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: 4 | ARCHIVED on 19-Jul-2017 | ISR29080 | 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 7/19/2017 Page 1 of 10 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 now at the final stage. The Line of Credit for Long Term Financing for the manufacturing sector has been performing very well with a strong pipeline of subprojects. 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 15.00 40.00 Date 30-Sep-2014 30-Sep-2016 12-Jul-2017 30-Sep-2020 Comments Approximate figure received from FSSPD. Updated actual amount is expected to be received from BB by Sept 3o. 7/19/2017 Page 2 of 10 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 30-Sep-2016 12-Jul-2017 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 12-Jul-2017 23-Sep-2020 Comments The activities related to this result indicator are 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 4.00 12.00 Date 30-Sep-2009 30-Sep-2016 12-Jul-2017 30-Sep-2020 7/19/2017 Page 3 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Financial Sector Support Project (P150938) Comments The activities related to this result indicator will be initiated from July 2017. 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 29-Sep-2015 12-Jul-2017 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 but it is expected that progress is satisfactory. Overall Comments The M&E expert hired did not deliver well, and hence the delay in BB's submitting an evaluation report. BB has been requested to submit the Report by Sept 30, 2017. 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 -- 12-Jul-2017 30-Sep-2020 7/19/2017 Page 4 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Financial Sector Support Project (P150938) Comments Not due yet. 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 Comments The next ISR will have the updated number. 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 30-Sep-2016 12-Jul-2017 30-Sep-2020 Comments The activity on this is yet to start. 7/19/2017 Page 5 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Financial Sector Support Project (P150938) 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 Comments The activity on this 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 12-Jul-2017 30-Sep-2020 Comments This activity is being supported partly by DFID through a BFID project, and thus the project is requested to complement DFID’s tasks. The Task Team is now in discussion with DFID and its Program to see the scope of the project’s engagement. 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-2016 12-Jul-2017 30-Sep-2020 Comments Beneficiary survey yet to be conducted. 7/19/2017 Page 6 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Financial Sector Support Project (P150938) 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 Comments The procurement process is ongoing for achieving this result. 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 Comments Achieved. PHINDIRITBL  Number of PFIs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 28.00 32.00 10.00 Date 30-Sep-2014 30-Sep-2016 12-Jul-2017 30-Sep-2020 7/19/2017 Page 7 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Financial Sector Support Project (P150938) 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 Comments BB is expected to send a report by Sept 30 will actual numbers. 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 12-Jul-2017 30-Sep-2020 Comments Activities concerning this have not been started. 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 30-Sep-2016 12-Jul-2017 30-Sep-2020 Comments No NPL has been reported so far by any PFIs. Hence achievement on this indicator is excellent. 7/19/2017 Page 8 of 10 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 30-Sep-2016 12-Jul-2017 30-Sep-2020 Comments Not due yet. Overall Comments BB hired an M&E specialist who did not deliver well, and thus BB failed to submit its M&E report to us highlighting only those results that were targeted to be achieved in the first two years through the project. Also, many of the project activities were put on hold by BB leadership post BB heist. Now it has been agreed with BB that it will send its report on project results and indicators by Sept 30, 2017. The Steering Committee for FSSP met recently and provided necessary guidance and advice, and thus all the deferred project activities are expected to begin with full speed now. The task team is thus expected to 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 USD 300.00 300.00 0.00 108.23 186.39 36% 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 7/19/2017 Page 9 of 10 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. 7/19/2017 Page 10 of 10 Public Disclosure Copy