The World Bank Implementation Status & Results Report Strengthening the Capacity of Regional Financial Institutions in the CEMAC Region (P161368) Strengthening the Capacity of Regional Financial Institutions in the CEMAC Region (P161368) AFRICA | Africa | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2018 | Seq No: 3 | ARCHIVED on 23-Sep-2019 | ISR38505 | Implementing Agencies: Commission Bancaire de l'Afrique Centrale - COBAC, Groupe d' Action contre le Blanchiment d' Argent en Afrique Centrale (GABAC), Banque des Etats de l'Afrique Centrale (BEAC) Key Dates Key Project Dates Bank Approval Date: 04-May-2018 Effectiveness Date: 24-Oct-2018 Planned Mid Term Review Date: -- Actual Mid-Term Review Date: Original Closing Date: 04-Jul-2023 Revised Closing Date: 04-Jul-2023 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to strengthen the capacity of selected CEMAC regional financial institutions to implement their mandates in the areas of financial stability, inclusion and integrity. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1. Strengthening the Capacity of BEAC and COBAC to Implement their Financial Stability Mandate:(Cost $12.00 M) Component 2: Strengthening the Capacity of BEAC and COBAC to implement their Financial Inclusion Mandate:(Cost $14.00 M) Component 3: Strengthening Capacity of GABAC to Implement its Financial Integrity Mandate:(Cost $4.00 M) Component 4: Supporting Selected Reforms through Results Based Financing:(Cost $2.00 M) Component 5: Project Implementation:(Cost $3.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO ►Satisfactory ►Satisfactory Overall Implementation Progress (IP) ►Satisfactory ►Satisfactory Overall Risk Rating ►Substantial ►Substantial 9/23/2019 Page 1 of 7 The World Bank Implementation Status & Results Report Strengthening the Capacity of Regional Financial Institutions in the CEMAC Region (P161368) Implementation Status and Key Decisions This ISR is filed based on the findings of the implementation support mission that visited Yaoundé in May 2019 and subsequent visits July and August 2019. Progress towards achievement of PDO and overall implementation progress remain satisfactory. Almost a year after effectiveness, the Strengthening the Capacity of Regional Financial Institutions in the CEMAC Region project is currently on track to meet its development objectives. More than 20 preparatory studies have been launched over the last 6 months. The project is also starting to show some positive results. The first intermediate indicator was recently met (adoption of credit bureau legislation). A significant number of activities including implementation of IFRS standards; internal controls reform; private credit bureau and foreign exchange regulations; credit registry modernization; statistics and national risk assessments (NRAs), payment systems have already been launched and tangible results are expected in the next six months. Both private credit bureau and foreign exchange regulations were approved by BEAC’s board in December 2018 and became effective in May 2019. Other activities that were reported with delays in the previous ISR have progressed well. The TORs for the diagnostic of payments systems infrastructure have been launched. The statistical component is also progressing, and a 4-week workshop was organized in June-July 2019 with different stakeholders for the design of the business environment indicator (ICAE). The fiduciary performance of the project is moderately satisfactory and no major issues have been reported as of today. Client counterparts have been supported with two implementation supports missions to Yaoundé (May and August 2019) and one technical mission to support the statistical component (July 2019). The next implementation support mission is expected to take place in December 2019. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance ►Substantial ►Substantial ►Substantial Macroeconomic ►High ►High ►High Sector Strategies and Policies ►Low ►Low ►Low Technical Design of Project or Program ►Moderate ►Moderate ►Moderate Institutional Capacity for Implementation and Sustainability ►Substantial ►Substantial ►Substantial Fiduciary ►Substantial ►Substantial ►Substantial Environment and Social ►Low ►Low ►Low Stakeholders ►Moderate ►Moderate ►Moderate Other -- -- -- Overall ►Substantial ►Substantial ►Substantial Results PDO Indicators by Objectives / Outcomes Increase the capacity of CEMAC regional financial institutions IN00742313 9/23/2019 Page 2 of 7 The World Bank Implementation Status & Results Report Strengthening the Capacity of Regional Financial Institutions in the CEMAC Region (P161368) ►Increased capacity of COBAC to supervise banks under new risk based supervision framework. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 03-Jul-2018 15-Mar-2019 13-Sep-2019 03-Jul-2023 IN00742314 ►Increased capacity of BEAC to produce reliable financial, monetary and economic statistics on a monthly basis. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Data updated and Value No data published No data published No data published published every month Date 02-Apr-2018 15-Mar-2019 13-Sep-2019 03-Jul-2023 IN00742315 ►Increased capacity of BEAC to expand the population coverage of the regional credit registry. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.00 Date 03-Jul-2018 15-Mar-2019 13-Sep-2019 03-Jul-2023 IN00742386 ►Increased capacity of BEAC to expand the female population's coverage of the regional credit registry. (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 12.00 IN00742387 ►Increased capacity of GABAC to comply with the FATF membership requirements. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Yes Yes Yes Yes Date 02-Jul-2018 15-Mar-2019 13-Sep-2019 03-Jul-2023 Intermediate Results Indicators by Components Component 1. Strengthening the Capacity of BEAC and COBAC to Implement their Financial Stability Mandate IN00742388 ►The Composite Index of Economic Activity is computed based on date from 6 countries and published on a quarterly basis. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target CIEA is compiled with date from 6 countries and Value No data published No data No data published on a quarterly basis 9/23/2019 Page 3 of 7 The World Bank Implementation Status & Results Report Strengthening the Capacity of Regional Financial Institutions in the CEMAC Region (P161368) Date 02-Jul-2018 15-Mar-2019 13-Sep-2019 03-Jul-2023 IN00742392 ►BEAC to prepare financial statements in compliance with IFRS standards by year 2 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 03-Jul-2018 15-Mar-2019 13-Sep-2019 03-Jul-2023 IN00742396 ►Adoption of an operations manual outlining key FOGADAC's responsabilities, procedures and relevant documentation for the rapid an effective resolution of a failing bank by year 3 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 03-Jul-2018 15-Mar-2019 13-Sep-2019 03-Jul-2023 IN00742398 ►Implement risk based supervision for MFIs by Year 3 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 03-Jul-2018 15-Mar-2019 13-Sep-2019 03-Jul-2023 IN00742400 ►Migrate MFI data from SESAME to CERBER system by year 2 (Yes/No, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 03-Jul-2018 15-Mar-2019 13-Sep-2019 03-Jul-2023 IN00742402 ►Develop methodologies, procedures and systems to conduct risk based supervision by year 2 (Yes/No, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 03-Jul-2018 15-Mar-2019 13-Sep-2019 03-Jul-2023 IN00742403 ►Produce reports and dashboards with KPI on MFI performance by year 3 (Yes/No, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes IN00742404 ►Assess MFIs financial conditions under the new risk based framework (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 9/23/2019 Page 4 of 7 The World Bank Implementation Status & Results Report Strengthening the Capacity of Regional Financial Institutions in the CEMAC Region (P161368) Date 03-Jul-2018 15-Mar-2019 13-Sep-2019 03-Jul-2023 Component 2: Strengthening the Capacity of BEAC and COBAC to implement their Financial Inclusion Mandate IN00742389 ►Updated regulations for issuing and processing emoney by year 2 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 02-Jul-2018 15-Mar-2019 13-Sep-2019 03-Jul-2023 IN00742393 ►Regional financial inclusion task force created by year 2 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 02-Jul-2018 15-Mar-2019 13-Sep-2019 03-Jul-2023 IN00742397 ►Financial inclusion indicators produced and published by year 3 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 02-Jul-2018 15-Mar-2019 13-Sep-2019 03-Jul-2023 IN00742399 ►Conduct at least 2 innovative pilots in selected economies (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 Date 03-Jul-2018 15-Mar-2019 13-Sep-2019 03-Jul-2023 IN00742401 ►Percentage of women amongst the new financial services users reached through innovative pilots in selected countries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Component 3: Strengthening Capacity of GABAC to Implement its Financial Integrity Mandate IN00742390 ►Number of staff trained to carry out mutual evaluations by year 2 (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.00 9/23/2019 Page 5 of 7 The World Bank Implementation Status & Results Report Strengthening the Capacity of Regional Financial Institutions in the CEMAC Region (P161368) Date 02-Jul-2018 15-Mar-2019 13-Sep-2019 03-Jul-2023 IN00742394 ►Number of mutual evaluations carried out in CEMAC member countries using the revised FATF methodology (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 6.00 Date 02-Jul-2018 15-Mar-2019 13-Sep-2019 03-Jul-2023 Component 4: Supporting selected reforms through results based financing IN00742391 ►Adopt credit bureau law by year 2 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No Yes Yes Date 15-Mar-2019 05-Sep-2018 03-Jun-2019 03-Jul-2023 IN00742395 ►Private credit bureau operator selected by year 4 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 15-Mar-2019 05-Sep-2018 13-Sep-2019 03-Jul-2023 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P161368 IDA-62290 Effective USD 25.00 25.00 0.00 1.86 22.19 7.7% P161368 IDA-D3030 Effective USD 10.00 10.00 0.00 1.66 8.09 17% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P161368 IDA-62290 Effective 04-May-2018 26-Jul-2018 24-Oct-2018 04-Jul-2023 04-Jul-2023 P161368 IDA-D3030 Effective 04-May-2018 26-Jul-2018 24-Oct-2018 04-Jul-2023 04-Jul-2023 9/23/2019 Page 6 of 7 The World Bank Implementation Status & Results Report Strengthening the Capacity of Regional Financial Institutions in the CEMAC Region (P161368) Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 9/23/2019 Page 7 of 7