T - 厦门大学通信工程系

The National Constitution provided for the establishment of a bank to carry out centralbanking functions. The BoS was thus established under Article 18 of the National Charterand the Constitutive law of the Bank of Somaliland, number 026. The Board of Directors(‘Board’) consists of seven members made up of the Governor who acts as the chairman ofthe Board, Director General as deputy chairman, and five members of which three areprivate businessmen.The BoS has the responsibility for managing the monetary policy, the currency and fordeveloping and regulating the banking sector, including the remittance companies, inSomaliland. In the absence of commercial banks it carries out limited commercial bankingfunctions. Senior management indicated that a legal framework for establishing banks and aregulatory framework to regulate financial institutions, including the remittance companies,exists in Somaliland. The BoS has also reportedly developed regulations governing theestablishment of operations of banks in the country.Given the historic background of civil unrest and the collapse of the banking system, there isa general lack of public confidence in the BoS. It was indicated by senior BoS officials thatthe Board recognizes that such problems exist and that it is attempting to separate the BoScentral and commercial banking functions by establishing separate management. Seniormanagement stressed the need for immediate training at all levels, from senior managementto junior staff, in all aspects of central and commercial banking work.Based on the departments visited in the BoS, it is apparent that the BoS operates more as acommercial bank and government treasury than as a modern central bank. Most operationsof the BoS are rudimentary and most significantly, it lacks regulatory capacity. Some of thedepartments/branches visited in the BoS included:# Personnel Department:The primary function of this unit at the BoS is to keep records on salaries, attendances andtransfers. All key decisions, however, are taken at the BoS headquarters. There arecurrently no job descriptions that define the roles and responsibilities for positions in thisdepartment as is best practice. Further, there does appear to be a specific training function atthe BoS, normally the responsibility of a personnel department. Whilst there is appears to bea clear need for a personnel function at the BoS, the current personnel department appears tolack the capacity to undertake activities other than the most rudimentary, such as thepayment of salaries.# Audit/Inspection Department:This BoS department carries out bi-annual audits after which it produces an audit report.Best practice would dictate that internal audits, and the subsequent production of auditreports or comprehensive minutes, be undertaken far more frequently, particularly given thelack of computerization at the BoS. A double-entry book keeping system is employed andeach branch’s books clear every ten days. Given the scale of operations at the BoS, thispractice appears to be satisfactory. This unit has 11 members of staff.# Branch number One:The branch comprises 17 members of staff divided into three units: general accounts, allaccounts and cash section. These units are typical of a branch of a commercial bank. The72