. Objectives of Banque Populaire du Rwanda LTD.........................................................13 2.7. Organisation Structure of BPR LTD Kimironko Branch ...........................................14 2.8. Branch Organization Structure of Kimironko BPR LTD...............................................15 2.9. BRANCH MANAGER.....................................................................................................16

6 2.9.1 His mission....................................................................................................................16 2.9.2. Internal Audit Services................................................................................................16 2.9.3. The branch Administrative Assistant (BAA)...............................................................17 2.9.4. The Accounting............................................................................................................18 2.9.5. Credit department........................................................................................................19 2.9.6. Branch head of risk......................................................................................................19 2.9.6.1. The mission of head of risk.......................................................................................19 2.9.7. Teller services..............................................................................................................21 2.9.8. Customer care Services...............................................................................................21 CHAPTER 3: PERSONAL AND PROFESSIONAL EXPERIENCE ACQUIRED................21 3.1. Reception and Customer Care Service...........................................................................21 3.2. Teller services.................................................................................................................22 3.2.1. Western Union............................................................................................................22 3 .2.2. RCC and VCC operations...........................................................................................23 Table 3.3. .Credit process.....................................................................................................24 3.3.1 Branch Decision Credit Committee .............................................................................25 4.3. Compensation/ Clearing services....................................................................................27 4.5. Internal auditing service..................................................................................................28 The Internal Audit service at KIMIRONKO Branch has got 3 auditors of whom one is the chief auditor............................................................................................................................28 The principle role of the auditors is to check whether the accounting operations made by the branch are done according to the rules and regulations put forward to guide the profitability of the bank and giving advices for amelioration of the branch.................................................28 3.2. EXPERIENCE GAINED DURING MY INTERNSHIP AND PROBLEMS ..................28 ENCOUNTERED............................................................................................................28 3.2.1. Experience Gained.......................................................................................................28 3.2.1.1 Theoretical application.............................................................................................28 3.2.1.2. Time management.....................................................................................................29 3.2.1.3. Interaction with employees and other internees....................................................29 3.2.1.4. Performance.............................................................................................................29 3.2.1.6. Methods of data collection.......................................................................................29 1. General Conclusion............................................................................................................30 2. Suggestions ........................................................................................................................30 BIBLIOGRAPHY...................................................................................................................31

7 CHAPTER I. INTRODUCTION 1.0. General introduction Internship is an obligatory practical course that every finalist student in Umutara Polytechnic University (UPU) every Faculty should carry out in order to be awarded Bachelors Degree in Commerce and Applied Economics. Students at UPU like any other academic institutions study theoretical courses with out knowing how they are applied practically. This training is intended to go with theoretical principles learnt in a class with what is really applied at the field. Thus, it is of the great importance for the student because it introduces a picture to the working environment by preparing him to practically involve himself for the future employment. The internee makes an assessment on the organization under study and a final report is prepared and submitted to the University for Evaluation. The practical training was carried out in BPR LTD Kimironko Branch for a period of four weeks from 15th March 2012 to 15th April 2012. 1.1. Objectives of internship 1.1.1 General objective The main objective of this internship is to practice the theoretical concepts learnt from Lectures in the real work environment. It is also aimed at making students gain professional experience in private or public sector. By trying to update and mix those concepts in day-to-day operations of the organizations. 1.1.2 Specific objectives To improve proficiency in computer skills To be personal and professional developed To sharp ability in communication skills, initiative and independence

8 To gain interpersonal skills that is essential in socio-economic decision making.

1.2. Significance of training This training is immeasurable importance, it enable the beginner to gain knowledge from the existing field that is vital for homework of future working environment. It is the basic course for the fulfillment of the academic requirement to be awarded bachelors degree in Commerce and Applied Economics by Umutara Polytechnic University. It adds to the existing body of knowledge which acts as a guide for future research practices as well as improving the functioning of the organization where the training was conducted. 1.3. Methodology Methodology refers to the methods and techniques used by the internee to obtain the dependable data required. For compiling this report and make it a success, both primary and secondary data sources were employed. With primary data, sources were generally; interview, observation, Participation. Whereas secondary data were got from documentations LTD Kimironko Branch. 1.3.1. Interviews The trainee carried out personal interviews with different employees like usual workers; heads of departments, administrators and answers provided were noted down and guided as firsthand information trusted to be used. 1.3.2. Observation This method helped the trainee to get the first hand information on the employees reaction to different practices in the office, by observing and analyzing the actions. The trainee has to observe how things were done. Some of the information gathered through this technique included: Employees commitment and arrangement in their work. of BPR

9 Relationship between employees and their superiors including their social interactions and different approaches used among them.

1.3.3 Participation The trainee practically participated in the customer care; we are opening the account of people where wont to save money. Computation of credit requirements like making contracts to be filled by the credit seekers in the commercial department, other relevant bank services. 1.3.4. Documentation The internee while using secondary data, consulted available few documents like BPR LTD credit policy released on 15thJanuary 2010, auditing Manual and other documents of which deserved to provide necessary information and visiting the website of BPR LTD 1.4. Time Calendar The internee was welcomed by the Branch administrator assistant (B.A.A) and allowed him to carry out practical training in the bank. The training started from 15th March, 2012 to 15th April, 2012. The trainee used up his fist week in the customer care department (Reception.) In the second week the internee practically participated in the commercial, third week in credit department and in recovery department, fourth week in accounting department and in auditing department. 1.5. Problems encountered in the training Most of the intended objectives of this practical training were successfully realized. However, some of obstacles during this period were faced as mentioned below; Time accorded to carry out internship by UPU is too short to exhaust all the activities that should be accomplished in order to have enough knowledge on such financial institution that has several activities it functions. For example the trainee did not get

10 opportunity to visit BNR on the field and observe how compensation is done. Thus it became tiresome to complete scope of the study. The employees in almost all branch departments seem to be much busy most of the time and they could not be available to provide information and guidance every time required by the internee. Insufficient funds to accomplish this training . Most of the employees can show what they are doing but they can not allow to in the software used in the Bank, because each employee would have his own menu to work in, so they are afraid of giving the internee working in their, because if he makes any small mistake it will come on their head, is in that case the internee who is going to experience still. CHAPTER II: PRESENTATION OF Banque Populaire du Rwanda LTD 2.0. Introduction BPR as other banks, according to Pierre Georges BRAND is defined ( Banque Populaire du Rwanda LTD) as a group of individuals who come together to form a cooperative to provide security for their savings and redistribute in form of loans to the members of that group for their professional activities or for ameliorating . 2.1. Historical Background 2.1.1. Evolution of Banque Populaire Du Rwanda Ltd (BPR LTD) In the year 1968, Rwandan government thought of establishing Banque Populaire, but it could not afford itself. It consideration necessary to look for friendly states from overseas that had experts to provide a help. These states included French, Canada, and Swaziland. In the year 1971, the government of Swaziland sent experts to carry out a pre-study and examine whether the system of Banque Populaire du Rwanda can be successful.

11 The study tested favorable and on 7th December 1972 a treaty between two parties Rwanda and Swaziland concerning establishment of credit and savings cooperatives were signed . It is on this note that the first Banque Populaire was installed on 4th August 1975 at NKAMBA in collective farm KABARONDO in KIBUNGO which is now EASTERN PROVINCE. In the year 1986, the umbrella of these banks (Union des Banque Populaire du Rwanda LTD (UBPR) was formed to bring together all those cooperative Banks that had organizational characteristics of savings and credit offering. With this, a union of those cooperative Banks were formed in 1988 under the law No 31/1988 of 12 October 1988 governing organization of cooperative societies of the decree-law no 7/1981 on the 28th April 1981regurating financial institutions. These cooperative Banks worked independently, they did not have head offices .Only the Umbrella had its head quarters in Kigali City and it would go with the entire system while providing proper administration, logistics, and technical support for the prosperity of other branches, the primary target was to expand services to rural areas regarding the regulations put forward by National bank of Rwanda guiding financial institutions. The evolution of this Banque Populaire continued as time goes on. In January 2008 these Banque Populaire that had cooperatives regulations, were transformed and became commercial banks. Over 140 independent units that had limited powers to exercise banking services were now legally recognized to operate as other financial institutions in Rwanda. 2.2. Shareholders Apart from local citizens, the Holland bank (RABOBANK NEDERLAND) had a third of the shares in the Banque Populaire by June 2008 after the transformation from UBPR to commercial Banks. Rabobank position in its financial investment and technical support strengthened the success for this financial institution

12 2.3. Mission and vision of Banque Populaire du Rwanda LTD 2.3.1 Mission Providing agreeable financial services in both rural and urban areas by maintaining a sustainable financial support based on cooperatives characteristics especially to farmers, micro, small and medium enterprises, private individuals and agribusiness enterprises. 2.3.2. Vision To become a solution bank in Rwanda offering quick and better quality services 2.4. Logo of Banque Populaire du Rwanda

The Banque Populaire has a logo that comprises: a key, three letters (BPR) and sorghum within the circle. The sorghum symbolizes prosperity The key which opens and closes is a sign of Security The three letters is an abbreviation of Banque Populaire du Rwanda LTD The circle symbolizes solidarity and joining together. The Banque Populaire du Rwanda LTD is permitted to simultaneous role; It provides peoples wealth with security through savings and withdraw Gives access to loan seekers through offering credit services.

13 2.5. Objectives of Banque Populaire du Rwanda LTD The Banque Populaire du Rwanda LTD has the following objectives: Creating a suitable environment that may attract clients to invest their funds according to the conditions determined by the policy and regulations of savings; To improve the spirit of saving among Rwandans this is the sign of the better future standard of income; Provide loans to customers to help them meet their financial, economic and social needs, these loans are refunded according to the terms of the loan contract that are defined by the policy and regulations of loans; Encourage the spirit of initiatives, local labor by practical usage of savings and credit services offered by the Banque Populaire du Rwanda LTD The need to fight against the extensive of speculations and depreciations in credit and savings domain. 2.6. Background of BPR LTD KIMIRONKO Branch The BPR LTD KIMIRONKO Branch is located in KIMIRONKO Sector, GASABO District in Kigali City. It was established on 3rd April, 1990 under the code of law 118. It is noted that, after six month of its establishment, this Branch started offering credit to its customers on mortgages, commerce, small and medium enterprises like hand crafts and others. However due to the occurrence of Genocide against TUTSI which took place in 1994 many professionals familiar with banking system were killed, others went into exile, banking equipments were damaged until 12th, April 1996 when it reopened its doors. During this reopening of the branch, the numbers of customers was every day increasing and the bank used manual system that could not meet their needs. This led to the computerization of the banking system to increase rapid provision of its services. It is from this establishment of technology in the Banque Populaire du Rwanda LTD prosperity in performing bank operations. The BPR LTD KIMIRONKO Branch changed to be a commercial bank with amount of capital totaling to sixteen billions Rwandan francs. KIMIRONKO that facilitated its

14 2.7. Organisation Structure of BPR LTD Kimironko Branch The BPR LTD KIMIRONKO Branch has three Sub-branches and two outlets. These sub branches include KICUKIRO, NDERA and KABUGA, and outlets are REMERA, SONATUBE and MASAKA.
Figure 1 : BRANCH ORGANIZATION CHAR

15 2.8. Branch Organization Structure of Kimironko BPR LTD

B ra n c h M ag er

In t e r n a l C o n tro l
B ra n c h A d m in is t r a tiv e A s s is t a n t

B r a n c h A u d it H e a d B r a n c h in te r n a l A u d ito r

IT S u p p o rt **
E m p lo y e e O p s & H e lp d e s k

F a c ility M a n a g e m e n t E m p lo y e e

C r e d it r a n c h R is k H e a d

F in a n c e C h ie f A c c o u n ta n t

C ash C o m m e r c ia l C o u n t e r S u b B ranc h C o m m e r c ia l H e aHd e a d C a s h ie r C a s h ie r

R ec o ve ry C r e d it R e c o v e r y O f f ic eCr r e d it O f f ic e r

A c c o u n t in g & R e p o r t in g A c c o u n ta n t

Sub B ranc h C o n tr o l A c c o u n ta n t

C u s to m e r C o m m e r c ia l C a re S e r v ic e C u s to m e r C a r e C o m m e r c ia l O f f ic e r O f f ic e r

Source: BPR LTD Kimironko Branch

16 2.9. BRANCH MANAGER 2.9.1 His mission The mission of the Branch manager is to make positive that the productivity of the bank keeps on increasing. Specific responsibilities To produce a well designed plan that facilitates in management and supervision of branch activities and that of the sub-branches plus outlets correspondingly. To prepare and produce reports obligatory on time. Organize meetings of branch employees, Sub Branch Managers, and management committees. Analyze the monthly financial position of the branch, sub-branches, and adopt required measures to ameliorate the situation. Organize at least two commercial events for customers each year To put in action recommendations as it has been requested in different reports, 2.9.2. Internal Audit Services Leader of the internal Audit The leader audit replaces the branch manager in his absence, but his principle responsibility is to coordinate all the activities of the audit of the branch and sub branches for the protection and safeguard of the banks assets, respect of measures and regulations that should be followed whereas doing bank operations. For the proper assurance of the independence of the chief internal audit unit, this post is directly subjected to the inside audit of the headquarters, but the branch manager continues to be responsible for the in general management of the branch, and he takes responsibility of the administrative managements of the branch internal auditors particularly those concerning the branch administrative records of the personnel, social and the discipline.

17 Specific Responsibilities To verify independently whether all activities done by the bank are conducted in accordance to the laws and regulations, Encourages integrity and effectives in the internal control system of the branch and sub-branches as to minimize errors, frauds and losses; Prepare and produce a monthly summary of audit reports of the branch and subbranches and submit them to headquarter; Prepare and produce a monthly summary of audit reports of the branch and subbranches and submit them to headquarter; He advises the branch by suggesting possible solutions to the recognized problems; -To analyze financial audit by analyzing all annual accounts for the branch and subbranches; To conduct the operational audit: on top of controlling financial statement and accounting data, the auditing goes ahead and analyze the conformity of all activities to the objectivities fixed, control the effectiveness of controls put in place, control all procedures as to improve the system and evaluate the performance of the bank; Discuss with employees on the oral and written reports and performance, verify whether all recommendations given in reports are being practical; To verify whether audit files and reports of the branch and sub-branches are classified in a good way; To provide necessary materials and means required by internal auditors of sub-branches to accomplish tasks permitted to them; To provide necessary information to the parties dependable in case of an immediate intervention; Work hand in hand with the branch manager regarding taking to court of justice those who are responsible for fraud. 2.9.3. The branch Administrative Assistant (BAA) He is responsible for the human resource management,

18 He is in charge of providing all necessary materials to the employees for horizontal He follows up every day presence of the employees at work. He signs letters on condition that holidays for the employees.

organization of the bank.

2.9.4. The Accounting The accounting department of KIMIRONKO branch has: Chief Accountant Two assistant accountant officers Two clearing agents in charge of compensation. Chief accountant of the branch Mission of the Chief Accountant Coordinate the accounting unit of the branch and sub-branches and his responsibility is to consolidate branchs financial statements. Specific responsibilities Make a daily verification of the branch accountants works; Make a daily verification and classification of the transactions in the journal; Follow-up of the daily transactions of the profit and loss account; Prepare and produce a weekly verified and consolidated financial statement from all branch and sub-branches; To Supervise and follow-up the corrections of suspense on internal accounts; Organize employees and enhance the spirit of team work; Monthly verification of the branch accounts; Control and verify the branchs fixed assets and monthly calculation of depreciation; Verification and authorization of the branchs accounting transactions stated in the system.

19 Weekly supervision of financial documents from the head quarter, sub-branches and other commercial banks. Keep a correct filing system of all accounting records; To record deposits and withdraws of the branch and sub branches (VCC&RCC) on the same day as they directly occur. Prepare and produce a report about the quality of financial statements from all subbranches. To execute new departmental procedures and policy from the Headquarter if requested. 2.9.5. Credit department The credit department of KIMIRONKO branch has Head of Risk officer Four commercial officers Three credit analyst officers Four recovery officers. 2.9.6. Branch head of risk 2.9.6.1. The mission of head of risk He coordinates and supervises all management activities and risks executed by the credit officers and recovery officers as to make a branch report with those of sub-branches and maintain the equilibrium between the return and risk of bank. Specific responsibilities Analyse contracts of credit seekers and provide decision according or rejecting their loan request. Make analytical credit assessments as part of Branch credit committee and act as chairman of this committee in case of absence of the branch Manager. Support by training the commercial officers in credit related issues,

20 Coordinate the performance of credit officers and the recovery officers Table 1 Types of loans offered by BPR LTD KIMIRONKO Branch. Libell English A. Retail Interest rates personal loans Construction loan loan Investment Penalty on over limit B. Short term business loans Commissions personal loans Commissions (Corporate and business loans) Rate/Amount 17% to 19% 17% to 19% 17% to 19% Plus 2% sur taux appliqu

Overdraft / line of 19 21% credit Invoice discount 19 21% Handling fee Management fee Handling fee Management fee 5,000Frw 1% avec min 10,000 max 500 000frw 30 000Frw 1% minimum 50,000Frw maximum 1,000,000frw

- usual clients with CBank guarantee 100% cash collateral 2% per year (bid & performance bond) - Corporate clients Without cash 4% per year collateral Handling fee Management fee IV. DEPOSITS 5 000 RWF 25 000 Rwf

Term deposits Cfr grille dpot terme GWIZA Savings Cfr grille GWIZA account HIRWA Savings Cfr grille HIRWA account

21 2.9.7. Teller services KIMIRONKO branch has seven tellers of which one is the principal teller. The principal teller is responsible for:
-

Managing the safe customer of the Cash, He signs documents required in collaboration with branch manager. Participate in inventory tasks where necessary, Provide necessary information to support the auditor in daily cash control. Execute cheques transactions Execute transactions of the western union.

2.9.8. Customer care Services The customer care has the following duties; To receive and orient all customers and other persons who need branch information. Receiving all written documents of all kinds submitted to the branch manager Receiving customers who come for account opening. Preparing and providing new files and passbooks for customers.

CHAPTER 3: PERSONAL AND PROFESSIONAL EXPERIENCE ACQUIRED This chapter describes all activities from different departments in which the internee practically participated in during KIMIRONKO Branch. 3.1. Reception and Customer Care Service. This service provide a firsthand information about the bank operations and its benefits to the customers who want to have a clear picture on this financial institution. It receives and orients inquiries of the customers to the concerned departments, it also provides all necessary information required by existing members on the status of their accounts. his internship period in Banque Populaire du Rwanda S.A

22 It is where all persons who want to become members of the bank get forms and fill them in the light of having various accounts in the bank. The internee observed and participated in the procedures required in opening accounts for new members, explaining to clients about the banks products as he was trained by the employees on all services of the bank and responding to customers inquiry with the help of the responsible person. The internee was in charge of such service therefore, had the duties of providing an adequate and sufficient information regarding present and future perspective of bank to the customers or members. Requirements to open an account in BPR Kimironko include the following; - To be an adult (being mature) or emancipated minor. -Two photocopies of Identity card or a Passport. -Two passport photos - To sign on the file at a legible place reserved for him. In case of loosing a passbook, the looser has to report to the near police station who provides a letter confirming the incident and directly pays 5000 Rwandan francs to the bank to be given anew one. In exhaustion of the passbook, a customer pays 1700 Rwandan Francs. It is clearly observed by the internee that all this amount of money is not paid directly in the customer care office where registration is done rather the payment is made to the teller.

3.2. Teller services

Teller service includes two principal aspects; Depositing and withdrawing of cash. Kimironko Branch has seven tellers of which one is the Head teller. -While withdrawing, the cashier deducts account of the client by debiting amount of withdrawn by him. -On depositing cash, the cashier increases clients account with amount deposited by him. money

3.2.1. Western Union

23 It is electronical and technological system in which one can send or receive money from any country as long as such state is registered for western union. The only information needed is a dress of the sender and receiver with money transfer control (MTCN) which is given by the western union agent at the time of sending and requesting of which is requested at the time of receiving money. 3 .2.2. RCC and VCC operations Are the operations known in French (RCC Retrait la Caisse Centrale) and (VCC Versement la Caisse Centrale) in which by Branch Managers authorization the bank can deposit or withdraw the money to BNR in case of shortage or excess liquidity at the branch. Credit department The credit department of KIMIRONKO Branch is under responsibility of Branch Risk Head. This service has five qualified Persons from whom one is Branch Head of Risk. Credit department is divided into two units; Credit Unit: It is entitled to draft proposals, making critical analysis, and monitoring of loan utilisation acquired by the clients. Recovery Unit: It is responsible for the recovery of bad debts The Branch Risk Head perform the following tasks; He approves and makes credit assessment for head office credit committee drawn by credit officers. To give a decision on the loan demanded by according or rejecting. To monitor the performance of credit officers and the recovery officers He acts as a chairperson of credit committee in case of absence of the branch Manager. He is responsible for offering assistance, support and train the commercial officers in credit related issues by increasing their knowledge. He controls whether every credit officer is specialized in relevant field.

The Credit Officers are entitled to the following duties;

24 Critically analyse credit requirements drawn by commercial officers. To check whether a proposed loan by the commercial officers constitutes the risk return balance that BPR requires. Review credit assessments as part of branch credit committee To give a clear recommendation for review by the branch or Head office credit committee. Draw credit contracts in accordance with approvals of credit committee. Archive loan files and determine completeness of loan files (before disbursement). To comply with rules and regulations of BNR concerning financial institutions. To make credit reports to be used internally or externally. To perform other tasks as required by the institutional management within the framework of the responsibility. Theo recovery Officers are responsible for the following duties. To make operations for the client who want to recover the loan before they due. T o make control of the quality of the credit portfolio. .To make consecutively procedures required for loan recovery. To asses, communicate and coordinate activities required from external parties (such as legal services). Train commercial officers to identify high risk clients. Preparing and produce recovery and other related reports to be used internally or externally. . Table 3.3. .Credit process To have an interview with the client and this should be preceded by an application letter demanding for a loan. Visit the customer Write proposal Asses critically the proposal. To take decision on a loan applied for.

25 To make and produce credit letter. Obtain collateral To sign loan contract Approve disbursement schedule Disbursement Make a monitoring of client and his loan by reviewing the credit application. The exercising of recovery.

3.3.1 Branch Decision Credit Committee

Table 1KIMIRONKO Branch credit Committee constitutes

the following individuals;

Branch Manager Branch Risk Head Credit Officer Recovery Officers

President Risk head A member A member

Table 2 Types of loans offered

by BPR KIMIRONKO Branch.

II.LOANS
Libell A. Retail Interest rates Prts personnel Credit construction Credit dinvestissement Pnalit sur dpassement Credit de caisse / dcouvert B. Short term business loans Crdit descompte facture personal loans Construction loan Investmentnt loan Penality on over limit French English Rate/Amount

17% to 19% 17% to 19% 17% to 19%

Plus 2% sur taux appliqu

Overdraft / line of credit 19 21% Invoice discount 19 21%

26

Commissions loans

personal

Frais douverture de dossier Frais de gestion de crdit Frais douverture du dossier

Handling fee Management fee Handling fee Management fee - usual clients with 100% cash collateral - Corporate clients Without cash collateral Handling fee Management fee

5,000Frw
1% avec min max 500 000frw 30 000Frw 1% minimum 50,000Frw maximum 1,000,000frw 2% per year 10,000

Commissions (Corporate business loans)

and

Frais de gestion de crdit

C. Bank guarantee Provisionn 100% (bid & performance bond) Non provisionn Frais douverture du dossier Frais de gestion de crdit

4% per year 5 000 RWF 25 000 Rwf

IV. DEPOSITS

Dpot terme Compte epergne - GWIZA Compte epergne - HIRWA

Term deposits

Cfr grille dpot terme

GWIZA Savings account Cfr grille GWIZA HIRWA Savings account Cfr grille HIRWA

SOURCE; BPR TARIFF (proposal)- April 2010

*Any preferential rate has to be approved by head office credit committee NB: Prices are exclusive of any taxes.

Accounting services The accounting department of KIMIRONKO branch has five accountants and these include of whom one is chief accountant. It uses accounting software called GLOBUS. The accountants of KIMIRONKO Branch perform the following tasks: - Daily recording of accounting entries. - Making classification of accounting documents relating to treated transactions.

27 - Recording payrolls of those whose salaries pass via KIMIRONKO Branch. - Certification of the cheques - Monthly preparing and calculating accounting entries concerning depreciation. - Print out all bank statements after reconciliation - Monthly preparing and making accounting entries concerning provisions for bad and doubtful debts. - Daily making of compensation records. - Preparing and producing well organized monthly financial statements on time, The accounting service by KIMIRONKO Branch faces the following challenges; Daily increasing number of customers compared to the capacity of the Branch lead to the overworking of the accountants. The internee was practically involved in accounting service while classifying transactions mainly analyzing and recording them with the help of the branch accountant who consolidated the theoretical and practical knowledge. 4.3. Compensation/ Clearing services It refers to a physical exchange of different values in monetary terms like money transfer orders and check, among various commercial banks where the compensation process takes place at BNR every day at 10:00 to 3:00 excluding weekends. The compensation officer at the Branch has the following tasks: - Receives and verifies all documents to be presented at BNR during compensation period. - Make an analysis of the reliability for documents to be presented in BNR. - To make a follow up of the exchange before and during compensation

28 The internee was told of the gradual process for this compensation however he could not make any headway due to the fact that bank employees are the only people allowed to carry out that activity.

4.5. Internal auditing service. The Internal Audit service at KIMIRONKO Branch has got 3 auditors of whom one is the chief auditor. The principle role of the auditors is to check whether the accounting operations made by the branch are done according to the rules and regulations put forward to guide the profitability of the bank and giving advices for amelioration of the branch. To control if there is fraud and error and give advice to the branch employees on how they can promote their performance. The internee observed and participated in all audit procedures, where he saw auditing manual of BPR SA, and the minimum requirements each department should posses. However the internee did not get enough time to practically exhaust all the practical work under audit due to the scope of internship calendar. 3.2. EXPERIENCE GAINED DURING MY INTERNSHIP AND PROBLEMS ENCOUNTERED 3.2.1. Experience Gained The experience I leant during my internship was important in my development skills. Experience was realized in the following areas: 3.2.1.1 Theoretical application I put into practice the theoretical knowledge leant in class to the related computer skills. Differentiated skills were leant from different sections where I participated and other skills that

29 I had not leant in class like Lotus Notes and Citrix Applications and how to configure network printers. 3.2.1.2. Time management I leant to be punctual as I was supposed to reach at the office premises at the time scheduled before noon and after noon (7:30am- 4:30pm), from Monday to Friday. 3.2.1.3. Interaction with employees and other internees This gave me an opportunity to get experience in areas of computer operations, work relationship, and work conflict resolution. This was vital in preparing me for the future work environment. 3.2.1.4. Performance As the environment was friendly and flexible, I performed all the work assigned to me. My workmate helped cope with all challenges at work and he was always there for me whenever I was in need of any form of assistance, mainly when it arrives to go to field I could stay in touch with him and tried to be independent until the time get over so he come and pick me from there.

3.2.1.5. Self-Evaluation
The internship conducted was an opportunity for me to analyze myself how well could I behave responsible within a professional environment where everyone knows what to do and what to not do. It has also raised myself confidence and discovering my internal potentials since I didnt know that I knew and I could remind myself some of concepts learned some days back because whatever I encountered at work was not completely new to me , I knew them in theory ,the emphasis was to put them in practice. 3.2.1.6. Methods of data collection The period of training was essential in equipping knowledge of using data collection methods. The methods used are interview, observation, participation and documentary methods.

30

GENERAL CONCLUSION AND SUGGESTIONS 1. General Conclusion During this training, I acquired a lot of knowledge through how theoretical principles are put in practice and this was the General objective for this practical work. During my internship I was often forced to use my knowledge in both finance and accounting in banking technology, which had the merit to refine and make them closer to practice.

Thus, the trainee completed his training with the general knowledge of the performance of Peoples Bank and empowering in economical analysis. In order to improve his performance many tools and skills were put forward so that he can be able to analyze and resolve some problems observed in this financial institution through different techniques and procedures used in banking system. Adapting to the spirit of team work and how to communicate with customers are also major assets in my training.

2. Suggestions To increase the quality of service, the bank should; Increase the number of employees particularly in the department of accounting and tellers because the number of BPR LTD customers is always increasing. To have well organized documents that would be used by any individual especially the internee. This can help them acquire firsthand information on the branch operations and for the entire BPR LTD. Make continuous trainings to the branch employees. Educate and sensitize the public the importance of saving. To provide some incentives to employee who done his/her work perfectly Recommendations to the UPU

31 The internship period is short, the university should extend the internship period to We did an Internship when we are preparing a final project. So, an Institute could have

improve students exhaust all the activities to be learnt by the internee. a period for Internship and writing a final report differently in order to have sufficient time to accomplish them.

BIBLIOGRAPHY -Banque Populaire du Rwanda, Credit policy , 15th January 2010. - Banque Populaire du Rwanda, Manuel de procdures / comptabilit - Banque Populaire du Rwanda , Audit manuel - Banque Populaire du Rwanda , Politique de recouvrement - www.bpr.rw