Bangladesh Central Bank Strengthening Project

Abstract*

The objective of the project is to achieve a strong, and effective regulatory, and supervisory system for Bangladesh's banking sector. This would be accomplished by supporting the overall strengthening of Bangladesh Bank (BB), the central bank, to enable it to play its due role as the country's monetary authority, and bank regulator, and supervisor. The first component is made up o f the following activities:(a) Legal Counsels - would be entail engaging... Show More

Development Objective

To achieve a strong and effective regulatory and supervisory system for Bangladesh's banking sector.

Key Details

Project Details

Project ID
P062916
Status
Closed
Team Leader
Shamsuddin Ahmad
Borrower 2
N/A

Country
Bangladesh
Disclosure Date
May 10, 1999
Approval Date
(as of board presentation)
June 19, 2003
Effective Date
September 28, 2003

Total Project Cost 1
US$ 46.13 million
Implementing Agency
N/A
Region
South Asia
Fiscal Year 3
2003

Commitment Amount
US$ 37.00 million
Environmental Category
C
Environmental and Social Risk
Not Applicable
Closing Date
December 31, 2012

Last Stage Reached
BANK APPROVED
Last Update Date
January 15, 2013

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 - Economic Policy

FY17 - Trade9%
- FY17 - Trade Facilitation3%
- FY17 - Trade Logistics3%
- FY17 - Trade Policy3%

FY17 - Finance

FY17 - Financial Stability24%
- FY17 - Financial Sector Integrity12%
- FY17 - Financial Sector oversight and policy/banking regulation & restructuring12%

FY17 - Private Sector Development

FY17 - Business Enabling Environment22%
- FY17 - Regulation and Competition Policy22%
FY17 - Regional Integration3%

FY17 - Public Sector Management

FY17 - Public Administration22%
- FY17 - State-owned Enterprise Reform and Privatization22%
FY17 - Rule of Law22%
- FY17 - Legal Institutions for a Market Economy22%

Project Map

Interactive Map

Finances

Financing Plan (US$ Millions)

Financier	Commitments
IDA Credit	37.00
Borrower/Recipient	9.13

Total Project Financing (US$ Millions)

Product Line	IBRD/IDA
IBRD Commitment	N/A
IDA Commitment	37.00
IBRD + IDA Commitment	37.00

Lending Instrument
Grant Amount	N/A
Total Project Cost**	46.13

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

No data available.

Detailed Financial Activity as of April 30, 2025

Download:

Period	Financier	Transaction Type	Amount (US$)
Jun 1, 2024	IDA-37920	Loan Repay	636,815.25
Jun 1, 2024	IDA-37920	Int Charges	93,134.23
Jun 1, 2024	IDA-37920	Int Charges	93,134.23
Jun 19, 2003	IDA-37920	Loan Commitment	37,000,000.00
Dec 1, 2022	IDA-37920	Loan Repay	9,854.69
Dec 1, 2022	IDA-37920	Loan Repay	307,908.22
Dec 1, 2022	IDA-37920	Int Charges	84,821.86
Dec 1, 2022	IDA-37920	Int Charges	84,821.86
Jun 1, 2023	IDA-37920	Int Charges	97,186.88
Jun 1, 2023	IDA-37920	Int Charges	97,186.88
Jun 1, 2023	IDA-37920	Int Charges	12,979.21
Jun 1, 2023	IDA-37920	Int Charges	12,979.21
Jun 1, 2023	IDA-37920	Loan Repay	319,956.94
Dec 1, 2023	IDA-37920	Int Charges	86,590.35
Dec 1, 2021	IDA-37920	Int Charges	106,054.70
Dec 1, 2021	IDA-37920	Int Charges	106,054.70
Dec 1, 2021	IDA-37920	Int Charges	8,842.89
Dec 1, 2021	IDA-37920	Int Charges	8,842.89
Jun 1, 2022	IDA-37920	Loan Repay	320,636.16
Jun 1, 2022	IDA-37920	Int Charges	101,021.26
Jun 1, 2022	IDA-37920	Int Charges	101,021.26
Jun 1, 2022	IDA-37920	Loan Repay	3,930.14
Dec 1, 2020	IDA-37920	Int Charges	104,965.81
Dec 1, 2020	IDA-37920	Int Charges	104,965.81
Dec 1, 2020	IDA-37920	Int Charges	1,789.65
Dec 1, 2020	IDA-37920	Int Charges	1,789.65
Jun 1, 2014	IDA-37920	Loan Repay	370,040.06
Jun 1, 2014	IDA-37920	Int Charges	137,583.44
Jun 1, 2014	IDA-37920	Int Charges	137,583.44
Dec 1, 2014	IDA-37920	Loan Repay	1,573.57
Dec 1, 2014	IDA-37920	Loan Repay	350,516.66
Dec 1, 2014	IDA-37920	Int Charges	129,393.16
Dec 1, 2014	IDA-37920	Int Charges	129,393.16
Sep 3, 2013	IDA-37920	Loan Disb	-324,701.34
Sep 3, 2013	IDA-37920	Loan Cancel	4,751,079.50
Dec 1, 2013	IDA-37920	Int Charges	139,292.12
Dec 1, 2013	IDA-37920	Int Charges	139,292.12
Dec 1, 2013	IDA-37920	Int Charges	1,592.46
Dec 1, 2013	IDA-37920	Int Charges	1,592.46
Dec 1, 2013	IDA-37920	Loan Repay	369,329.70
Dec 1, 2017	IDA-37920	Int Charges	9,283.97
Dec 1, 2017	IDA-37920	Int Charges	9,283.97
Dec 1, 2017	IDA-37920	Int Charges	115,985.82
Dec 1, 2017	IDA-37920	Int Charges	115,985.82
Dec 1, 2017	IDA-37920	Loan Repay	341,281.30
Dec 1, 2016	IDA-37920	Loan Repay	323,508.97
Dec 1, 2016	IDA-37920	Int Charges	114,764.96
Dec 1, 2016	IDA-37920	Int Charges	114,764.96
Dec 1, 2016	IDA-37920	Loan Repay	2,065.33
Jun 1, 2016	IDA-37920	Loan Repay	8,687.88
Jun 1, 2016	IDA-37920	Loan Repay	328,787.56
Jun 1, 2016	IDA-37920	Int Charges	120,225.66
Jun 1, 2016	IDA-37920	Int Charges	120,225.66
Jun 1, 2017	IDA-37920	Loan Repay	13,821.90
Jun 1, 2015	IDA-37920	Loan Repay	6,290.15
Jun 1, 2015	IDA-37920	Loan Repay	327,711.40
Jun 1, 2015	IDA-37920	Int Charges	118,671.56
Jun 1, 2015	IDA-37920	Int Charges	118,671.56
Dec 1, 2015	IDA-37920	Int Charges	2,792.15
Dec 1, 2015	IDA-37920	Int Charges	2,792.15
Dec 1, 2015	IDA-37920	Loan Repay	330,527.70
Dec 1, 2015	IDA-37920	Int Charges	118,989.94
Dec 1, 2015	IDA-37920	Int Charges	118,989.94
Jun 1, 2014	IDA-37920	Loan Repay	555.02
Dec 1, 2020	IDA-37920	Loan Repay	343,778.44
Jun 1, 2021	IDA-37920	Loan Repay	347,634.84
Jun 1, 2021	IDA-37920	Int Charges	101,678.05
Jun 1, 2021	IDA-37920	Int Charges	101,678.05
Jun 1, 2021	IDA-37920	Int Charges	5,968.91
Jun 1, 2021	IDA-37920	Int Charges	5,968.91
Dec 1, 2021	IDA-37920	Loan Repay	336,681.56
Jun 1, 2020	IDA-37920	Int Charges	0.01
Jun 1, 2020	IDA-37920	Int Charges	0.01
Jun 1, 2020	IDA-37920	Int Charges	105,907.75
Jun 1, 2020	IDA-37920	Int Charges	105,907.75
Jun 1, 2020	IDA-37920	Int Charges	3,477.00
Jun 1, 2020	IDA-37920	Int Charges	3,477.00
Jun 1, 2020	IDA-37920	Loan Repay	329,885.38
Dec 1, 2018	IDA-37920	Int Charges	112,309.04
Jun 1, 2019	IDA-37920	Loan Repay	4,038.18
Jun 1, 2019	IDA-37920	Loan Repay	327,379.62
Jun 1, 2019	IDA-37920	Int Charges	110,610.71
Jun 1, 2019	IDA-37920	Int Charges	110,610.71
Dec 1, 2019	IDA-37920	Loan Repay	3,378.71
Dec 1, 2019	IDA-37920	Loan Repay	326,903.62
Dec 1, 2019	IDA-37920	Int Charges	105,511.98
Dec 1, 2019	IDA-37920	Int Charges	105,511.98
Jun 1, 2018	IDA-37920	Int Charges	116,379.29
Jun 1, 2018	IDA-37920	Int Charges	1,754.96
Jun 1, 2018	IDA-37920	Int Charges	1,754.96
Jun 1, 2018	IDA-37920	Loan Repay	341,038.30
Jun 1, 2018	IDA-37920	Int Charges	116,379.29
Dec 1, 2018	IDA-37920	Loan Repay	11,741.60
Dec 1, 2018	IDA-37920	Loan Repay	321,025.84
Dec 1, 2018	IDA-37920	Int Charges	112,309.04
Jun 1, 2017	IDA-37920	Loan Repay	319,318.40
Jun 1, 2017	IDA-37920	Int Charges	107,120.17
Jun 1, 2017	IDA-37920	Int Charges	107,120.17
Dec 1, 2023	IDA-37920	Int Charges	86,590.35
Dec 1, 2023	IDA-37920	Loan Repay	4,931.95
Dec 1, 2023	IDA-37920	Loan Repay	636,078.94
Jun 1, 2024	IDA-37920	Int Charges	9,498.73
Jun 1, 2024	IDA-37920	Int Charges	9,498.73

Footnotes

Ratings

IMPLEMENTATION RATINGS

Name	Review	Date
Counterpart Funding	Satisfactory	2012-12-22
Progress towards achievement of PDO	Moderately Unsatisfactory	2012-12-22
Procurement	Moderately Satisfactory	2012-12-22
Monitoring and Evaluation	Moderately Unsatisfactory	2012-12-22
Project Management	Moderately Satisfactory	2012-12-22
Financial Management	Moderately Satisfactory	2012-12-22
Overall Implementation Progress (IP)	Moderately Unsatisfactory	2012-12-22

COMPLETION RATINGS

INDICATOR	IMPLEMENTATION COMPLETION & RESULTS REPORT: 06-25-2013
Outcomes	Moderately Satisfactory
Risk to Development Outcome	Modest
Bank Performance	Moderately Unsatisfactory
Borrower Performance	Moderately Unsatisfactory
Government Performance	Moderately Unsatisfactory
Implementing Agency	Moderately Unsatisfactory

INDEPENDENT EVALUATION RATINGS

INDICATOR	ICR REVIEW: 09-30-2014	PROJECT PERFORMANCE ASSESSMENT REPORT:
Outcome Rating	Moderately Unsatisfactory	N/a
Risk To Development Outcome	Moderate	N/a
Bank Performance	Moderately Unsatisfactory	N/a
Borrower Performance	Moderately Unsatisfactory	N/a
Government Performance	Moderately Unsatisfactory	N/a
Implementing Agency	Moderately Unsatisfactory	N/a
Icr Quality	Satisfactory	N/a
M&e Quality	Modest	N/a

Results Framework

PROJECT DEVELOPMENT OBJECTIVE INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

Acceptance and implementation of ERP by BB	Value	Yes	Yes	Yes
	Date	December 27, 2009	November 30, 2012	December 31, 2012
	Comment	BB does not have ERP system.	ERP is fully functional at BB. All HR functions, such as, recruitment, transfer, promotion, payroll and Provident Fund Managementare done through HR module of SAP.Financial management and accounting are done through FICO module of SAP. All procurement, andmaintenance of asset inventory are done through MM module of SAP. Regular Financial Statements are generated from ERP and bookclosingis completed in SAP.	ERP fully functional at BB.

Acceptance and implementation of Banking Application by BB	Value	Yes	Yes	Yes
	Date	December 27, 2009	November 30, 2012	December 31, 2012
	Comment	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 ofgovernment,banks and financial institutions; Reserve Management; vault operation and cash management; and sale, encashment, couponpayment, 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; andfund settlement. Electronic fund transfer operation for government salary payments has started for 1,611 officials of 17ministries includingthe Prime Minister's Office.	Banking application fully functional at BB

Acceptance and implementation of Data Warehouse by BB	Value	Yes	Yes	Yes
	Date	December 27, 2009	November 30, 2012	December 31, 2012
	Comment	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 onlineweb-based application of EDW. All other financial institutions are submitting their returns via Rationalized Input Templatesdirectly through the web portal. Many reports are currently generated from this application. A Dashboard has been developed withkey indicators so that management can get a compact view of the financial sector.	Data Warehouse fully functional at BB.

INTERMEDIATE RESULTS INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

Key staff in computer department receive adequate training.	Value	Inadequte training programs and facilities.	A regular computer training program, as a mandator	Continuous training ensured through a regular comp
	Date	May 4, 2003	November 30, 2012	December 29, 2012
	Comment		All the IT packages included training of key staff in the IT Department of BB. Moreover, 30 BB officials participated in overseastraining on ERP. 265 officials were trained as end users and TOT for ERP. 50 officials from IT Department and 50 from businessdepartments were trained on EDW. 135 business users and IT officials have been trained on the Banking package. Overseas trainingcontinues to be imparted on ERP, Banking, EDW, and networking.

BB work processes fully automated.	Value	Manual work processes in BB.	Implementation of BB automation completed with all	Implementation of BB automation component well adv
	Date	May 4, 2003	November 30, 2012	December 31, 2012
	Comment		All the IT contracts have been implemented, except for the National Payment Switch which is expected to "go Live" by end ofDecember 2012. More than 3,500 officials are now connected in the network and have access to BB Intranet and webmail. All the BBbranchesare now connected under the same network. Printing of circulars and office orders have already been stopped and are postedin the Intranet. BB is now using e-tendering for its own procurement. Electronic Fund Transfer Network is fully operational.

Modern HR policies adopted.	Value	Outdated and archaic HR policies in BB.	HR policies have been revised and modernized.	HR policies modernized
	Date	May 4, 2003	November 30, 2012	December 31, 2012
	Comment		BB is using the newly developed application forms for recruitment of AD. A new promotion policy and a Recognition and Rewardpolicyhave 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 in place.	Value	Outdated performance management system (PMS) in pl	A modern Performance Management System (PMS) has b	Modern performance management system adopted and p
	Date	May 4, 2003	November 30, 2012	December 31, 2012
	Comment		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.

Quality research reports on vital issues prepared and disseminated by BB.	Value	Research reports not up to the mark.	A Chief Economist Office has been set up and heade	Policy Analysis Unit staffed to carry out quality
	Date	May 4, 2003	November 30, 2012	December 31, 2012
	Comment		PAU is regularly publishing policy notes, working papers, Monetary Policy Review, Bangladesh Bank Quarterly, and Financial SectorReview. The PAU has published 26 policy notes, 31 working papers on various monetary, fiscal and development issues, 8 MonetaryPolicy Reviews (MPR), and 7 Financial Sector Review (FSR). Eight eminent economists from the country have been contracted toconduct research along with BB staff.

Bank supervisory policy manual upgraded.	Value	Outdated supervisory policy manual.	A draft of the Risk-based Inspection Manual for Ba	Upgraded manuals adopted and practised.
	Date	May 4, 2003	November 30, 2012	December 31, 2012
	Comment		BB is being helped by the IMF's Resident Adviser to upgrade the bank supervisory policy manual in line with risk-based supervisionframework.

Timely and accurate preparation and reporting of financial statistics, by BB by June 30, 2012.	Value	Financial statistics are published with a lag of o	The lag in reporting of most of the financial stat	The lag in reporting of financial statistics broug
	Date	May 4, 2003	November 30, 2012	December 31, 2012
	Comment		Almost all the banks have made the changes in their systems to generate data in the required format for submission through theon-line Rationalized Input Templates (RIT). Banks and financial institutions have stopped submitting hard copies of returns andstatements from November 2012, and reporting of financial statistics is fully automated now.

Timely and accurate accounting and reporting of government accounts and securities, by June 30, 2012.	Value	The process of accounting and reporting of governm	Reporting of government accounts and securities ar	Timely and accurate accounting and reporting of g
	Date	April 26, 2010	November 30, 2012	December 31, 2012
	Comment	Banking and ERP systems are now under implementation, and these systems will support BB to prepare timely and accurate financialstatistics.	All the government transactions are now being processed through the Banking Application package, and the daily debit and creditscrolls of the government accounts are shared with the government in electronic form at the end of the day.

Timely and accurate submission of prudential returns, by FIs and better management of foreign exchange, by BB by June 30, 2012	Value	The process of submission of prudential returns by	The financial institutions are submitting their pr	Timely and accurate submission of prudential retur
	Date	April 26, 2010	November 30, 2012	December 31, 2012
	Comment	These processes will be automated through the implementation of Datawarehose and ERP systems.	All the financial institutions (FIs) are submitting the prudential returns via Rationalized Input Templates directly to BB throughthe web portal. The Treasury Module under Core Banking Solution is used to better manage foreign exchange reserves.

Systems installed in BB to capture and share data on AML/CFT, by June 30, 2012	Value	Systems are manual at this stage.	The Financial Intelligence Unit (FIU) at BB is rec	Systems installed in BB to capture and share data
	Date	April 26, 2010	November 30, 2012	December 31, 2012
	Comment	Installation of AML/CFT systems would wait till BB installs all its IT packages and make them functional for BB's efficientfunctioning.	Customization of the "goAML" software is being carried out by UNODC in a test environment. Procurement of additional hardwareincluding servers has been initiated and the hardware is expected to be delivered in December 2012. The customized software willbe transferred to the dedicated servers in December 2012.