Modernizing Afghan State-Owned Banks Project

Abstract*

The development objective of the Modernizing Afghan State-Owned Banks Project for Afghanistan is to enhance the corporate governance and operational efficiency of the supported Afghan state‐owned banks (SBs), thereby contributing to their improved financial soundness and outreach. The project comprises of three components. The first component, improving Ministry of Finance (MOF’s) ownership role and the corporate governance of SBs will support MoF... Show More

Development Objective

The proposed project development objective is to enhance the corporate governance and operational efficiency of the supported Afghan state-owned banks, thereby contributing to their improved financial soundness and outreach.

Key Details

Project Details

Project ID
P161348
Status
Closed
Team Leader
Andrej Popovic
Borrower 2
ISLAMIC REPUBLIC OF AFGHANISTAN

Country
Afghanistan
Disclosure Date
November 22, 2016
Approval Date
(as of board presentation)
March 28, 2018
Effective Date
April 10, 2018

Total Project Cost 1
US$ 40.00 million
Implementing Agency
Ministry of Finance
Region
Middle East, North Africa, Afghanistan, and Pakistan
Fiscal Year 3
2018

Commitment Amount
US$ 40.00 million
Environmental Category
C
Environmental and Social Risk
Not Applicable
Closing Date
June 30, 2026

Consultant Services required
Yes
Last Stage Reached
BANK APPROVED
Last Update Date
December 10, 2021

Notes
1. Total project cost includes funding from World Bank and non-bank sources in US$ millions. Active and Closed projects show current commitments. Proposed (pipeline) and dropped projects show the forecast amount. The commitment amount for projects in the pipeline is indicative and may be modified during the project preparation.
2. Borrower refers to the Borrower of a Loan or Recipient of a Grant.
3. ”Fiscal Year” is the fiscal year in which the project was approved (or dropped if the status is dropped). The World Bank's fiscal year is from July 1 - June 30. For example, a fiscal year of 1996 corresponds to July 1, 1995 - June 30, 1996.

Sectors

Themes

FY17 - Finance

FY17 - Financial Stability100%
- FY17 - Financial Sector oversight and policy/banking regulation & restructuring100%

FY17 - Private Sector Development

FY17 - ICT62%
- FY17 - ICT Solutions62%

Project Map

Interactive Map

Finances

Financing Plan (US$ Millions)

Financier	Commitments
IDA Grant	40.00

Total Project Financing (US$ Millions)

Product Line	IBRD/IDA
IBRD Commitment	N/A
IDA Commitment	40.00
IBRD + IDA Commitment	40.00

Lending Instrument
Grant Amount	N/A
Total Project Cost**	40.00

Summary Status of World Bank Financing (US$ Millions) as of June 30, 2025

No data available.

Detailed Financial Activity as of June 30, 2025

Download:

Period	Financier	Transaction Type	Amount (US$)
Mar 28, 2018	IDA-D2830	Loan Commitment	40,000,000.00
Feb 28, 2021	IDA-D2830	Loan Cancel	2,509,779.20
Dec 2, 2020	IDA-D2830	Loan Disb	1,360,022.20
Jun 25, 2020	IDA-D2830	Loan Cancel	28,001,018.00
Jun 24, 2019	IDA-D2830	Loan Disb	2,754,681.00
May 12, 2020	IDA-D2830	Loan Disb	-13,533.01
Sep 19, 2018	IDA-D2830	Loan Disb	1,670,661.00
Aug 18, 2018	IDA-D2830	Loan Disb	148,459.12
Jul 27, 2020	IDA-D2830	Loan Disb	1,700,028.40

Footnotes

Ratings

IMPLEMENTATION RATINGS

Name	Review	Date
Progress towards achievement of PDO	Unsatisfactory	2021-05-10
Project Management	Moderately Unsatisfactory	2021-05-10
Financial Management	Moderately Satisfactory	2021-05-10
Monitoring and Evaluation	Moderately Satisfactory	2021-05-10
Procurement	Moderately Satisfactory	2021-05-10
Overall Implementation Progress (IP)	Unsatisfactory	2021-05-10

COMPLETION RATINGS

INDICATOR	IMPLEMENTATION COMPLETION & RESULTS REPORT: 12-10-2021
Outcomes	Unsatisfactory
Risk to Development Outcome
Bank Performance	Substantial
Borrower Performance
Government Performance
Implementing Agency

INDEPENDENT EVALUATION RATINGS

INDICATOR	ICR REVIEW:	PROJECT PERFORMANCE ASSESSMENT REPORT:
Outcome Rating	Unsatisfactory	N/a
Risk To Development Outcome		N/a
Bank Performance	Satisfactory	N/a
Borrower Performance		N/a
Government Performance	Not Rated	N/a
Implementing Agency		N/a
Icr Quality	Substantial	N/a
M&e Quality	Modest	N/a

Results Framework

PROJECT DEVELOPMENT OBJECTIVE INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

Effective Governance of SBs in line with key OECD guidelines Value Non-compliant Compliant Compliant
Date December 31, 2017 March 28, 2023 May 31, 2021
Comment
Increased outreach of SBs (measured by number of SBs clients served) Value 2206.00 3200.00 3200.00
Date June 30, 2017 March 28, 2023 May 31, 2021
Comment
Of which percentage of female clients Value 9.00 9.52 0.00
Date
Comment
Improved operational efficiency of SBs (Measured by System uptime) Value 90.00 99.00 99.00
Date June 30, 2017 March 28, 2023 May 31, 2021
Comment
Improved Financial Soundness of SBs (SBs meet the central bank's minimum capital requirements) Value 33.00 100.00 100.00
Date June 30, 2017 March 28, 2023 May 31, 2021
Comment

INTERMEDIATE RESULTS INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

All senior management functions have been filled and performance contracts in place for CEOs	Value	Vacancies in senior management functions of SBs. N	All senior management functions are filled in SBs;	All senior management functions are filled in SBs;
	Date	January 31, 2018	March 28, 2023	May 31, 2021
	Comment

Improved credit risk management policies Value No Yes Yes
Date December 31, 2017 March 28, 2023 May 31, 2021
Comment
Increase in the number of Digital Financial Services users in SBs (disaggregated by gender) Value 0.00 15.00 15.00
Date June 30, 2017 March 28, 2023 May 31, 2021
Comment
Savings in Staff time Value 0.00 50.00 50.00
Date June 30, 2017 March 28, 2023 May 31, 2021
Comment
Improved oversight capacity of MoF as per OECD Guidelines Value No ownership unit Fully operational ownership unit Fully operational ownership unit
Date June 30, 2017 March 28, 2023 May 31, 2021
Comment
Improved Soundness of SBs (Measured by average adjusted ROE) Value 3.40 10.00 10.00
Date June 30, 2017 March 28, 2023 May 31, 2021
Comment
Improved efficiency (Measured by average adjusted Operating Income Margin) Value 65.00 77.00 77.00
Date June 30, 2017 March 28, 2023 May 31, 2021
Comment
Percentage point increase in SB client satisfaction rate (disaggregated by gender) Value 0.00 15.00 15.00
Date June 30, 2017 March 28, 2023 May 31, 2021
Comment

Effective Governance of SBs in line with key OECD guidelines	Value	Non-compliant	Compliant	Compliant
	Date	December 31, 2017	March 28, 2023	May 31, 2021
	Comment

Increased outreach of SBs (measured by number of SBs clients served)	Value	2206.00	3200.00	3200.00
	Date	June 30, 2017	March 28, 2023	May 31, 2021
	Comment

Of which percentage of female clients	Value	9.00	9.52	0.00
	Date
	Comment

Improved operational efficiency of SBs (Measured by System uptime)	Value	90.00	99.00	99.00
	Date	June 30, 2017	March 28, 2023	May 31, 2021
	Comment

Improved Financial Soundness of SBs (SBs meet the central bank's minimum capital requirements)	Value	33.00	100.00	100.00
	Date	June 30, 2017	March 28, 2023	May 31, 2021
	Comment

Savings in Staff time	Value	0.00	50.00	50.00
	Date	June 30, 2017	March 28, 2023	May 31, 2021
	Comment

Improved oversight capacity of MoF as per OECD Guidelines	Value	No ownership unit	Fully operational ownership unit	Fully operational ownership unit
	Date	June 30, 2017	March 28, 2023	May 31, 2021
	Comment

Improved Soundness of SBs (Measured by average adjusted ROE)	Value	3.40	10.00	10.00
	Date	June 30, 2017	March 28, 2023	May 31, 2021
	Comment

Improved efficiency (Measured by average adjusted Operating Income Margin)	Value	65.00	77.00	77.00
	Date	June 30, 2017	March 28, 2023	May 31, 2021
	Comment