Strengthening Financial Inclusion and Financial Sector Development (ADB-50002-001)

Countries
  • Nauru
Where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jul 25, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Government of Nauru
The holder of the loan, grant, or other investment.
Sectors
  • Technical Cooperation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 0.35 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Jul 31, 2017

Disclosed by Bank Sep 22, 2016


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Project Description
Nauru's long economic malaise without a functioning bank means it now has the opportunity to leapfrog from a cash-based system directly to a more modern, digitized one. It also needs to establish a functional legal and institutional framework to govern the sector if it is to develop the local market. The CDTA will help introduce Nauru to modern financial services by designing and implementing financial literacy activities. This will be done working in close cooperation with local partners whilst seeking to utilize innovative and cost-efficient approaches (e.g., using mobile phones as delivery channels, leveraging the cash transfer program for school-aged children, and working with newly established youth councils). To increase access to a broader range of modern financial services the CDTA will help the government to enhance financial sector policy through conducting a financial services demand study to better understand the local market and drafting a new Financial Services Act, which will include determining a cost-effective institutional model for a new Financial Services Commission and ensuring coverage of digital services balances appropriate regulation with safeguarding market development. The CDTA will both leverage and support regional lessons and approaches by drawing upon ADB's experience in other Asia Pacific countries (e.g. drawing upon the ADB financial literacy toolkit) and contributing its own lessons and new approaches.
Investment Description
  • Asian Development Bank (ADB)
Contact Information
ACCOUNTABILITY MECHANISM OF ADB The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main