Public Disclosure Copy The World Bank Implementation Status & Results Report Philippines First Financial Sector Reform Development Policy Financing (P175008) Philippines First Financial Sector Reform Development Policy Financing (P175008) EAST ASIA AND PACIFIC | Philippines | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Development Policy Lending | FY 2021 | Seq No: 1 | ARCHIVED on 26-Jun-2022 | ISR51607 | Implementing Agencies: Department of Finance, Republic of the Philippines Key Dates Key Project Dates Bank Approval Date: 24-Jun-2021 Effectiveness Date: 25-Aug-2021 Original Closing Date: 30-Jun-2022 Revised Closing Date: 30-Jun-2022 pdoTable Project Development Objectives Program Development Objective (from Program Document) The program development objective of this programmatic operation is to support financial sector reforms that will assist the Government of the Philippines in achieving a resilient, inclusive and sustainable financial sector. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO -- Satisfactory Overall Implementation Progress (IP) -- Satisfactory Overall Risk Rating -- Substantial Implementation Status and Key Decisions The Philippines first Financial Sector Reform Development Policy Loan (DPL) consists of three pillars to support the Government of the Philippines in i) strengthening financial sector stability, integrity, and resilience, ii) expanding financial inclusion for individuals and firms, and iii) catalyzing climate and disaster risk and sustainable finance. Overall strong implementation progress has been achieved across the three reform pillars. The second Financial Sector Reform DPL is currently under preparation and is expected to be approved in FY23. The proposed operation builds on the reform agenda initiated under the first development policy loan and focuses on continuity of reform implementation that will span across the forthcoming political transition. Importantly, the key policy reforms under the DPL series are underpinned by strong and comprehensive World Bank engagement through technical assistance under the Financial Sector Programmatic ASA and are informed by the recommendations of the joint IMF-Word Bank Financial Sector Assessment Program (FSAP) Update completed in 2020. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating 6/26/2022 Page 1 of 4 Public Disclosure Copy The World Bank Implementation Status & Results Report Philippines First Financial Sector Reform Development Policy Financing (P175008) Political and Governance Substantial -- Substantial Macroeconomic Substantial -- Substantial Sector Strategies and Policies Substantial -- Substantial Technical Design of Project or Program Moderate -- Moderate Institutional Capacity for Implementation and Moderate -- Moderate Sustainability Fiduciary Moderate -- Moderate Environment and Social Moderate -- Moderate Stakeholders Moderate -- Moderate Other Moderate -- Moderate Overall Substantial -- Substantial Results Results Indicators Strengthening Financial Sector Stability, Integrity, and Resilience IN01161440 ►The Anti-Money-Laundering Council (AMLC) has registered real estate developers and brokers to implement applicable AML/CFT requirements. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 50.00 Date 31-Dec-2020 -- 31-Mar-2022 29-Dec-2023 IN01161511 ►The AMLC has completed money-laundering investigations where tax crime is the underlying offense based on the Bureau of Internal Revenue (BIR) reference of tax evasion cases to AMLC (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 8.00 Date 31-Dec-2020 -- 31-Mar-2022 29-Dec-2023 IN01161512 ►Number of Domestic Systemically Important Banks (D-SIBs) complying with updated requirements of the Bangko Sentral ng Pilipinas (BSP) on consolidated supervision (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 13.00 Date 31-Dec-2020 -- 31-Mar-2022 29-Dec-2023 IN01161475 ►Percentage of nonlife insurance companies adopting an Own Risk and Solvency Assessment (ORSA)-like tool (including one to address climate-related risks) and disclosure requirements (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/26/2022 Page 2 of 4 Public Disclosure Copy The World Bank Implementation Status & Results Report Philippines First Financial Sector Reform Development Policy Financing (P175008) Value 0.00 -- 0.00 50.00 Date 31-Dec-2020 -- 31-Mar-2022 29-Dec-2023 IN01161516 ►Percentage increase in the number of outstanding listed corporate debt securities (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 10.00 Date 31-Dec-2020 -- 31-Mar-2022 29-Dec-2023 IN01163828 ►Number of supervised financial institutions with BSP-approved recovery plans (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 13.00 Date 31-Dec-2020 -- 31-Mar-2022 29-Dec-2023 Expanding Financial Inclusion for Individuals and Firms IN01161517 ►Percentage of universal banks, commercial banks, digital banks and electronic money issuers that offer services to customers based on Open APIs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 20.00 Date 31-Dec-2020 -- 31-Mar-2022 29-Dec-2023 IN01161518 ►Percentage of Universal Banks and Commercial Banks complying with BSP implementing regulation to effectively implement financial consumer protection (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 75.00 Date 31-Dec-2020 -- 31-Mar-2022 29-Dec-2023 IN01161519 ►The launch of a credit scoring model using financial statements of subject SMEs submitted by participating financial institutions (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 1.00 Date 31-Dec-2020 -- 31-Mar-2022 29-Dec-2023 Catalyzing Climate and Disaster Risk and Sustainable Finance IN01161520 6/26/2022 Page 3 of 4 Public Disclosure Copy The World Bank Implementation Status & Results Report Philippines First Financial Sector Reform Development Policy Financing (P175008) ►Percentage of the catastrophe and climate risk exposure covered by the Philippines Catastrophe Insurance Facility (PCIF) from its establishment (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 100.00 Date 31-Dec-2020 -- 31-Mar-2022 29-Dec-2023 IN01161521 ►Number of supervised financial institutions complying with BSP requirements on climate risk stress testing, governance, and disclosure (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 13.00 Date 31-Dec-2020 -- 31-Mar-2022 29-Dec-2023 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P175008 IBRD-92750 Effective USD 400.00 400.00 0.00 400.00 0.00 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P175008 IBRD-92750 Effective 24-Jun-2021 19-Jul-2021 25-Aug-2021 30-Jun-2022 30-Jun-2022 Tranches Restructuring History There has been no restructuring to date. Related Project(s) P175360-Philippines Second Financial Sector Reform Development Policy Financing 6/26/2022 Page 4 of 4