Review of 2011 Financial Sector Operational Plan

,

• Publisher: Asian Development Bank
• Year: 2017
• Print ISBN:
  9789292578275
• eBook ISBN:
  9789292578282
• Topic: Business
• Subtopic: Finance
• Index: Business

The cross-cutting impact of finance on different sectors and economic activities amplifies opportunities for expanding financial inclusion and poverty reduction, which is why the Asian Development Bank's (ADB) 2011 Financial Sector Operational Plan (FSOP) was designed to address challenges ahead. ADB's finance sector operations contributed 11% of total lending portfolio over 2011-2015, about 15% of that in 2015 alone. This review examines the implementation of the 2011 FSOP and looks at the critical role of the finance sector in development in Asia and the Pacific. While this publication affirms that the FSOP remains valid and relevant, it also makes recommendations up to 2020 and provides a platform to launch the FSOP beyond 2020 to ensure its relevance with ADB's road to 2030.

APPENDIXES

APPENDIX 1: FINANCE SECTOR OPERATIONAL PLAN RESULTS FRAMEWORK¹

^aNumber of deposit account holders at commercial banks and other resident banks functioning as commercial banks that are resident nonfinancial corporations (public and private) and households. Results based on average of data from Afghanistan, Azerbaijan, Bangladesh, People’s Republic of China, Georgia, Kiribati (2013), Kyrgyz Republic, Lao PDR (2013), Maldives, Myanmar, Pakistan, Palau, Philippines, Samoa, Solomon Islands, Tajikistan (2013), Thailand, Timor-Leste, Uzbekistan, and Vanuatu. Source: World Bank, World Development Indicators (accessed December 2016).

^bApproximate number of adults who report having an account (by themselves or together with someone else) at a bank or another type of financial institution or report personally using a mobile money service in the past 12 months. Source: World Bank, 2015 Little Data Book on Financial Inclusion.

^cSource: ADB Strategy and Policy Department.

^dSource: Trade Finance Program 2016 brochure.

^eSource: Asian Development Bank’s Contributions to Development Results database (accessed on September 2016). https://www.adb.org/site/development-effectiveness/results-adb-supported-operations

^fCovers ADF and OCR only, based on Strategy 2020 classification. Source: Operations Dashboard and PSFI database

^gRatio of total net direct value-added (DVA) cofinancing to total approved OCR and ADF financing for 2015. Source: 2015 ADB Annual Report.

^hCommercial cofinancing for ADB private finance sector operations.

ⁱ3 hours per month to include 1 hour for FSG Committee meeting and 2 hours for other meetings and business matters.

^jBased on TA funds approved in 2015. Includes TASF only. Source: Loan and TA Approvals database (accessed September 2016)

^kBased on average projected costs for 2016 and 2017 as indicated in the Sector and Thematic Skills Development Plan.

^lBased on 2015 FSG budget allocation. Covers business travel, staff consultancy, representation and membership fees to international bodies.

APPENDIX 2: FINANCE SECTOR GROUP ACTION PLAN

Actions/Strategies	Responsible Unit(s) (%)	Indicative Timeframe
1. Areas of focus		For completion
1.1. Retain focus on finance sector development, inclusive finance, and infrastructure finance	Operational Departments	Ongoing
1.2. Increase operational involvement in cross-sector/thematic, and innovative areas—digital, green, disaster risk, Islamic, and municipal finance	FSG Secretariat, Operational Departments	Ongoing
2. Upgrade Sector Skills
2.1. Staffing 2.1.1. Assess gaps in skills, capabilities and resources—including for staff sharing opportunities across operational departments and non-operational departments—and develop training modules around these identified areas	FSG Secretariat, Operational Departments	Q1 2018
2.1.2. Conduct training and capacity development programs for ADB staff (HQ and RM) on operational areas of focus; project design, processing and management; and due diligence	FSG Secretariat	Ongoing
2.1.3. Contribute to quality and appropriate skills in external recruitment of staff and engagement of secondees to address findings of skills gap audit	FSG Secretariat, Operational Departments, BPMSD	Ongoing
2.1.4. Develop partnerships that can be tapped on short notice to support operations	FSG Secretariat	Q1 2018
2.2. Financing 2.2.1 Attract additional donor funds, including into the Financial Sector Development Partnership Special Fund to finance TA	FSG Secretariat, OCO	Q4 2020
2.3. Knowledge 2.3.1. Organize and deliver knowledge products and knowledge sharing and learning events	FSG Secretariat, Operational Departments	Ongoing
2.3.2. Review and establish as relevant partnerships with centers of excellence, academia, and regional and international networks to remain updated on financial sector developments and issues	FSG Secretariat	Q4 2020
2.3.3. Incorporate internal dissemination processes into ADBs engagement with international standard setting bodies (BIS, IAIS, IOPS, FATF, IOSCO, IADI, and IFSB), continue to provide technical inputs and advice	FSG Secretariat, Operational departments, nonoperational departments	Ongoing
3. Improve Finance sector operational performance
3.1. Establish guidelines for a structured peer review process of proposed finance sector operations	FSG Secretariat, SPD	Q1 2018
3.2. Increase collaboration between operational departments and other departments in quality at entry and evaluation for projects/programs	FSG Secretariat, Operational Departments	Ongoing
4. Improve finance sector analysis
4.1. Establish guidance notes for conducting comprehensive finance sector assessment to identify opportunities and challenges	FSG Secretariat, Operational Departments	Q4 2018
4.2 Establish guidance notes on finance sector outcome and output performance indicators and targets across finance sector operations	FSG Secretariat, Operational Departments	Q4 2018
5. Improve systems and processes
5.1. Improve level 2 performance indicators to more accurately represent finance sector operations.	FSG Secretariat, Operational Departments, SPD	Q1 2018
5.2. Improve project classification system to better capture finance sector operations.	FSG Secretariat, Operational Departments, SPD	Q1 2018
5.3. Develop tracking system to capture finance sector operations contribution to climate change adaptation and mitigation and incorporate into the ADB project classification system.	FSG Secretariat, SDCC	Q4 2017
5.4. Review and strengthen as required existing products and financing modalities to meet DMC demand for ADB support as well as relevant operations manuals and staff instructions.	FSG Secretariat, Operational Departments, SPD	Ongoing

BIS = Bank for International Settlements, BPMSD = Budget, Personnel, and Management Systems Department, DMC = developing member country, FATF = Financial Action Ta...

Table of contents

• Front Cover
• Title Page
• Copyright Page
• Contents
• Executive Summary
• 01 Introduction
• 02 The Relevance of Finance Sector Development in Asia and the Pacific
• 03 Review of the Financial Sector Operational Plan and Review Methodology
• 04 Review of Finance Sector Operations
• 05 Finance Sector Development in Asia and the Pacific
• 06 Recommendations and Conclusions
• Appendixes
• Back Cover