World Bank to fund Tk 1,261cr financial sector project

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The World Bank is providing Tk 1,261 crore in loans for Bangladesh’s second Financial Sector Support Project (FSSP-II), aimed at modernising the banking and financial sector.

The five-year project will focus on financial safety nets, technology-based banking operations, regulatory capacity, bank restructuring and resolution mechanisms.

The project is scheduled to be placed before the Executive Committee of the National Economic Council (ECNEC) on September 29 for approval. The government will contribute Tk 14.76 crore, while the remaining amount will come from the World Bank. Implementation is planned from July 2026 to June 2031.

Planning Division Secretary SM Shakil Akhter said the project would address problems including financial instability, resource constraints, administrative inefficiency and weak technological infrastructure.

The project places major emphasis on information and communication technology. Around Tk 711.72 crore is allocated for ICT equipment, Tk 355.36 crore for software and Tk 7.64 crore for database development.

The project also includes training for 3,565 people, with Tk 70.77 crore allocated for training, along with Tk 94.44 crore for consultancy services.

Another key focus is strengthening the financial safety net, including the Deposit Insurance Trust Fund and mechanisms for bank resolution and restructuring. The project will also support governance and financial stability reforms in state-owned commercial banks.

FSSP-II follows an earlier Financial Sector Support Project implemented by Bangladesh Bank. Usable equipment from the previous project may be transferred to the new programme to avoid unnecessary duplication.