The World Bank Implementation Status & Results Report Myanmar Financial Sector Development Project (P154389) Myanmar Financial Sector Development Project (P154389) EAST ASIA AND PACIFIC | Myanmar | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2017 | Seq No: 4 | ARCHIVED on 21-Jun-2019 | ISR36721 | Implementing Agencies: Ministry of Planning and Finance, Central Bank of Myanmar, Ministry of Planning and Finance Key Dates Key Project Dates Bank Approval Date: 20-Dec-2016 Effectiveness Date: 27-Jun-2017 Planned Mid Term Review Date: 15-Oct-2019 Actual Mid-Term Review Date: -- Original Closing Date: 30-Jun-2021 Revised Closing Date: 30-Jun-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) To expand access to finance in Myanmar and, in the event of an Eligible Crisis or Emergency, to provide immediate and effective response to such Eligible Crisis or Emergency. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Reform of state-owned banks:(Cost $37.00 M) Upgrading of the financial sector legal, regulatory, and supervisory framework:(Cost $37.00 M) Modernization of the CBM and financial infrastructure:(Cost $24.00 M) Project coordination and monitoring:(Cost $2.00 M) Contingent emergency response Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating High High Implementation Status and Key Decisions Significant progress has been made since the last implementation support mission towards the achievement of the PDO. In particular, the government announced a number of financial sector policy advances at the beginning of the current calendar year, including the opening of the insurance sector to foreign investors, the issuance of full set of regulations for the modernization of banking legal structure, and moving forward with the reform of state-owned banks. 6/21/2019 Page 1 of 5 The World Bank Implementation Status & Results Report Myanmar Financial Sector Development Project (P154389) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High High High Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Low Low Low Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Sustainability High High High Fiduciary High High High Environment and Social Low Low Low Stakeholders Low Low Low Other -- -- -- Overall High High High Results PDO Indicators by Objectives / Outcomes Increase financial access IN00692788 ►Adults with active transaction accounts (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 22.80 26.00 26.00 32.00 Date 31-Dec-2014 26-Jul-2018 15-Mar-2019 31-Dec-2020 IN00711507 Males (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 28.60 -- 26.00 32.00 Date 31-Dec-2014 -- 15-Mar-2019 31-Dec-2020 IN00711508 Females (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 17.40 -- 26.00 27.00 6/21/2019 Page 2 of 5 The World Bank Implementation Status & Results Report Myanmar Financial Sector Development Project (P154389) Date 31-Dec-2014 -- 15-Mar-2019 31-Dec-2020 IN00692789 ►Adults in the poorest 40% with accounts at a financial institution (%) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 16.10 23.00 23.00 20.00 Date 31-Dec-2014 26-Jul-2018 15-Mar-2019 31-Dec-2020 IN00692790 ►Loans from commerical banks (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 8.00 23.47 28.00 15.00 Date 31-Dec-2014 26-Jul-2018 15-Mar-2019 31-Dec-2020 Overall Comments PDO All PDO indicators have shown progress towards meeting their end targets. While the overall financial inclusion numbers as reported in the FINDEX Survey, 2018 were below expectations, it is important note that the gender gap in financial inclusion in Myanmar has shrunk rapidly. In large part this can be attributed to the growth of the microfinance sector in recent years where the clientele is mostly women. Intermediate Results Indicators by Components Reform of state-owned banks IN00692806 ►Improved transparency of state-owned banks (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 02-Jan-2017 26-Jul-2018 15-Mar-2019 31-Dec-2019 The special diagnostics for MEB have been concluded but not yet published. Comments: Upgrading of the financial sector legal, regulatory, and supervisory framework IN00692807 ►Improved soundness and transparency of financial institutions (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 15.00 15.00 50.00 Date 02-Jan-2017 26-Jul-2018 15-Mar-2019 31-Dec-2020 6/21/2019 Page 3 of 5 The World Bank Implementation Status & Results Report Myanmar Financial Sector Development Project (P154389) Progress on this indicator has slowed as the Central Bank has allowed banks a three year period to Comments: transition to the new prudential framework so as to minimize market disruption. IN00692809 ►Upgrading of NBFI supervisory capacity (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 2.00 3.00 Date 02-Jan-2017 26-Jul-2018 15-Mar-2019 31-Dec-2020 The supervisory manuals/internal guidelines for insurance and microfinance have been developed. Comments: Similar guidelines for state-owned banks have been developed and are pending adoption. IN00692810 ►Capacity building for citizen engagement and activities empowering citizens (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 29-Nov-2016 26-Jul-2018 15-Mar-2019 30-Dec-2020 Both the CBM and FRD have strengthened their consultative process and are engaging more proactively Comments: with financial institutions and the general public. But further capacity improvements are needed. Modernization of the CBM and financial infrastructure IN00692808 ►Banks connected to CBM (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 44.00 50.00 80.00 Date 29-Nov-2016 26-Jul-2018 15-Mar-2019 30-Dec-2020 This indicator is on track. Comments: Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P154389 IDA-59300 Effective USD 100.00 100.00 0.00 3.25 96.18 3.3% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P154389 IDA-59300 Effective 20-Dec-2016 11-Apr-2017 27-Jun-2017 30-Jun-2021 30-Jun-2021 6/21/2019 Page 4 of 5 The World Bank Implementation Status & Results Report Myanmar Financial Sector Development Project (P154389) Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/21/2019 Page 5 of 5