This funding, along with a $2 million contribution from the Japan Fund for Prosperous and Resilient Asia and the Pacific financed by the Government of Japan, will support technical assistance to expand inclusive and climate finance in the country.
Such a move would help ensure transparency and openness in banking operations while staying in line with Basel II standards and other international practices.
The main objective of the project is to ensure all banks adopting the Basel II standards have a capital adequacy ratio (CAR) of at least 10-11% by 2023, and eventually to 11-12% by 2025.
Banks’ support for the economy would help realize the GDP growth target of 6-6.5% for this year.