From the planning stage to the establishment of one the busiest banks of
burundian banking sector

Two months before the end of the fiscal year 2002, the 10th operational year of INTERBANK BURUNDI, IBB-INFOS newsroom thought it worth proposing you a retrospective of its existence since the planning stage up to the establishment of a bank which has grown very important in the Burundian banking sector. First of all, let's come back on the INTERBANK BURUNDI project in 1992.

1. The banking sector in 1992.

In 1992, only five banks were operating in Burundi: the Commercial Bank of Burundi (BANCOBU),the Credit Bank of Bujumbura ( BCB ), the Burundian Commercial and Investment Bank ( BBCI ),the Banque Populaire du Burundi ( BPB ) and the Meridien Biao Bank Burundi ( MBB ) and five other non-banking financial institutions :
the Banque Nationale de Développement Economique( BNDE), the Société Burundaise de Financement ( SBF ), the Caisse de Mobilisation et de Financement ( CAMOFI ), the Société Générale de Financement ( SOGEFI ) and the Fonds de Promotion de l'Habitat Urbain ( FPHU ).

Concerning the commercial banks, it is worth noting that all the five existing banks were operating with a considerable part of public share capital and three of them are affiliates of foreign financial institutions, notably: BANCOBU ( consortium of BBL, BNP and Dresdner Bank ), BCB ( Belgolaise ) and MBB ( Meridien Biao ).

This three last ones were the biggest, with 85% of the total assets of the banking sector, but the MBB was already in need of a recapitalization - which didn't succeed --due to heavy losses it had recorded.

Concerning the other financial institutions, whose the Government and the public enterprises hold the major part of the share capital except the SOGEFI, they play a relative role in the financial sector since their assets are estimated to 50% compared to those of the commercial banks.

This limited development of the Burundian financial sector, in a sustained economic growth environment, opened the way to the eventual establishment of a new bank or financial institution.

2. Le Projet Interbank Burundi.

Taking stock of that situation, a group of burundian private and foreign economic operators under the leadership of the current Managing Director of the Bank, Mr Callixte MUTABAZI, made the preliminary contacts for the establishment of a new commercial bank since early 1992.

	After the request for the authorization to establish the bank was approved by the then Minister of Finance, Mr Gérard NIYIBIGIRA on April 1992, the General Meeting establishing the bank was held on August 31st, 1992 and the Incorporation Deed was delivered by the Central Bank on September 24th, 1992.
Official Opening of the new Interbank Burundi (January 1993).

With the outcome of those proceeds ,a new commercial bank was born and started its transactions in January 1993.

With a Three Hundred Million Burundi Francs ( BIF 300,000,000 )capital , it was the first bank that started operating with a totally private capital stock owned by Burundian and Foreign shareholders, residents and non residents, of more than ten nationalities.

The Bank opened with a policy to reach a quality clientele that it aimed to serve with high quality standards in its operations or while supervising it.

The assessment of its output will be extended to you in our next release.

IBB-News /5 November 2002
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