Vinstar - Assisting the Financial Sector in Asia

Vinstar's Nalayini Brito with Bangladesh Bank Executive Director, Ziaul Siddiqui and and Vinstar's guest speaker, former Reserve Bank of New Zealand Governor, Dr Don Brash

Visitors from Bangladesh

Vinstar recently organised and hosted a group of high profile financial sector personnel from Bangladesh on a visit to Australia and New Zealand. The visit was funded by a loan from the World Bank to the Government of Bangladesh and is part of the overall Financial Institutions Development Project for Bangladesh. 

The visiting group included senior representatives from the Central Bank, the Ministry of Finance and the Securities and Exchange Commission. The visit included a three-day course in Auckland, prepared by Vinstar, which focussed on the development of capital markets and the process of securitisation. To complement the morning sessions, where specific topics were delivered and discussed, each afternoon session incorporated a special guest lecture, where eminent New Zealanders outlined the practical lessons learned from the New Zealand experience of financial sector reform. Speakers for the three afternoon sessions were previous Governor of the Reserve Bank of New Zealand, Dr Don Brash, former New Zealand Finance Minister, Ruth Richardson and ex BNZ Chief Economist, Donal Curtin. 

Vinstar consultants at the Bangladesh seminar with former New Zealand Finance Minister, the Honorable Ruth Richardson

The group then moved on to Wellington where visits were made to the Reserve Bank of New Zealand, the NZ Securities Commission and the NZ Stock Exchange. In addition, the National Bank of New Zealand invited the group to visit its Dealing Room. This visit coincided with the monthly Government Bond auction which highlighted for our visitors the advanced nature of our financial sector operations in New Zealand. The National Bank also arranged for former New Zealand test cricketer Roger Twose to meet with the group and he made a presentation to them of cricket memorabilia. They attended a New Zealand wrap-up dinner where Trade New Zealand Director, Ken Douglas, was guest speaker. 

The tour moved to Sydney where the group, led by Vinstar Tour Leader Michael Rose, visited the Reserve Bank of Australia, the Australian Securities and Investment Commission (ASIC), the Australian Prudential Regulation Authority (APRA) and Australian Standard & Poors, before departing for Bangladesh. It is to be hoped that our guests, on their return to Dhaka, can put into action the lessons learned from their visit.                     

Future Visitors from Bhutan

Vinstar has just completed its review of the Financial Sector in Bhutan for the Asian Development Bank. This project commenced late last year and culminated in a seminar delivered by Team Leader Dr Marian Bond to senior members of the financial sector in Bhutan, including the Secretary of Finance, Secretary of Trade and the Managing Director of the Royal Monetary Authority, and also members of the business community, including the Bhutan Chamber of Commerce and the business leaders of the country. 

The seminar was followed up by a tripartite meeting in Thimphu that included representatives from the Royal Monetary Authority, the Asian Development Bank and Vinstar Executive Director, Mr Gareth Davies. At the meeting it was agreed that Vinstar would organise a visit to New Zealand by senior personnel from the Royal Monetary Authority. This visit will provide them with an opportunity to meet with institutions and organisations operating in the financial sector.

Project Commences in Sri Lanka

Vinstar recently commenced a rural finance development project in Sri Lanka. This project, funded by the Asian Development Bank, has required the fielding of 12 consultants (six international and six local) with a view to identifying the future needs of the sector. Areas covered by the TA include strengthening of Rural Finance Institutions, Microfinance development, SME development, Social & Poverty Analysis, Information Technology, legislation changes and environmental assessment. The international team includes nationals from New Zealand, Australia, the United Kingdom and Canada. 

Vinstar is working with the Central Bank of Sri Lanka as the Executing Authority and during negotiations in Manila with the Asian Development Bank worked with both parties to extend the scope of the TA to cover rural areas in the west and northwest of the country. This extension of services was seen as extremely valuable given the ongoing peace process in the country. Vinstar is the lead firm on this assignment which it is undertaking in association with a UK based company and also one based in Sri Lanka.

Vinstar – More Success in Asia and the Pacific

In the competitive environment of international consulting, Vinstar has won a number of key projects in recent months, most notably in Samoa and Bhutan.

Vinstar Executive Director, Gareth Davies, meets with Mr Penjore, Head of the Research and Statistics Division at the Royal Monetary Authority of Bhutan.

Bhutan – Review of the Financial Sector

Bhutan is a new country of work for Vinstar which to date has undertaken assignments in more than 20 countries in the Asia-Pacific region. Bhutan is a scenically awe inspiring place with which most New Zealanders would find a very strong affinity.

In May, Executive Director Gareth Davies made a site visit to Manila and then Thimphu. This was undertaken in order to gain a full understanding of the plans of the Asian Development Bank and the needs of the Bhutan Financial Sector. It was interesting to note that during his visit, Mr Davies met a number of senior members of the Bhutanese Financial community who had undertaken training scholarships in New Zealand and who had subsequently married New Zealanders.

In late August, Vinstar submitted its proposal to the Asian Development Bank and the Executing Authority, which is the Royal Monetary Authority of Bhutan. Competition for this project was tough and came from firms located in the United Kingdom, Japan, Spain and the USA. Our team predominantly consisted of New Zealanders supplemented by an American who was working in Kosovo and included a Financial Sector Specialist, a Capital Markets Specialist, a Private Sector Specialist and an IT Specialist.

In September we were advised by the Bank that we had been ranked first and we have already fielded all the team members. Their overall task is to undertake a full review of the financial sector and its specific impacts on the private sector and then make recommendations as to future lending to the Government of Bhutan by the Asian Development Bank.

Samoa – Development of the Business Sector

Vinstar has been working continuously in Samoa since 1996. We have had teams working on the strengthening of the Financial Sector and also on reforming the Public Sector. At the present time our long-term project providing assistance to the Public Sector continues its very successful progress.

In May of this year we submitted a proposal to the Asian Development Bank for a three-year project to support capacity building of financial and business intermediaries, with the overall aim of supporting small and micro businesses. Our competition came in the form of another New Zealand company and very strong opposition from Australia, the United Kingdom, the USA and Canada. After a very successful site visit by Executive Director Nalayini Brito, we put together a very strong international team of New Zealanders and a compelling methodology and were subsequently ranked first.

The Vinstar team consists of a Micro-finance Specialist, a Legal Specialist, an NGO Specialist and a Credit Reference Specialist. Vinstar is also fielding a complementary team of local specialists. A number of the team has already been fielded and we are preparing to field the remainder, in what is set to be a landmark project for the Government of Samoa. This will see the necessary strengthening and support for small and micro enterprises in a country that has been a success story in terms of the positive benefits of aid money.

Success Overall for Vinstar

It was pleasing to note that a recent Asian Development Bank publication highlighted the fact that in the five-year period 1 January 1996 to 31 December 2000, Vinstar had won more contracts with the Bank than any other New Zealand domiciled consulting firm.

And Finally

Our long-term projects in the Pacific and Asia continue to progress well. In particular our team working on a five-year World Bank assignment in Bangladesh continues to make good headway in assisting the development of the financial sector. This is being achieved despite national problems surrounding the difficult parliamentary environment and recent disturbances related to the general election process.