LFS has developed a set of instruments and tools that forms the basis for the successful implementation of our projects:

• Organisational Statutes, Manuals and Business Schemes
• LFS Training Programme
• Software: LFS MicroBank System®
• Rating and Monitoring of Banks: The LFS P-CAMELS

Organisational Statutes, Manuals and Business Schemes

LFS has elaborated blueprints of statutes for financial institutions, organisation manuals, credit regulations, as well as the necessary job descriptions. According to the objective and the approach with which credit programmes are to be implemented, LFS tailors these blueprints to the needs of the client. LFS also has schemes available for business plans and financial projections for financial institutions.

LFS Training programmes

We have developed training programmes for the staff of financial institutions in DTE that have proven to be an efficient instrument to ensure the necessary knowledge transfer. The training programmes are based on actively involving the participants, as this is the best way to achieve a substantial improvement of their operative performance. We achieve this by combining theoretical teaching methods like lectures with practical case studies and training-on-the-job.

The LFS training programme includes:

• training of loan officers
• training of managers
• traineeships for executives and trainers
• training of IT personnel and software users

In order to support the training and to make it sustainable, LFS has developed training handbooks for different training products and carries out training of trainers.

Software: LFS MicroBank System®

The LFS MicroBank System® is designed to meet the specific requirements of institutions ranging from credit granting non-banks to small commercial banks under very different legal, economic and technical conditions. The system can be used both to manage an entire bank and as a specific donor-financed credit line, which requires special monitoring and reporting.

The LFS MicroBank System® is the backbone for managing a loan portfolio. It is the basis for the Management Information System, and it provides all essential information for loan officers, bank managers, donor agencies and consultants.

The software is based on independent modules that access a unique database. In many cases, our software is used together with other already existing applications. In this case it is important to link the bank's software to the LFS MicroBank System® in order to avoid duplication of work and to exclude sources of errors and manipulations. We have developed an interface that allows the easy integration of our system with the existing IT solutions of a financial institution. Our software services include:

• installation of single modules or the entire system and integration in the existing system;
• migration of data from the old to the new system;
• training of the IT personnel and the users of the system;
• provision of updates and upgrades of the system;
• maintenance.

Rating and monitoring of Banks: The LFS P-CAMELS

The successful implementation of a financial programme largely depends on the strength of the partner banks. Another essential aspect is whether the loan product fits into the strategy and organisation of institutions. LFS therefore puts considerable emphasis on the proper selection of potential partners.

Furthermore, a close monitoring of the development and performance of the partner institutions during the entire project phase is essential and prerequisite for swift action to ensure the continuing soundness of the project.

LFS has developed a standardised Partner Bank Rating, Monitoring and Evaluation System to select and monitor banks in developing and transition economies. It analyses banks in absolute terms and relative to a peer group of banks in the same country.

LFS has developed a standardised Partner Bank Rating, Monitoring and Evaluation System (PBRS) to select and monitor banks in developing and transition economies. It analyses banks in absolute terms and relative to a peer group of banks in the same country. Our basis for appraising and rating banks is the CAMELS approach. Each letter of CAMELS stands for a thorough examination of the size, composition and trends of the bank's (C)apital, (A)sset quality, (M)anagement, (E)arnings and Efficiency, (L)iquidity and (S)ensitivity to Market Risks. In very dynamic and erratic markets it is important to analyse the bank?s current market position and its strategy. We have therefore added a (P) for Profile and Market Position. Under this heading we assess the bank's competitive position in the financial market and its strategy for defending and expanding it. Accordingly, we call our approach the "LFS P-CAMELS". We use it to draw a complete picture of the specific "Risk Profile" of a bank.