| General Information |
Project/Program |
Program |
| Project Name |
Policy-Based Loan for Subprogram 3 Kingdom of Cambodia: Third Financial Sector Program |
| Duration |
December 2010 to December 2013 |
| Donor |
Asian Development Bank |
| Implementiong Organization |
Asian Development Bank |
| Sector and/or Subsector Classification |
Finance |
| Region |
National |
| Financing |
15 $ million |
| Analytical Information |
Stakeholders |
Asian Development Bank; Cambodia Financial Intelligence Unit; Credit Bureau Cambodia; Ministry of Economy and Finance; Ministry of Commerce; National Bank of Cambodia |
| Cross-cutting Issue |
Environment |
|
| Gender |
|
| Impact Analysis |
The proposed revisions do not materially affect the program’s impact, outcome, and outputs. Subprogram 3 has four outputs: (i) improved legal, regulatory, and institutional framework; (ii) improved financial infrastructure; (iii) strengthened finance sector governance; and (iv) enhanced finance sector efficiency. |
| Effectiveness |
Ownership/Partnership |
Evaluation |
Under the Second Financial Sector Program,10 a comprehensive review of the Law on Banking and Financial Institutions (LBFI), conducted with ADB TA, raised issues relating to consumer protection, bank secrecy provisions to support the development of a credit information-sharing system, administrative procedures for insolvent or distressed banks, and protection or immunity of bank regulators. |
| Rating |
4/5 |
| Policy Coherence/Harmonization |
Evaluation |
In terms of policy actions,9 the government has requested minor modifications to 8 policy triggers and 2 policy milestones. Among modified policy actions, one policy trigger and one policy milestone have now been incorporated in programs of other development partners with additional resources to support related capacity building. The program also includes an additional policy trigger involving the introduction of the negotiable certificate deposit program to improve commercial banks’ liquidity management. Subprogram 3 has 20 policy triggers and 11 policy milestones. The four policy triggers are still on-going and are expected to be completed by December 2014. |
| Rating |
4/5 |
| Evaluation Framework |
Evaluation |
The Asian Development Bank (ADB) meets regularly with all development partners in the finance sector to discuss current issues, and development partners’ coordination was further strengthened during the update of the Financial Sector Development Strategy for 2011–2020. |
| Rating |
2/5 |
| Alignment/Composition of Finance |
Evaluation |
The third program, with its three subprograms, requires a total of $45 million equivalent from ADB’s Special Fund resources. The size of the budget support program depends on (i) the financing needs for sector development as identified during country programming and strategy formulation; (ii) the importance the government attaches to the reform program; and (iii) theestimated costs of designing and implementing the medium-term reform program minus the estimated financial support from other development partners. |
| Rating |
4/5 |
| Other Remarks |
Good governance has been a priority throughout, and the third program in particular has supported the government’s commitments to the international community. This will improve the finance sector’s reputation and the international community’s confidence in the country. |
