BDL Summer Training ‘17
Notre Dame University – Louaize
Faculty of Natural and Applied Sciences
Computer Science Department- Shouf Campus
Name: x
Course #: CSC 480- Internship Final Report
Location: Beirut- S
...
BDL Summer Training ‘17
Notre Dame University – Louaize
Faculty of Natural and Applied Sciences
Computer Science Department- Shouf Campus
Name: x
Course #: CSC 480- Internship Final Report
Location: Beirut- Summer 2017
Phone #: x
Email:
[email protected]
2Table of Contents
Chapter 1 :
Introduction…………………………………………………….......................4
1.1 History of BDL…………………………………………………….…………………………4
1.2 Role and
Function……………………………………………………………………………………………
…………...4
Chapter 2 : Departments ………………………………………………………………... 6
2.1 Training and Development Department...........................................................................5
2.2 Payment Systems Department…………………………………………………………. 5
2.3 Statistics and Economic Research Department…………….…………………………...6
2.4 Human Resources Department………………………………………………………….7
Director : Firas Hamdan
Human Resource Department: "The Human Capital of the Organization"
The main function of the Human Resources Department is to assist employees through their life
cycle at the bank and even after retirement in order to bring out the best of their potential and
thus contribute to the success and stability of the bank. Its functional purpose is to manage the
bank's employees affairs, and to oversee the execution of local rules and regulations, primarily
the laws of labor, NSSF and the internal employees' book of rules and regulation.
It consists of 6 divisions and one Unit:
Planning & Performance division develops planning tools and studies to manage human capital
and provides the statistical data that contributes to performance improvement and technical
progress.
Attraction & Recruitment division is concerned with attracting human resources to meet the
needs of the bank with all the follow ups recruitment procedures and examinations, in addition to
preparing exams for employees promotions.
Employees division is responsible for following up all issues related to employees such as
benefits, social security, schooling, time attendance and other day-to-day activities.
Salaries & Wages division deals with calculating the salaries, wages, and compensation of
employees at the bank, in addition to preparing payment vouchers for all contractuals. It also
supervises the expenses and budget.
Internal Audit division has been developed recently with the aim of maintaining information
accuracy and reliability, and reducing the possibility of human error.
3End of Service division calculates, follows-up and executes the End of Service Indemnity of
employees at the bank along with reconciling accounts with the Social Security Fund and dealing
with any activity related directly or indirectly to the End of Service Indemnity of the employees.
Medical Care unit performs a variety of services related to delivery of medical benefits and
issues for the employees and the beneficiaries.
More Details...
2.5 Information Technology Department…………………………………………………...8
2.6 Foreign Exchange and International Operations Department………………………......8
2.7 Banking Department …………………………………………………………………...9
Director : Najib Choucair
The Banking Department is composed of:
the Survey Division,
the Information Division,
the Central Office for Credit Risk,
the Central Office for Returned Cheques.
The functions of the Survey Division are :
to examine credit applications from banks
to examine banks' applications for the establishment of new branches or merger,
to supervise the financial situation of banks and their sources and uses of funds,
and to keep updated information on banks.
The Information Division collects information about banks, financial institutions and related
entities. The Central Office for Credit Risk provides operating banks and financial institutions
upon their request and under strict confidentiality with information on total credit extended to a
debtor without specifying the lending sources. The Central Office for Returned Cheques,
provides operating banks, under strict confidentiality, with information on returned cheques
and/or their issuers.
2.8 Accounting Department…………………………………………………………….…10
42.9 Money Services Businesses Department……………………………………………...11
Chapter 3 : Description of the Other Work…………………….……………………....11
3.1 Capital Markets Authority…………………………………………………………......11
3.2 Banking Control Commission………………………………………………………....11
3.3 Kafalat………………………………………………………........................................12
3.4 Islamic Banking…………………………………………………………………….....13
3.5 Combating Money laundering and Terrorist Financing……………………………....13
3.6 UK Lebanon Tech Hub……………………………………………….........................14
Chapter 4 : Knowledge Acquired……………………………………………………..15
4.1 Lebanese Red Cross………………………………………………………………....15
4.2 KunHadi……………………………………………………………………………..15
4.3 Lebanese Civil Defense………………………………………………………….….15
Chapter 5: Evaluation……………………………………………………….………...16
5.1 Overall Evaluation………………………………………………………………….16
Chapter 6: References…………………………………………………………….……17
6.1 References…………………………………………………………………….……..17
1.1 History of BDL
Ottoman domination of Lebanon, which lasted for more than four centuries, was brought to an
end on 1918. The paper money issued by the Turkish Treasury, with a forced exchange rate,
suffered the same fate. In order to normalize economic life in the occupied territories and cover
the expenses of the allied forces, English authorities imposed the banknote of the National Bank
of Egypt. During World War I, In order to replace the Egyptian pound, the French government
decided, by Decree N° 129 issued by the High Commissioner on March 13, 1920, to endow
Syria with a national currency. On September 1, 1920, the representative of France proclaimed
Great Lebanon. In 1920, the Bank of Syria was granted the concession of issuing the Syrian
currency, which became legal tender on May 1, 1920. Banknotes issued by this bank were
reimbursable to the bearer or at sight by checks drawn on Paris, at the rate of FF 20 for one
Syrian pound. As a consequence, an independent, currency-issuing department was established at
5the Bank of Syria. It was responsible for putting in circulation and withdrawing banknotes.
Concerning commercial operations, the Issuing Department was to provide the Bank of Syria
with banknotes only in exchange of foreign currencies or foreign securities, which constituted,
together with the credits granted by the Treasury in Paris, the coverage of the currency in
circulation.
1.2 Role and Function
The Banque du Liban is the central bank of Lebanon it was established by the Code of Money
and Credit promulgated on 1 August 1963, by Decree no. 13513. It started to operate effectively
on 1 April 1964. BDL is a legal public entity enjoying financial and administrative autonomy. It
is not subject to the administrative and management rules and controls applicable to the public
sector.
The Banque du Liban is managed by the Governor who is assisted by four Vice-Governors, as
well as by the Central Council. Which is the legal representative of the Banque du Liban, and has
extensive authority on the management of the Bank. He is entrusted with the enforcement of the
Code of Money and Credit, and the implementation of the Central Council's resolutions. While
the Vice-Governors assist the Governor in managing the Bank, carrying out functions specified
by the Governor. In addition, they assume their duties as members of the Central Council.
One of the main responsibilities of the bank is issuing and printing Lebanon's currency notes and
coins. Other responsibilities include maintaining monetary stability by increasing and decreasing
the money supply by using three tools: Interest rate, open market operations and reserve
requirement ratio. It provides a payment system for the transactions between banks and intraday
liquidity. And also responsible for the transactions related to the government. In addition, to
maintain financial stability by providing emergency liquidity when incase of deflation and it
decrease liquidity in case of inflation. Finally, the Central Bank manages the portfolio of foreign
exchange reserves of the country and may buy or sell them to influence the exchange rate.
2.1 The Department of Training and Development:
The Training and Development Department, since its foundation as a basic piece of BDL in
1996, has given education and training which is integral to the operational success for the BDL
6employees. Operational success means performing roles, tasks, and functions effectively,
efficiently, and safely. This department is committed to ensuring all employees are provided with
appropriate, applicable, professional education and training to ensure organizational
effectiveness and employee long term career success and safety. As well as to university
students, in which the department is responsible for organizing conferences and seminars to
provide them with the various BDL regulations and circulars related to its monetary, financial
and banking policies. In addition, the department is responsible for the preparation of entrance
exams to the BDL, and of assessment tests for the purpose of promoting certain employees to
specific ranks.
2.2 Payment Systems Department:
The Payment Systems Department was created in 2010, is composed of three divisions:
operations, oversight, and research and development. That replaced the Current Operations
Department, it’s responsible for performing and overseeing all kinds of operations in the
National payment system operated by the BDL which is made of the following components: Real
Time Gross Settlement System (BDL-RTGS), Retail Payment System (BDL-CLEAR), and
Government Payment System (BDL-GPS), as well as overseeing all other private payment
systems in Lebanon, in accordance with the relevant regulations and international principles and
standards. (BDL-RTGS) is a settlement system designed to process large value, time critical
payments on a real time basis. Where transfer is bank-to-bank on two different basis: real time
settlement: it’s not subjected to any waiting period while the gross settlement means that the
transaction is settled on one to one basis without bunching or netting with any other transaction.
(BDL-CLEAR) is a clearing system for retail payment instruments in Lebanon which performs
the clearing of every kind of a specific operation through a specific Tool called Stream. It’s of
two types a High volume – Low value bulk payments system provided in four Currencies (LBP,
USD, EURO…). The third component of the National Payment System, BDL-PayGov, is an
application that is intended to facilitate the issuing and receiving of Government payments.
In addition to that it performs all kinds of clearing and settlement of cheques and cards’
transactions (ATMs (Automated Teller Machine services provided either in the national currency
or in US dollars and EURO and they are either located inside the premises of a bank or outside
their premises “universities, hospitals….”). And POS (Point of Sale services provided either in
7the National currency or in US dollars. In which they are managed by VISA and Master Card.
And they are located everywhere inside malls, Restaurants...). In addition, it’s responsible for
transfer payments (Direct Credits and Direct Debits).
2.3 Statistics and Economic Research Department:
The department is composed of the Statistics Division and the Economic Research Division. The
functions of the Statistics and Economic Research Department are: To prepare statistical data on
economic and financial activities on seasonal adjustment to get real results with rapid low cost.
BDL Coincident Indicator found in 1994 it’s a composite indicator, it was created to solve the
problem after the war; the statistics related to GDP and national accounts weren’t available. So it
consists of seven variables (summation of single indicator) including: Foreign trade
(Imports/Exports), cleared checks, electricity, oil derivative imports, cement deliveries, money
stocks and passenger flows. In addition to the BDL business survey which was found in 1993
that followed the same methodology of INSEE and Banque du France. It’s a qualitative survey
(no need for turnover) on quarterly basis comparing the using surveys by the other depending on
the same sector and category. Balance of opinion we take sample of companies according to the
annual turnover (cash in per year) and then we weight each company. While sample selection,
each type is divided by the type of the activity and the size of the enterprises which is
represented by their annual turnover. Moreover, to provide information on economic, financial,
and monetary conditions; and to prepare monthly and quarterly bulletins, and other reports and
publications. In addition, it undertakes research on economic, monetary and financial issues.
Macro economy is related to four sectors: Real Sector, Balance of payments, Monitory Sector,
Physical Sector Monitory sector collects information from all banks and compare them with
IMF, and then it gets monthly bulletin and they study each bank by its BOP and they oversee
their process flow. There are two types of bulletins the monthly and quarterly; the monthly
bulletin is available in three languages including descriptive texts. While the quarterly bulletin is
available in two languages only and it includes analyzed statistical tables. Balance of Payments
is an economic statement which is a double entry system that is divided into two parts: current
account and capital and financial account
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