The World Bank Report No: ISR5565 Implementation Status & Results Bangladesh Bangladesh Central Bank Strengthening Project (P062916) Public Disclosure Copy Operation Name: Bangladesh Central Bank Strengthening Project (P062916) Project Stage: Implementation Seq.No: 17 Status: ARCHIVED Archive Date: 06-Jul-2011 Country: Bangladesh Approval FY: 2003 Product Line: IBRD/IDA Region: SOUTH ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Bangladesh Bank Key Dates Board Approval Date 19-Jun-2003 Original Closing Date 31-Dec-2007 Planned Mid Term Review Date 15-Jul-2007 Last Archived ISR Date 06-Jul-2011 Effectiveness Date 28-Sep-2003 Revised Closing Date 31-Dec-2011 Actual Mid Term Review Date 04-Oct-2007 Project Development Objectives Project Development Objective (from Project Appraisal Document) To achieve a strong and effective regulatory and supervisory system for Bangladesh's banking sector. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost I. STRENGTHENING THE LEGAL FRAMEWORK 0.98 FUNCTIONAL REORGANIZATION 3.85 AUTOMATION 41.90 HUMAN RESOURCES DEVELOPMENT 3.57 STRENGTHENING RESEARCH DEPARTMENT 0.60 STRENGTHENING PRUDENTIAL REGULATIONS & SUPERVISION 0.45 Public Disclosure Copy STRENGTHENING ACCOUNTING AND AUDITING 0.31 Project Implementation Unit (PIU) Support Cost 0.69 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Page 1 of 7 The World Bank Report No: ISR5565 Implementation Status Overview The pace of implementation has picked up and all three major ITpackages: ERP; Banking application;and Data Warehouse have gone Live. Moreover, all Bangladesh Bank branches are now connected to each other and also to Bangladesh Bank's Enterprise Resource Planning (ERP) and Banking systems. Moreover, the Credit Information System and the Clearing House have been automated. To achieve the project objectives fully, the full implementation of the National Payment Switch has to be accomplished which is expected Public Disclosure Copy to be complete by December 31, 2012. The likelihood of achieving the PDO is good. Locations Country First Administrative Division Location Planned Actual Bangladesh Dhaka Division Dhaka ✔ Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Acceptance and implementation of ERP by BB Yes/No Value No Yes Yes Date 27-Dec-2009 20-Dec-2011 31-Dec-2011 Comments BB does not have ERP ERP went Live on Sept 22, ERP fully functional at BB. system. 2010. The ERP package has the following three modules: Finance & Control, Materials Management and HumanResources Management. Full roll-out to all branches is expected to be complete by March 31, 2012. Acceptance and implementation of Banking Yes/No Value No Yes Yes Application by BB Date 27-Dec-2009 20-Dec-2011 31-Dec-2011 Comments BB does not have Banking The Banking application has Banking application fully Application system. three modules: Core banking; functional at BB Public Disclosure Copy Treasury; and Market Infrastructure. The Treasury module went Live on October 23, 2011, and the other two in November 2011. Funds transfer is being processed with the SWIFT file. Acceptance and implementation of Data Yes/No Value No Yes Yes Warehouse by BB Date 27-Dec-2009 20-Dec-2011 31-Dec-2011 Page 2 of 7 The World Bank Report No: ISR5565 Indicator Name Core Unit of Measure Baseline Current End Target Comments BB does not have any Data Warehouse is Data Warehouse fully datawarehouse. operational and all 208 functional at BB. Public Disclosure Copy reports are delivered and tested. First phase of training for staff of commercial banks has been completed and banks are expected to start web-based online reporting from early 2012. EDW Dashboard has been prepared for key reports. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Key staff in computer department receive Text Value Inadequte training programs Continuous training of all staff Continuous training ensured adequate training. and facilities. on IT packages and systems through a regular computer is ongoing. training program. Date 04-May-2003 20-Dec-2011 31-Dec-2011 Comments All key staff continue to receive training in specialized IT areas. The package specific training programs are ongoing. BB work processes fully automated. Text Value Manual work processes in BB. All four major IT systems, Implementation of BB which are LAN/WAN, ERP, automation component well Banking application and Data advanced Warehouse have been installed and are functional. Date 04-May-2003 20-Dec-2011 31-Dec-2011 Comments All the IT contracts have been awarded and implementation Public Disclosure Copy is almost complete. Modern HR policies adopted. Text Value Outdated and archaic HR Some HR policies have been HR policies modernized policies in BB. modernized. A new Promotion and Recognition and Reward policy has been adopted by BB. Date 04-May-2003 20-Dec-2011 31-Dec-2011 Page 3 of 7 The World Bank Report No: ISR5565 Indicator Name Core Unit of Measure Baseline Current End Target Comments BB is using the newly developed application forms Public Disclosure Copy for recruitment of AD. A new promotion policy and a Recognition and Reward policyhave been adopted by BB, along with a modern PMS. Training need assessment (TNA) of BB officials has been approved and followed. A modern performance management system in Text Value Outdated performance A new and modern Modern performance place. management system (PMS) Performance Management management system adopted in place. system has been put in place. and practised. Date 04-May-2003 20-Dec-2011 31-Dec-2009 Comments A new Performance Management system has been adopted along with a Competency Framework. The annual performance appraisal is now being conducted through PMS only. Quality research reports on vital issues Text Value Research reports not up to Good quality research papers Policy Analysis Unit staffed to prepared and disseminated by BB. the mark. are published by the carry out quality research. Research Department. A Financial Sector Stability report has been published for the first time. Date 04-May-2003 20-Dec-2011 31-Dec-2009 Comments PAU is fully functional. The PAU has published twenty six Public Disclosure Copy policy notes and thirty working papers on various Monetary, Fiscal and Development issues. Eight issues of Monetary Policy Review (MPR) and 7 Financial Sector Review (FSR) were published. Page 4 of 7 The World Bank Report No: ISR5565 Bank supervisory policy manual upgraded. Text Value Outdated supervisory policy The IMF's Resident Adviser is Upgraded manuals adopted manual. assisting BB in upgrading the and practised. bank supervisory policy manual. Public Disclosure Copy Date 04-May-2003 20-Dec-2011 31-Dec-2011 Comments Timely and accurate preparation and reporting Text Value Financial statistics are The lag in publication of The lag in reporting of of financial statistics, by BB by June 30, 2012. published with a lag of one to financial statistics has come financial statistics brought two years. down to six months in many down to three months. cases. Date 04-May-2003 20-Dec-2011 31-Dec-2011 Comments ERP and Data Warehouse systems have been implemented and these systems are supporting BB prepare timely and accurate financial statistics. Timely and accurate accounting and reporting Text Value The process of accounting Achieved. The accounting Timely and accurate of government accounts and securities, by and reporting of government and reporting of government accounting and reporting of June 30, 2012. accounts at BB are manual. accounts are timely and government accounts and accurate. securities Date 26-Apr-2010 20-Dec-2011 30-Jun-2012 Comments Banking and ERP systems ERP is Live, as also the are now under Banking Package. As the implementation, and these government accounts have systems will support BB to been automated, accounting prepare timely and accurate and reporting has become financial statistics. timely and accurate. Timely and accurate submission of prudential Text Value The process of submission of Partially achieved. FIs and Timely and accurate returns, by FIs and better management of prudential returns by FIs are banks will begin web-based submission of prudential foreign exchange, by BB by June 30, 2012 manual. Foreign exchange online submission of returns, by FIs and better Public Disclosure Copy management is also done prudential returns from management of foreign manually. January 2012. exchange. Date 26-Apr-2010 20-Dec-2011 30-Jun-2012 Comments These processes will be Data Warehouse and ERP automated through the systems have been implementation of implemented. Training of Datawarehose and ERP staff of banks and FIs have systems. been completed so that they can start submitting reports online from January 2012. Page 5 of 7 The World Bank Report No: ISR5565 Systems installed in BB to capture and share Text Value Systems are manual at this BB has decided to install the Systems installed in BB to data on AML/CFT, by June 30, 2012 stage. UN system for capturing and capture and share data on sharing data on AML/CFT. AML/CFT. Public Disclosure Copy Date 26-Apr-2010 20-Dec-2011 30-Jun-2012 Comments Installation of AML/CFT BB will be procuring the systems required systems by 2012. would wait till BB installs all its IT packages and make them functional for BB's efficient functioning. Data on Financial Performance (as of 01-Aug-2011) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P062916 IDA-37920 Effective 19-Jun-2003 30-Jun-2003 28-Sep-2003 31-Dec-2011 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P062916 IDA-37920 Effective XDR 27.20 27.20 0.00 13.70 13.50 50.00 Disbursement Graph Public Disclosure Copy Page 6 of 7 The World Bank Report No: ISR5565 Key Decisions Regarding Implementation To fully complete all of the ongoing activities, and to allow time for the implementation of the Office Layout and Modernization and the National Payment Switch, the Project is being considered for an extension of its Closing Date by twelve months to December 31, 2012. Moreover, to recognize the improvement in Project and Financial Management, and in view of the rise in disbursement levels, the rating of Implementation Progress is being upgraded to Moderately Satisfactory. Public Disclosure Copy Restructuring History Board Approved on 27-Jul-2009, Level two Approved on 20-Mar-2011 Related Projects There are no related projects. Public Disclosure Copy Page 7 of 7