Improving the Role of Eximbanks/ECAs in the OIC Member States
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3.2.3 Institutional Strength
For Institutional Strength, the question being considered is from the perspective of the ECA as an
organization and whether it is being operated on a viable and sustainable basis.
The key dimensions of health for the institution are:
9. The institution’s expertise is well-recognized and sought after
This relates to the market status and recognition of the national ECA and related institutions.
For example, within a country context, this would mean that the ECA is called on by the
government and other agencies as a knowledge centre on risks and opportunities for export
promotion.
10. The portfolio is actively managed
This focuses on the degree of active portfolio management by the ECA, as well as the ECA’s
creativity in managing single obligor, sector and country concentrations (e.g., reinsurance,
asset sales and swaps, securitizations, etc.).
11. The internal processes are not bureaucratic
This deals with the speed and quality of the processes (both formal and informal) for
reviewing and approving transactions, as well as the degree of authority delegated to the
ECA.
12. The institution’s human resources are stable and decisions are consistent
An important element is the degree to which the ECA can develop and retain experienced
staff and executives. Moreover, this dimensions relates to a dynamic working culture in
which staff feel confident in the decision-making and direction of the executive management
team.
3.2.4 Private Sector Involvement
Another crucial area in determining the overall health of the export credit system is the extent to
which the private sector is actively engaged in providing export credit facilities. Specifically, this
area considers whether the ECA is promoting and facilitating their involvement or whether it is
displacing or impeding the private sector, either as a result of its actions, or as a result of a
deliberate policy. Both private insurers as well as the banking sector are considered.
The key dimensions of health for private sector’s involvement are:
13. The ECA works well with banks
A key issue here is the degree to which the ECA and other related institutions are perceived
to be cooperating or competing with domestic or international banks, particularly in respect
of medium and long-term capital goods and project business.
14. ECA works well with private insurers
An important aspect is the ECA’s ability to work with and complement the activities of
private insurers in all areas of business: short-term credit insurance, medium and long-term