- Missions
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| TA Fact-Finding |
Loan Fact-Finding |
Pre-Appraisal |
Appraisal |
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2 Feb-10 Jun 2006 |
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22 Aug-29 Sep 2006 |
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Loan Approval Date
6 December 2006
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Estimated Completion Date
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- Cost and Financing Plan (in US$ million)
-
| Source |
Foreign Cost |
Local Cost |
Total |
| Bank |
200.00 |
0.00 |
200.00 |
| Cofinancing |
0.00 |
0.00 |
0.00 |
| Borrower |
0.00 |
0.00 |
0.00 |
| Beneficiaries |
0.00 |
0.00 |
0.00 |
| Others |
0.00 |
0.00 |
0.00 |
| Project/Program Cost |
200.00 |
0.00 |
200.00 |
| |
OCR |
ADF |
Total |
| Loan Amount |
200.00 |
0.00 |
200.00 |
- Description
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- Thematic Classification
- Economic Growth
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- Target Classification
- General Intervention
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- Rationale
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The financial sector plays a critical role to support economic growth through effective intermediation. An efficient and resilient financial sector will support private sector development and enhance the investment climate. The ongoing fiscal consolidation, enhanced debt management and inflation-targeting will contribute to a more conducive macroeconomic environment for continued financial market development. There is a momentum in regulatory and supervisory reforms as well as in resolution of NPAs in the banking system. The combination of an improved macroeconomic situation and substantial reform by authorities forms the basis for the proposed program to further improve regulation and supervision, enhance intermediation, and create more effective financial markets.
- Objectives and Scope
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The proposed Financial Market Regulation and Intermediation Program (FMRIP) aims to increase the contribution of the financial sector to economic growth and development of the Philippines by promoting a more efficient financial sector that can finance profitable private investment projects at lower cost and risk than at present. In addition to providing support to Government's fiscal consolidation and sound debt management measures, the program will also aim to enahnce financial governance and introduce measures to promote market efficiency and reduce risks that will contribute to better investment confidnece and climate and enhance resolution of banks. The purpose of the Program is to support the Government's financial sector reform agenda and development of capital markets and other nonbank financial services in particular.
The policy measures include a set of financial sector reforms to promote diversification of financial channels, and enhance transparency and market efficiencies in intermediation. The reform agenda is structures around policy actions mostly in line with Government's capital market development plan, under the following headings: (i) macroeconomic stabilization, (ii) enhance financial sector governance, (iii) promote overall market efficiency and liquidity in securities market, and (iv) reduction in financial risks through risk-based approaches to capital adequacy and supervision, and enhanced resolution of banks. The policy reform agenda is also supported by a piggy backed TA, for supporting the Implementing Agencies to implement the policy action under the reforms.
The FMRIP is structured as a cluster of two program loans to support the Government's medium term reform agenda. It is envisaged that the second program will be ready for Board consideration approximately 18 months after FMRIP. The policy reforms under Program II are indicative adn the scope and schedule of Program II will be modified as necessary based on a review of the accomplishments under Program I.
- Policy Dialogue
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- Environment Category:
C
- Environment Impact and Mitigation
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- Social Aspects and Remedies
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- Benefits and Beneficiaries
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- Public Consultation
- Arranged by
- Date for Consultation :
- Groups Consulted :
- Beneficiary Participation in Formulation
-
- Beneficiary Participation in Implementation
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- Consulting Services
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Not applicable.
- Procurement
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The loan proceeds will be used to finance the foreign exchange costs of items produced and procured in ADB member countries (other than items specified in the negative list of imports financed by other bilateral and multilateral sources).
- Contacts
- Bank
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V. V. Subramanian
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Senior Financial Sector Specialist (Capital Markets)
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SEGF
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Tel. No.:
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(632) 632-6435
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E-mail:
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vsubramanian@adb.org
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- Executing Agency
- Department of Finance
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Contact Person
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Tel. No.
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Fax. No.
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E-mail
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- Remarks
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Projects 
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