The BBK bank is based in Manama in Bahrain. The bank deals in giving banking solutions to the corporate and retail customers. Also, the bank has now been providing securities exchange facilities to the investors in Bahrain. Thus the bank offers the following facilities as below.
Personal financial advisory services.
Investment in securities.
The bank is known for providing leadership and quality services with a variety of investment solutions providing to the customers. The bank uses its innovative products and quality services to meet the demand of customers in retail, corporate and institutional sector. The features of company policy include the followings.
Retail Banking.
Financial investments.
Insurance and wealth management.
Real Estate investment.
Corporate investment. Etc.
Inntron Company: An introduction.
Inntron company is an advisory of technological know how to the banks and other financial sectors around the globe. The company offers assistance in the followings,
Core Banking solutions.
Information and Technology consulting.
Professional guidance.
Thus the company assists the large banks and financial institutions in keeping their day to day record, market analysis, system comparisons and review and selection process. Thus the technological assistance given by the company helps the in updating their systems of work online and offline. This way the bank can not only facilitate the customers to use its web portal for various bank services online, but also help in quick processing and time savings of the various transactions that happens during the work time and even after. These transactions are processed such that any branch transaction is made available to the higher authority within few minutes and they can review and judge the working of the employees in that particular branch.
At present the company is offering services to the following companies.
ABN AMRO bank.
Citibank.
DBS Singapore.
Bank for Agriculture and Agriculture cooperatives.
Bank Thai.
BBK bank, Bahrain and Kuwait.
Task 2:
Historical Background:
BBK bank was formerly known as the Bank of Bahrain and Kuwait. This bank came into existence in 16th March, 1971. Thus from the very existence the bank is making full attempts to achieve its perfection in becoming a complete commercial bank which provides latest facilities to the customers ith lower paper works. The bank began its operation with the initial capital of BD 1 million which has turned to 303.9 million BD in these 41 years. Thus the pace of development of the bank and its offering varied operations to the customers of the bank has made the bank successful and iconic for the other banks to follow.
Presently the bank has made partnership with many companies to increase its area of operations in other fields. These latest facilities offered by the bank include the followings.
CreditMax Credit cards.
Telecommunication services.
Travel and Insurance services.
Automated systems that decrease the standing time in queues.
The bank offers its service not only to the retail customers but also corporate customers. Thus lending, deposits, investments and other state of the art facilities are being offered to the individuals, investors, businesses, corporate house and even government agencies. Presently the bank has added the Islamic investment procedure so as to attract more customers to the bank who wants the facilities of Islamic banking system.
The bank has its branches in many countries in the Middle East. These includes,
Dubai.
United Arab Emirates.
Kuwait.
Bahrain.
The bank has added some features of Islamic norms and provides special kinds of facility to its customers as per the rules and guidelines of Islam. Thus bank has following distinctive features.
Qualified management.
Strong paid up capital.
Global standard services and highly efficient products offered.
Achieving social responsibilities by following Islamic bank guidelines.
Innovation and product differentiation are the key features of the bank's distinction.
Task 3:
Accounting cycle, Revenue cycle and Human Resource cycle:
The accounting cycle for the BBK bank is well followed by the management. The accounting cycle of BBK bank consists of the followings.
Collection and verification of source documents of financial transactions by the bank managers.
Analyzing of each transaction is the next step.
The transaction is then recorded in the books of accounts.
This transaction is now posted from Journal to the according ledger of the individual or company.
The trial balance of the transactions in the whole period is made.
Worksheet are the prepared consisting of the financial transactions made in a definite time period.
Next step is to made financial statements that helps in understanding the net gains or loss to the individual, company or business.
Journalizing and post closing entries helps in fulfilling the norms of the accounting before completing the accounting cycle of transactions in a given period.
A post closing trail balance is prepared to inform the bank, and the investor about its financial position during a definite period.
This way the whole accounting procedure is followed by BBK bank. The Revenue cycle later helps in getting the following information about the bank and the bank account.
Analyzing the AR or the account receivable by the bank under that particular bank account.
Analyzing and review of the management report.
Assitance in formation of the revenue cycle for that particular account.
Therfore the revenue cycle is actually the complete business process that is followed in the BBK bank. Which includes all the transactions from acquiring the money to recording, analyzing and registering the whole transactions. Thus the process followed in the revenue cycle includes the followings.
This way the revenue is earned by giving the bank facilities to the customers. The transactions starts with the offering of deposits, loan dispersal whichever facility is asked by the customer. This is then followed by the cash or cheque received from the customers from time to time as part of repayment agreed. The sales service is given to the customers. The transactions are recorded in the sales journal. And finally the account receivable stand in the books of account and the bank earns interest.
The human resource cycle followed in BBK includes the following steps.
E
M
P
L
O
Y
E
E
L
I
F
E
C
Y
C
L
E
Thus employee life cycle starts with the announcement that is made to send the Curriculum Vitae to the bank. The initial screening of the letters is made and the people who qualify the basic requirements are asked to join the hiring process by coming to the interview sessions. The selection is made as per the requirements of the company. The selected person is entitled with the job and introduced with the job related responsibilities. The probation period starts and the new entrant performance appraisal is made. This is then followed by succession for the out performer and lay off for under performer. The development and training is given to make the individual more competitive for the required job. The transition of the person is made to different departments from time to time so that his valuable services can be used in various fields and all the rest of the departments can get the benefit.
Task 4:
Advantages, disadvantages and recommendations:
An objective of an accounting system is to provide with the true and latest picture of the business. BBK relay on Pheonix in so many ways:
Advantages of accounting system software "Pheonix":
Reliable Software.
The Accounting systems software used by the BBK bank is reliable. The facts and figures collected helps the corporate officials to get instant and true report of the company business and plan an appropriate strategy for them.
Analytical tools:
The Accounting systems used by the bank also work as analytical tool so as to have a SWOT analysis. That is it becomes easy to identify the Strengths, Weaknesses, Opportunities and Threats to the business. Therefore, making it easier for the management to take decisions on high importance matters on time and also the most appropriate one.
Reduce Efforts:
The efforts required to record hefty financial transactions and make a mammoth financial statement, the Accounting systems helps in automatically recording the simple sales transactions in cash book, Sales book, Trading and Profit and Loss account and finally affecting the Balance sheet.
Save time:
The Accounting system helps in saving time. Thereby with the availability of facts and figures on time, the management finds easy to take swift actions that most desirable for the company future.
Improve Efficiency:
The Accounting system helps in improving efficiency of the business. For instance the Best performer can be appreciated and the worst performer can be shown way out before he destroys the business completely.
Reduction in Errors:
By having prepared the books of accounts automatically it becomes easier to access the information and difficult to have errors is such minute by minute updated accounts information systems.
Disadvantages of accounting system software:
A number of advantages related to Accounting system are followed by certain disadvantages. These include the followings disadvantages.
Difficult to understand the Accounting Information system:
It becomes difficult for the new comers to learn the process of Accounting Information systems. Some employees may find it boring, others may find it hectic. So there is varied level of discontent that might be seen in the employees, especially at new store.
The reason can be a difficult and little time consuming entry method. It can take weeks or months for the new employees to get used to the technology and avoid errors as much as possible.
Some employees may find it difficult to understand so much that they might quit and then we are left with yet new employee who needs to be trained again as that last quitter.
Easy loss of Information:
The information fed in the computers can easily get lost due to negligence of the employee or software problems. The hard disk may find no more space, there may be electricity failure or any other software malfunctioning, system crashes, virus etc leading to loss of the information permanently.
Increasing chances of errors 'in some cases':
In a wake to get improvised working conditions, latest inputs of records and easy and quick access forces the Multinational companies to keep on upgrading their software but this might bring confusion to the employees there by increasing chances of errors.
Recommendations:
A number of recommendations can be given to the BBK bank and Inntron Company. These include the followings.
Improve efficiency of human resource than making them rely on software's.
Software needs to be upgraded from time to time.
An Additional feature of back up of information is required on daily basis in the software so that the unforeseen problem can be handled in a much better way.
The education and training of bank staff with the new software at regular intervals is required to make them fully efficient with the latest techniques.
Selection of the best candidate and proper performance appraisal will help in retaining the right person for the right job.
