Public Disclosure Copy The World Bank Implementation Status & Results Report Financial Sector Support Project (P150938) Financial Sector Support Project (P150938) SOUTH ASIA | Bangladesh | Finance & Markets Global Practice | IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 3 | ARCHIVED on 02-Jan-2017 | ISR26029 | Implementing Agencies: Bangladesh Bank Key Dates Key Project Dates Bank Approval Date:05-Jun-2015 Effectiveness Date:20-Sep-2015 Planned Mid Term Review Date:19-Mar-2018 Actual Mid-Term Review Date:-- Original Closing Date:30-Sep-2020 Revised Closing Date:30-Sep-2020 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to improve financial market infrastructure, regulatory and oversight capacity of Bangladesh Bank and access to long term financing for private firms in Bangladesh. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Strengthening Financial Market Infrastructure:(Cost $50.00 M) Strengthening Regulatory Capacity:(Cost $5.00 M) Supporting Long Term Finance:(Cost $292.50 M) Project Implementation and Monitoring:(Cost $2.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Moderate  Moderate 1/2/2017 Page 1 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Financial Sector Support Project (P150938) Implementation Status and Key Decisions The Bangladesh Financial Sector Support Project (FSSP) was approved by the World Bank Board on June 5, 2015. The Project became effective on September 20, 2015. Bangladesh Bank (BB) has set up a department named Financial Sector Support Project and Strategic Planning Department to implement the project. The department is fully functional, and the procurement of key Information Technology Packages under Component 1 (Financial Markets Infrastructure) and services for all the components of the project is now at the final stage. The Long-term Finance credit line of the project has also become operational, and twenty eight commercial banks have already signed contracts with Bangladesh Bank as Partner Financial Institutions (PFIs) to finance long-term FX borrowing. However, implementation is slower than planned, but BB has already built a strong pipeline of sub-projects and it is expected that the project activities will pick up in the coming months. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  High  High  High Macroeconomic  Moderate  Moderate  Moderate Sector Strategies and Policies  Moderate  Moderate  Moderate Technical Design of Project or Program  Moderate  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  Moderate  Moderate  Moderate Fiduciary  Substantial  Moderate  Moderate Environment and Social  Moderate  Moderate  Moderate Stakeholders  Low  Low  Low Other  --  --  -- Overall  Moderate  Moderate  Moderate Results Project Development Objective Indicators PHINDPDOTBL  Percentage of Government Payments by value processed through electronic means (annually) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 10.00 10.00 40.00 Date 30-Sep-2014 30-Sep-2014 30-Sep-2016 30-Sep-2020 1/2/2017 Page 2 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Financial Sector Support Project (P150938) Comments Updated actual amount is yet to be received from BB. PHINDPDOTBL  Certification of the BB against ISO270001 and COBIT (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Final Value NO No No Certification Date 30-Sep-2014 30-Sep-2014 30-Sep-2016 30-Sep-2020 Comments Activities that will lead to this result indicator have just started. PHINDPDOTBL  High level of operational reliability as measured by improved compliance of BB with the Principle 17 of the Committee of Payment and Settlement Systems (CPSS) – International Organization of Securiti (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Not observed Not observed Not observed Observed Date 30-Sep-2014 -- 30-Sep-2016 23-Sep-2020 Comments The activities related to this result indicator is yet to be initiated. PHINDPDOTBL  Performance on BCP assessment: Number of principles on which Bangladesh Bank is judged as largely compliant and compliant. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.00 -- 4.00 12.00 Date 30-Sep-2009 -- 30-Sep-2016 30-Sep-2020 Comments The activities related to this result indicator is yet to be initiated. 1/2/2017 Page 3 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Financial Sector Support Project (P150938) PHINDPDOTBL  Outstanding FX Long term loans of Participating Financial Institutions (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 550.00 Date 30-Sep-2014 -- 29-Sep-2015 30-Sep-2014 Comments The current actual amount is yet to be received from BB, which is now compiling the figures from all the PFIs. Overall Comments M&E expert has started his work on reporting on the results indicators. A detailed update on the Outcome Indicators will be provided in the next ISR. Intermediate Results Indicators PHINDIRITBL  Observance the General Principles of Credit Reporting Systems. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target To be assessed – To be assessed. To be assessed. Broadly Value Expected t o be Partial Expected Partial Expected Partial Observed Observance observance observance Date 30-Sep-2014 30-Sep-2015 30-Sep-2016 30-Sep-2020 1/2/2017 Page 4 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Financial Sector Support Project (P150938) PHINDIRITBL  Uptime of the core systems of the BB: core banking, payment systems, credit reporting system, and MI module (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 95.00 -- 95.00 98.00 Date 30-Sep-2014 -- 30-Sep-2016 30-Sep-2020 PHINDIRITBL  Cumulative number of Bangladesh Bank banking supervision officers trained on risk-based supervision (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 500.00 Date 30-Sep-2014 -- 30-Sep-2016 30-Sep-2020 Comments The actual number of BB personnel trained on risk-based supervision is yet to be received from BB. PHINDIRITBL  Circular on prompt corrective action issued by BB (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No circular issued yet No circular issued yet Circular issued Date 30-Sep-2014 -- 30-Sep-2016 30-Sep-2020 Comments Activities related to this indicator is yet to start. PHINDIRITBL  Financial inclusion strategy drafted and approved (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Strategy Value No No No published and disseminated Date 30-Sep-2014 -- 30-Sep-2016 30-Sep-2020 Comments 1/2/2017 Page 5 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Financial Sector Support Project (P150938) A key decision has just been made that the Bank team will support BB technically to prepare and submit the Financial inclusion strategy to the appropriate authorities of the government. PHINDIRITBL  Direct project beneficiaries (firms and PFIs) that feel project financing reflected their needs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 75.00 Date 30-Sep-2014 30-Sep-2015 30-Sep-2016 30-Sep-2020 Comments The current actual percentage is yet to be received from BB. PHINDIRITBL  Cumulative number of Training Of Trainers (TOT), awareness campaigns and workshops delivered to industry associations on safeguardsand health and safety (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 64.00 Date 30-Sep-2014 -- 30-Sep-2016 30-Sep-2020 PHINDIRITBL  Cumulative number of FI officers receiving training or attending workshops on risk management, safeguards, and commercial practicesin procurement (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 56.00 45.00 Date 30-Sep-2014 -- 30-Sep-2016 30-Sep-2020 1/2/2017 Page 6 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Financial Sector Support Project (P150938) PHINDIRITBL  Number of PFIs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 28.00 10.00 Date 30-Sep-2014 -- 30-Sep-2016 30-Sep-2020 Comments All the selected PFIs meet the qualifications requirement as per the OM. PHINDIRITBL  Direct project beneficiaries (firms) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 250.00 Date 30-Sep-2014 -- 30-Sep-2016 30-Sep-2020 Comments Actual number is yet to be received officially from BB. PHINDIRITBL  Publication and dissemination of two analytical and policy research papers on the development of long-term capital markets and on the pensions market (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Papers Value No No No produced and disseminated Date 30-Sep-2014 -- 30-Sep-2016 30-Sep-2020 PHINDIRITBL  NPLs in project-funded in foreign-denominated long-term finance portfolio (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 7.00 Date 30-Sep-2014 29-Sep-2015 30-Sep-2016 30-Sep-2020 Comments The actual NPL amount is yet to be received from BB. 1/2/2017 Page 7 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Financial Sector Support Project (P150938) PHINDIRITBL  Publication and dissemination of study on Warehouse receipt financing in Bangladesh (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Study on warehouse receipt Value No No No financing produced and disseminated Date 30-Sep-2014 29-Sep-2015 30-Sep-2016 30-Sep-2020 Comments Activity is not due yet. Overall Comments BB is expected to send its report on project results and indicators by January 2017, the task team will submit a more reflective and accurate picture of the Project’s implementation performance. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P150938 IDA-56640 Effective XDR 213.40 213.40 0.00 23.47 189.93 11% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P150938 IDA-56640 Effective 05-Jun-2015 30-Jun-2015 20-Sep-2015 30-Sep-2020 30-Sep-2020 Cumulative Disbursements 1/2/2017 Page 8 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Financial Sector Support Project (P150938) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 1/2/2017 Page 9 of 9 Public Disclosure Copy