Implementation Status & Results Bangladesh Bangladesh Central Bank Strengthening Project (P062916)

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized The World Bank Implementation Status & Results Bangladesh Bangladesh Central Bank Strengthening Project (P062916) Operation Name: Bangladesh Central Bank Strengthening Project (P062916) Project Stage: Implementation Seq.No: 19 Status: ARCHIVED Archive : 22-Dec-2012 Country: Bangladesh Approval FY: 2003 Product Line: IBRD/IDA Region: SOUTH ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Bangladesh Bank Key s Board Approval 19-Jun-2003 Original Closing 31-Dec-2007 Planned Mid Term Review 15-Jul-2007 Last Archived ISR 06-Jul-2012 Effectiveness 28-Sep-2003 Revised Closing Actual Mid Term Review 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 Component(s) No losure Authorized Public Disclosure Authorized Component Name Component Cost I. STRENGTHENING THE LEGAL FRAMEWORK 0.98 FUNCTIONAL REORGANIZATION 3.85 AUTOMATION HUMAN RESOURCES DEVELOPMENT 3.57 STRENGTHENING RESEARCH DEPARTMENT 0.60 STRENGTHENING PRUDENTIAL REGULATIONS & SUPERVISION 0.45 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 Unsatisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Overall Risk Rating Page 1 of 9

2 Implementation Status Overview This constituted the last supervision mission for the Central Bank Strengthening Project before its closing. A lot of progress has been made in the implementation of the National Payments Switch, which is now expected to go "Live" by the end of this year. The PDO has been achieved to a good extent, with the exception of the Performance Indicators relating to the Strengthening of the Legal Framework, Functional Reorganization, Human Resource Development, the Strengthening of the Prudential Regulations and Supervision, and Monitoring and Evaluation that have not been met. 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 Yes Yes Yes 27-Dec-2009 BB does not have ERP ERP is fully functional at BB. ERP fully functional at BB. system. All HR functions, such as, recruitment, transfer, promotion, payroll and Provident Fund Management are done through HR module of SAP. Financial management and accounting are done through FICO module of SAP. All procurement, and maintenance of asset inventory are done through MM module of SAP. Regular Financial Statements are generated from ERP and book closingis completed in SAP. Acceptance and implementation of Banking Yes/No Value Yes Yes Yes Application by BB 27-Dec-2009 BB does not have Banking Application system. The Banking application is fully functional at BB. The Core Banking solution is used for: all banking transactions of Banking application fully functional at BB Page 2 of 9

3 Acceptance and implementation of Data Warehouse by BB Intermediate Results Indicators government,banks and financial institutions; Reserve Management; vault operation and cash management; and sale, encashment, coupon payment, andreimbursement of all government Savings Certificates. The Treasury module is used for international reserve management; and the Market Infrastructure module is used for: auction; secondary sale and purchase; REPO; Reverse REPO; security transfer; and fund settlement. Electronic fund transfer operation for government salary payments has started for 1,611 officials of 17 ministries includingthe Prime Minister's Office. Yes/No Value Yes Yes Yes 27-Dec-2009 BB does not have any Data Warehouse. Enterprise Data Warehouse (EDW) is fully operational at BB. Banks are submitting all the returns and reports through online web-based application of EDW. All other financial institutions are submitting their returns via Rationalized Input Templates directly through the web portal. Many reports are currently generated from this application. A Dashboard has been developed with key indicators so that management can get a compact view of the financial sector. Data Warehouse fully functional at BB. Page 3 of 9

4 Indicator Name Core Unit of Measure Baseline Current End Target Key staff in computer department receive adequate training. Text Value Inadequte training programs and facilities. 04-May-2003 A regular computer training program, as a mandatory course, has been scheduled at the BB Training Academy for all staff. Training on all the IT packages has been made mandatory in the course curriculum of Foundation Course of BBTA for all new staff joining BB. All the IT packages included training of key staff in the IT Department of BB. Moreover, 30 BB officials participated in overseas training on ERP. 265 officials were trained as end users and TOT for ERP. 50 officials from IT Department and 50 from business departments were trained on EDW. 135 business users and IT officials have been trained on the Banking package. Overseas training continues to be imparted on ERP, Banking, EDW, and networking. BB work processes fully automated. Text Value Manual work processes in BB. Implementation of BB automation completed with all the major work processes being performed in an automated environment. 04-May-2003 All the IT contracts have been implemented, except for the National Payment Switch which is expected to "go Live" by end of December More than 3,500 officials are now connected in the network and have access to BB Continuous training ensured through a regular computer training program. 29-Dec-2012 Implementation of BB automation component well advanced Page 4 of 9

5 Modern HR policies adopted. Text Value Outdated and archaic HR policies in BB. 04-May-2003 A modern performance management system in place. Quality research reports on vital issues prepared and disseminated by BB. Text Value Outdated performance management system (PMS) in place. 04-May-2003 Text Value Research reports not up to the mark. Intranet and webmail. All the BB branchesare now connected under the same network. Printing of circulars and office orders have already been stopped and are posted in the Intranet. BB is now using e-tendering for its own procurement. Electronic Fund Transfer Network is fully operational. HR policies have been revised and modernized. BB is using the newly developed application forms for recruitment of AD. A new promotion policy and a Recognition and Reward policyhave been adopted by BB, along with a modern PMS. A Recreation Leave Policy has been implemented as a "quick win." A modern Performance Management System (PMS) has been put in place from April The annual performance appraisal is now being conducted through PMS. BB Managers are not yet fully conversant with this process. Acompetency model has also been introduced. A Chief Economist Office has been set up and headed by an ex-world Bank staff, to conduct quality research on vital issues and disseminate them adequately. HR policies modernized Modern performance management system adopted and practised. 04-May-2003 Policy Analysis Unit staffed to carry out quality research. Page 5 of 9

6 Bank supervisory policy manual upgraded. Text Value Outdated supervisory policy manual. Timely and accurate preparation and reporting of financial statistics, by BB by June 30, May-2003 Text Value Financial statistics are published with a lag of one to two years. 04-May-2003 PAU is regularly publishing policy notes, working papers, Monetary Policy Review, Bangladesh Bank Quarterly, and Financial Sector Review. The PAU has published 26 policy notes, 31 working papers on various monetary, fiscal and development issues, 8 Monetary Policy Reviews (MPR), and 7 Financial Sector Review (FSR). Eight eminent economists from the country have been contracted to conduct research along with BB staff. A draft of the Risk-based Inspection Manual for Banking Supervision Department has been prepared and circulated for review and comments by the concerned BB teams. BB is being helped by the IMF's Resident Adviser to upgrade the bank supervisory policy manual in line with riskbased supervision framework. The lag in reporting of most of the financial statistics has been brought down to less than three months as banks and financial institutions are now submitting data, information, statements and returns through the web portal. Almost all the banks have made the changes in their systems to generate data in Upgraded manuals adopted and practised. The lag in reporting of financial statistics brought down to three months. Page 6 of 9

7 Timely and accurate accounting and reporting of government accounts and securities, by June 30, Timely and accurate submission of prudential returns, by FIs and better management of foreign exchange, by BB by June 30, 2012 Text Value The process of accounting and reporting of government accounts at BB are manual. 26-Apr-2010 Banking and ERP systems are now under implementation, and these systems will support BB to prepare timely and accurate financial statistics. Text Value The process of submission of prudential returns by FIs are manual. Foreign exchange management is also done manually. 26-Apr-2010 These processes will be automated through the implementation of Datawarehose and ERP systems. the required format for submission through the online Rationalized Input Templates (RIT). Banks and financial institutions have stopped submitting hard copies of returns and statements from November 2012, and reporting of financial statistics is fully automated now. Reporting of government accounts and securities are now timely and accurate. All the government transactions are now being processed through the Banking Application package, and the daily debit and credit scrolls of the government accounts are shared with the government in electronic form at the end of the day. The financial institutions are submitting their prudential reforms on a timely basis through the web portal. Reserve Management has improved. All the financial institutions (FIs) are submitting the prudential returns via Rationalized Input Templates directly to BB through the web portal. The Treasury Module under Core Banking Solution is used to better manage foreign exchange reserves. Timely and accurate accounting and reporting of government accounts and securities Timely and accurate submission of prudential returns, by FIs and better management of foreign exchange. Page 7 of 9

8 Systems installed in BB to capture and share data on AML/CFT, by June 30, 2012 Text Value Systems are manual at this stage. 26-Apr-2010 Installation of AML/CFT systems would wait till BB installs all its IT packages and make them functional for BB's efficient functioning. The Financial Intelligence Unit (FIU) at BB is receiving Suspicious Transaction Reports (STRs) and Cash Transaction Reports (CTRs) from the banks, financial institutions and securities firms. The "goaml" software to analyze the STRs and CTRs has been installed byunodc in a test environment. Customization of the "goaml" software is being carried out by UNODC in a test environment. Procurement of additional hardware including servers has been initiated and the hardware is expected to be delivered in December The customized software will be transferred to the dedicated servers in December Systems installed in BB to capture and share data on AML/CFT. Data on Financial Performance (as of 31-Oct-2012) Financial Agreement(s) Key s Project Ln/Cr/Tf Status Approval Signing Effectiveness Original Closing Revised Closing P IDA Effective 19-Jun Jun Sep Dec-2007 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P IDA Effective XDR Disbursement Graph Page 8 of 9

9 Key Decisions Regarding Implementation The IDA project is scheduled to end on December 31, The project closure will be followed by an independent assessment of the results of the project, to be made public within eight months of project's closing. To help establish the possible impact of the project, a Beneficiaries' Survey will be launched early in the calendar year. Restructuring History Board Approved on 27-Jul-2009, Level two Approved on 20-Mar-2011 Related Projects There are no related projects. Page 9 of 9