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: 9 | ARCHIVED on 17-Jan-2020 | ISR40231 | Implementing Agencies: The People's Republic 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: 19-Mar-2018 Original Closing Date: 30-Sep-2020 Revised Closing Date: 30-Sep-2020 pdoTable 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 Components Table Name Strengthening Financial Market Infrastructure:(Cost $38.50 M) Strengthening Regulatory Capacity:(Cost $5.00 M) Supporting Long Term Finance:(Cost $304.00 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 Implementation Status and Key Decisions Overall disbursement is satisfactory, but progress with the results has been mixed. The PDO indicator progress on long-term finance and electronic payments has been good, but progress on banking supervision continues to be a challenge. Intermediate indicators, linked to training and sub-loans have been performing well, but those related to payments systems and banking circular require attention. The progress with the line of credit indicates that the project fills in an important market gap in access to long-term finance in foreign exchange for the private manufacturing firms. The disbursement status is at 91 percent of total IDA loan amount and has been driven by Component 3’s long-term finance sub-loans (IDA disbursement of US$253 mln for sub loans to 51 projects). There is also notable progress on IT and consulting packages. The project was recently 1/17/2020 Page 1 of 6 The World Bank Implementation Status & Results Report Financial Sector Support Project (P150938) restructured, including a reallocation of project funds among disbursement categories and a change to the Results Framework. The authorities requested, by letter on November 12, 2019, a project extension to allow time for critical IT packages to be procured and installed. 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 Substantial Substantial Stakeholders Low Low Low Other -- -- -- Overall Moderate Moderate Moderate Results PDO Indicators by Objectives / Outcomes Improve financial sector efficiency IN00792282 ►Percentage of Government Payments by value processed through electronic means (annually) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 66.00 73.00 40.00 Date 30-Sep-2014 28-Jun-2019 31-Dec-2019 30-Sep-2020 IN00792283 ►Uptime of the total core systems of the BB - core banking, payment systems, credit reporting system, and MI module (%) (Percentage) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 95.00 97.00 95.00 98.00 1/17/2020 Page 2 of 6 The World Bank Implementation Status & Results Report Financial Sector Support Project (P150938) Date 30-Sep-2014 28-Jun-2019 31-Dec-2019 30-Sep-2020 IN00792284 ►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 5.00 5.00 8.00 Date 30-Sep-2009 28-Jun-2019 31-Dec-2019 30-Sep-2020 5 Compliant. This has been revised in the aftermath of the FSAP. The end target will be assessed Comments: in a year with an independent review. IN00792285 ►Outstanding FX Long term loans of Participating Financial Institutions (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 300.00 760.00 780.00 550.00 Date 30-Sep-2014 28-Dec-2018 31-Dec-2019 30-Sep-2014 Intermediate Results Indicators by Components Strengthening Financial Market Stability, Inclusion, and Long Term Finance IN00792296 ►High level of operational reliability as measured by improved compliance of BB with the Principle 17 of the CPSS – IOSCO Principles for Financial Markets Infrastructure (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N/A N/A N/A Observed. Date 30-Sep-2014 28-Jun-2019 31-Dec-2019 30-Sep-2020 IN00792297 ►Cumulative number of Bangladesh Bank banking supervision officers trained on risk-based supervision (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 180.00 300.00 Date 30-Sep-2014 28-Jun-2019 31-Dec-2019 30-Sep-2020 Knowledge sharing sessions on 'Risk Based Supervision' have been arranged with the Centre for Banking Studies, Central Bank of Sri Lanka, to train 100 officials in four batches in 2018 - March Comments: 19-23, May 21-25, June 18-22, July 16-20. IN00792298 ►Circular on prompt corrective action issued by BB (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Not initiated Not initiated Circular issued Date 30-Sep-2014 28-Jun-2019 31-Dec-2019 30-Sep-2020 1/17/2020 Page 3 of 6 The World Bank Implementation Status & Results Report Financial Sector Support Project (P150938) Department of off-site supervision has 'Problem Bank Monitoring Section' and 'Observer Cell' to take prompt corrective actions for banks which have deficiency in 'Corporate Governance' and/or Comments: which have CAMELS rating less than or equal to 4. IN00792299 ►Direct project beneficiaries (firms) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 51.00 53.00 55.00 Date 30-Sep-2014 28-Jun-2019 31-Dec-2019 30-Sep-2020 IN00792300 ►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 28-Jun-2019 31-Dec-2019 30-Sep-2020 IN00792301 ►Number of PFIs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 31.00 31.00 10.00 Date 30-Sep-2014 28-Jun-2019 31-Dec-2019 30-Sep-2020 IN00792302 ►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 0.00 254.00 254.00 45.00 Date 30-Sep-2014 28-Jun-2019 31-Dec-2019 30-Sep-2020 Based on market demand for the workshops and prevailing conditions BB trained more than the Comments: target. Also, the PFI itself has increased from 10 to 31 that added more participants. IN00792303 ►Cumulative number of participants and trainees at Training Of Trainers (TOT) and other workshops delivered to industry on safeguards and health and safety (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 25.00 66.00 50.00 Date 30-Sep-2014 28-Jun-2019 31-Dec-2019 30-Sep-2020 More trainings planned for future. Comments: IN00792304 ►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 92.00 92.00 75.00 1/17/2020 Page 4 of 6 The World Bank Implementation Status & Results Report Financial Sector Support Project (P150938) Date 30-Sep-2014 28-Jun-2019 31-Dec-2019 30-Sep-2020 The survey feedback from beneficiaries was completed in January, 2019. The results show a high Comments: percent of companies and PFI's that are content with the long-term financing instrument. 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 0.00 273.27 23.58 92% 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 1/17/2020 Page 5 of 6 The World Bank Implementation Status & Results Report Financial Sector Support Project (P150938) Restructuring History Level 2 Approved on 23-Oct-2019 Related Project(s) There are no related projects. 1/17/2020 Page 6 of 6