Public Disclosure Copy The World Bank Implementation Status & Results Report Malawi - Financial Sector Technical Assistance Project (P122616) Malawi - Financial Sector Technical Assistance Project (P122616) AFRICA | Malawi | Financial and Private Sector Development Global Practice | IBRD/IDA | Specific Investment Loan | FY 2011 | Seq No: 7 | ARCHIVED on 15-Jan-2015 | ISR17472 | Implementing Agencies: Key Dates Key Project Dates Board Approval date:24-Mar-2011 Effectiveness Date:22-Dec-2011 Planned Mid Term Review Date:03-Nov-2014 Actual Mid-Term Review Date:03-Nov-2014 Original Closing Date:31-Aug-2016 Revised Closing Date:31-Aug-2016 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project aims to increase access to finance for the currently unbanked, but bankable, population of Malawi. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Component 1: Financial Sector Regulation and Supervision:(Cost $5.32 M) Component 2: Financial Infrastructure:(Cost $13.22 M) Component 3: Financial Consumer Protection and Financial Literacy:(Cost $3.02 M) Component 4: Ministry of Finance's Financial Sector Policy and Governance Capacity and Long-term Finance:(Cost $3.39 M) Component 5: Implementation Support:(Cost $3.26 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Satisfactory  Moderately Satisfactory Overall Risk Rating  --  Moderate 1/15/2015 Page 1 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Malawi - Financial Sector Technical Assistance Project (P122616) Implementation Status and Key Decisions Project was declared effective on 22 December 2011 and formally Launched in February 2012. The first supervision mission was held from 11-12 June, 2012. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  --  Moderate Macroeconomic  --  --  Moderate Sector Strategies and Policies  --  --  Moderate Technical Design of Project or Program  --  --  Moderate Institutional Capacity for Implementation and Sustainability  --  --  Moderate Fiduciary  --  --  Moderate Environment and Social  --  --  Low Stakeholders  --  --  Moderate Other  --  --  -- 1/15/2015 Page 2 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Malawi - Financial Sector Technical Assistance Project (P122616) Overall  --  --  Moderate Results Project Development Objective Indicators PHINDPDOTBL  PDO Indicator one: Increase in the percentage of the adult population that use formal financial institutions. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 19.00 19.00 33.00 40.00 Date 24-Mar-2011 05-May-2014 23-Dec-2014 31-Aug-2016 PHINDPDOTBL  PDO Indicator two: Increase in the proportion of women within the adult population that is formally banked. (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 17.00 17.00 28.00 40.00 Date 24-Mar-2011 05-May-2014 23-Dec-2014 31-Aug-2016 PHINDPDOTBL  Agency Banking regulations operational (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Baseline TBD -- TBD TBD Date 03-Dec-2012 -- 23-Dec-2014 16-Aug-2016 PHINDPDOTBL  Transactions volume and value processed by new payments systems (ATS, National Switch, MFI TPH) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target ATS went live in November, 2014 and Volume by Volume: 159,625; National Switch due to Value -- 20%; Value by Value: MK 4,253 Billion go live in end January, 10% 2015. MFI TPH yet to be operational (2016) 1/15/2015 Page 3 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Malawi - Financial Sector Technical Assistance Project (P122616) Date 30-Sep-2011 -- 23-Dec-2014 16-Aug-2016 PHINDPDOTBL  Proportion of financially literate population (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3.6% -- 3.6% TBD Date 29-Aug-2014 -- 23-Dec-2014 16-Aug-2016 PHINDPDOTBL  Proportion of financially literate women in the population (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3.4% -- 3.4% TBD Date 29-Aug-2014 -- 23-Dec-2014 16-Aug-2016 Overall Comments Intermediate Results Indicators PHINDIRITBL  Indictor One: Key regulations and supervision manuals issued to support implementation of the 10 new financial laws which have beenpassed recentlyu or to be passed over the life of the project. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Development of Pension and Insurance Existing regulatroy Supervision framework framework needs to be finalized ; Development upgraded in order to of a regulatory 2nd group of Development and support the implementation framework for mobile key implementations of Value of the 7 new laws passed banking finalised; regulations/sup new regulations and in the last 2 years, in Problem Bank resolution ervision manuals ongoing. addition to the 3 news bills framework for RBM manuals issued that are expected to be finalized passed later. Directive on Consolidated 1/15/2015 Page 4 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Malawi - Financial Sector Technical Assistance Project (P122616) Supervision has been drafted Date 24-Mar-2011 31-Jul-2013 23-Dec-2014 16-Aug-2016 PHINDIRITBL  Indicator Two: Automated tools for offsite surveillance and macro-prudential analysis designed, acquired and implemented. (Text, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target An analysis study which reviewed the current systems of off-site surveillance and macro- prudential analysis has been concluded and a Analytical tools financial sector for offsite Offsite and macro- Offsite and macro- supervision system was monitoring and prudential analysis is prudential analysis is not designed. analysis used not supported by supported by automated in day-to-day Value automated analytical analytical tools using RBM discussed the work. tools using comprehensive reliable recommendations from Stability Report comprehensive reliable and timely data the consultancy which updated and and timely data among others include published at the enhancement of the least Annually Bank Supervision Application and not procurement of an entirely new system. Date 24-Mar-2011 05-May-2014 23-Dec-2014 16-Aug-2016 PHINDIRITBL  Indicator Three: RBM staff trained in uses of analytical tools and regarding new regulations (Text, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target No staff has been trained in new No automated No automated analytical automated analytical analytical tools are tools are available and tools yet. However all 100% of staff Value available and staff do staff do not have hand-on supervision staff have Trained not have hand-on experience using them been trained locally in experience using them the developed non- automated tools Date 24-Mar-2011 05-May-2014 23-Dec-2014 16-Aug-2016 1/15/2015 Page 5 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Malawi - Financial Sector Technical Assistance Project (P122616) PHINDIRITBL  Indicator Seven: Modern financial infrastructure deployed and operational (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Installation, Commissioning and commissioning Outdated financial Value -- stabilizing ATS/CSD and and infrastructure. national switch. stabilization of “hub” solution. Date 22-Dec-2011 -- 23-Dec-2014 16-Aug-2016 PHINDIRITBL  Indicator Eight: Increased number, value, volume of POS, ATMs and Mobile payments (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target (a) POS (2012) Number: 679 Volume: Value:307.9m (b) ATM (2013) Number: 368 To be To be Confirmed (New Value Volume: 1,590,121 -- confirmed (new Indicator) Value: K17.49 B indicator) (c) Mobile Payments (2013) Volume: 188,928 Value: K761 million (2012) Date 22-Dec-2011 -- 23-Dec-2014 16-Aug-2016 PHINDIRITBL  Indicator Nine: Number of participating members of all 3 payments systems (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target All 12 All 12 commercial banks commercial will participate at the go- banks live-date of ATS in participating in November 2014. All 12 Proposed ATS, National ATS. All 12 Banks have agreed to Value Switch and MFI TPH not -- Banks participate by go-live yet operational participating in date of end January, National 2015 for National Switch. MFI Switch. MFI Hub not yet Hub not yet operational operational Date 22-Dec-2011 -- 23-Dec-2014 16-Aug-2016 1/15/2015 Page 6 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Malawi - Financial Sector Technical Assistance Project (P122616) PHINDIRITBL  Indicator Ten: Approved road-map for implementation of government EFT payment program (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 18-month No roadmap for action plan implementation of Commencement of EFT mostly Value -- government EFT payment Risk Assessment implemented program (+60 percent of activities). Date 22-Dec-2011 -- 23-Dec-2014 16-Aug-2016 PHINDIRITBL  Indicator Eleven: Legal and regulatory framework for consumer protection prepared and presented to Cabinet (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Consumer Protection- Legal and Regulatory Framework consultancy finalized ; Consumer Complaints and Dispute Resolution framework consultancy finalized The Financial Services Act and discussed in 2 includes some major workshops (one for RBM provisions on consumer and one for industry) 3rd priority protection, and gives the and will be presented to Value -- regulations RBM authority to regulate RBM Board in drafted. and supervise consumer December 2014. protection issues in Consultancy report on financial directives on disclosure of information by financial institutions (credit side only) was finalized but has not been implemented. Neither report has been endorsed by RBM. Date 22-Dec-2011 -- 23-Dec-2014 16-Aug-2016 PHINDIRITBL  Indicator Twelve: Institutional arrangements for consumer protection in all financial services implemented (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The Consumer Protection unit was set RBM's consumer up and is operational 4th priority protection unit (CPU) has within Microfinance and measures of been created (but not Value -- Capital Markets (MCM) institutional staffed) within the department. Despite program are microfinance and capital being within the MCM implemented markets unit department the unit is able to cross-cut 1/15/2015 Page 7 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Malawi - Financial Sector Technical Assistance Project (P122616) departments. Date 22-Dec-2011 -- 23-Dec-2014 16-Aug-2016 PHINDIRITBL  Indicator Thirteen: Increased awareness of rights as financial consumers among population reached by financial literacy campaign (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The baseline survey was Consumer Consumer rights in concluded in June 2014, rights financial services is an with the final report awareness: ascent concept and issued in August, 2014. . Baseline +15% measurement of Based on the Baseline, awareness of the rights a Financial Literacy Financial needs to be developed Strategy has been Value -- literacy through Baseline survey. developed and is close campaign: to finalization and is 100% of No systematic financial expected to be launched targeted literacy campaign has in mid 2015 after the population been conducted in Malawi Cabinet approval reached process has been completed. Date 22-Dec-2011 -- 23-Dec-2014 16-Aug-2016 PHINDIRITBL  Indicator Fourteen: RBM institutional capacity has been enhanced for consumer protection supervision. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 6 staff (plus Director) No No training or developed training or developed To Be Value processes and procedures. -- processes and Confirmed 2 staff. procedures Date 22-Dec-2011 -- 23-Dec-2014 16-Aug-2016 Overall Comments The Monitoring and Evaluation Framework is being strengthened to better measure the PDO through the upgrading of some intermediate outcome indicators and introduction of new PDO level indicators. In addition, a number of new intermediate level indicators have been introduced Data on Financial Performance 1/15/2015 Page 8 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Malawi - Financial Sector Technical Assistance Project (P122616) Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P122616 IDA-48970 Effective XDR 18.10 18.10 0.00 9.17 8.93 51% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P122616 IDA-48970 Effective 24-Mar-2011 02-Nov-2011 22-Dec-2011 31-Aug-2016 31-Aug-2016 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) 1/15/2015 Page 9 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Malawi - Financial Sector Technical Assistance Project (P122616) There are no related projects. 1/15/2015 Page 10 of 10 Public Disclosure Copy