Bhutan: Supporting Financial Sector Reforms
This knowledge and support technical assistance (TA) will support financial sector reforms in Bhutan by focusing on assisting the Royal Monetary Authority (RMA) to: (i) improve their internal capacity to manage credit risks and comply with international standards, (ii) implement risk management measures encompassing the formal credit ecosystem in Bhutan and (iii) implement insurance sector strategy and recommendations to improve sector solvency, product scope and risk diversification.
Project Details
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Project Officer
Gunawardhena, Manohari
South Asia Department
Request for information -
Country
Bhutan -
Sector
- Finance
Related Projects
| Project Name | Supporting Financial Sector Reforms | ||||
| Project Number | 51252-006 | ||||
| Country | Bhutan |
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| Project Status | Active | ||||
| Project Type / Modality of Assistance | Technical Assistance |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Private sector development |
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| Sector / Subsector | Finance / Finance sector development |
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| Gender Equity and Mainstreaming | Effective gender mainstreaming | ||||
| Description | This knowledge and support technical assistance (TA) will support financial sector reforms in Bhutan by focusing on assisting the Royal Monetary Authority (RMA) to: (i) improve their internal capacity to manage credit risks and comply with international standards, (ii) implement risk management measures encompassing the formal credit ecosystem in Bhutan and (iii) implement insurance sector strategy and recommendations to improve sector solvency, product scope and risk diversification. | ||||
| Project Rationale and Linkage to Country/Regional Strategy | The proposed TA will assist in the objectives of RMA to build capacity, develop a risk-based system and enhance the supervisory process in the areas of credit, insurance and overall risk management of the financial system. | ||||
| Impact | TA is Aligned with stability and integrity of the financial system maintained (Twelfth Five Year Plan, 2018 2023). Financial sector reforms of Bhutan supported with strengthened capacity and implementation of financial market development strategies. | ||||
| Project Outcome | |
|---|---|
| Description of Outcome | Financial sector reforms of Bhutan supported with strengthened capacity and implementation of financial market development strategies by RMA strengthened. |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | Insurance sector strategy strengthened Implementation of short to medium term strategies on credit risk management and efficient recovery of assets in the financial system enhanced Risk Based Supervision System (RBSS) for banks and nonbanks implemented Coverage and delivery of insurance products and annual reporting on financial inclusion enhanced |
| Status of Implementation Progress (Outputs, Activities, and Issues) | |
| Geographical Location | Nation-wide |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Business Opportunities | |
|---|---|
| Consulting Services | ADB will recruit consulting firms with international and national consultants. The firms will be engaged by ADB through quality- and cost-based selection with a quality-cost ratio of 90:10, because of the highly specialized expertise needed, using a simplified technical proposal in accordance with the ADB Procurement Policy (2017, as amended from time to time). |
| Procurement | not applicable |
| Responsible ADB Officer | Gunawardhena, Manohari |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | Public Management, Financial Sector and Trade Division, SARD |
| Executing Agencies |
Ministry of Finance Royal Government of Bhutan Thimphu, Bhutan Attention: Director |
| Timetable | |
|---|---|
| Concept Clearance | 18 Nov 2021 |
| Fact Finding | 17 Nov 2021 to 17 Nov 2021 |
| MRM | - |
| Approval | 16 Dec 2021 |
| Last Review Mission | - |
| Last PDS Update | 16 Dec 2021 |
TA 6885-BHU
| Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
|---|---|---|---|---|---|---|---|---|
| ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
| Gov | Beneficiaries | Project Sponsor | Others | |||||
| 500,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 500,000.00 | - | 0.00 |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
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| Title | Document Type | Document Date |
|---|---|---|
| Supporting Financial Sector Reforms: Technical Assistance Report | Technical Assistance Reports | Dec 2021 |
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
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Related Publications
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Tenders
No tenders for this project were found.
Contracts Awarded
No contracts awarded for this project were found
Procurement Plan
None currently available.