Bhutan: Supporting Financial Sector Reforms

Sovereign Project | 51252-006

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 Name Supporting Financial Sector Reforms
Project Number 51252-006
Country Bhutan
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 6885-BHU: Supporting Financial Sector Reforms
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
Sector / Subsector

Finance / Finance sector development

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.

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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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The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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Tenders

No tenders for this project were found.


Contracts Awarded

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Procurement Plan

None currently available.