Public Disclosure Copy The World Bank Implementation Status & Results Report Financial Sector Support Project (P150938) Financial Sector Support Project (P150938) SOUTH ASIA | Bangladesh | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 5 | ARCHIVED on 22-Jan-2018 | ISR31172 | Implementing Agencies: Government of Bangladesh, 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  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Moderate  Moderate 1/22/2018 Page 1 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Financial Sector Support Project (P150938) Implementation Status and Key Decisions 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 complete. The Line of Credit for Long Term Financing for the manufacturing sector has been performing very well with a strong pipeline of subprojects. The total value of the loan application received by BB is USD 460 million from 90 manufacturing firms through 31 PFIs/eligible banks. BB has already sanctioned USD186 million for financing of 42 green projects (with no safeguards issues/impacts), and the Bank task team and BB's project team are currently reviewing proposed Environment and Social risk Management Plans of seven RED category loan applications from worth USD 98 million. 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  Substantial 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 15.00 15.00 40.00 Date 30-Sep-2014 12-Jul-2017 12-Jul-2017 30-Sep-2020 1/22/2018 Page 2 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Financial Sector Support Project (P150938) 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 12-Jul-2017 12-Jul-2017 30-Sep-2020 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 12-Jul-2017 12-Jul-2017 23-Sep-2020 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 4.00 12.00 Date 30-Sep-2009 12-Jul-2017 12-Jul-2017 30-Sep-2020 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 0.00 550.00 Date 30-Sep-2014 12-Jul-2017 12-Jul-2017 30-Sep-2014 Overall Comments Please note that this ISR does not report on the update on the results indicators. BB is expected to submit its M&E report to us in another 22 working days, and the accurate picture of the results and project performance will then be updated into the system for record and management's attention. BB's delayed submission of this M&E Report is explained earlier in the Status section of this ISR. 1/22/2018 Page 3 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Financial Sector Support Project (P150938) 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 -- 12-Jul-2017 30-Sep-2020 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 -- 12-Jul-2017 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 0.00 500.00 Date 30-Sep-2014 12-Jul-2017 12-Jul-2017 30-Sep-2020 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 -- 12-Jul-2017 30-Sep-2020 1/22/2018 Page 4 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Financial Sector Support Project (P150938) 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 12-Jul-2017 12-Jul-2017 30-Sep-2020 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 12-Jul-2017 12-Jul-2017 30-Sep-2020 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 -- 12-Jul-2017 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 0.00 56.00 45.00 Date 30-Sep-2014 30-Sep-2015 12-Jul-2017 30-Sep-2020 1/22/2018 Page 5 of 8 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 32.00 32.00 10.00 Date 30-Sep-2014 12-Jul-2017 12-Jul-2017 30-Sep-2020 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 -- 12-Jul-2017 30-Sep-2020 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 12-Jul-2017 12-Jul-2017 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 12-Jul-2017 12-Jul-2017 30-Sep-2020 1/22/2018 Page 6 of 8 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 12-Jul-2017 12-Jul-2017 30-Sep-2020 Overall Comments Please note that this ISR does not report on the update on the results indicators. BB is expected to submit its M&E report to us in another 22 working days, and the accurate picture of the results and project performance will then be updated into the system for record and management's attention. BB's delayed submission of this M&E Report is explained earlier in the Status section of this ISR. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P150938 IDA-56640 Effective USD 300.00 300.00 0.00 153.27 145.30 51% 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 1/22/2018 Page 7 of 8 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. 1/22/2018 Page 8 of 8 Public Disclosure Copy