Financial Sector Intermediation Facility and Equity Investment in Bhutan National Bank

Delays in the establishment of a credit information bureau was also partly a failure of analysis. Costs were underestimated and the problems were not fully understood. Founding a CIB in Bhutan is not only a problem of coordination among the lending institutions. The challenge is more fundamental, with the essential problem being the poor data systems and practices of the lending institutions. Substantive analysis at the design stage of the FSIF would probably have identified this issue and allowed ADB and RGoB to address it earlier. If the lending institutions do not have good records of the credit history of their own borrowers, then a joint CIB is unlikely to succeed.

Project Name

Financial Sector Intermediation Facility and Equity Investment in Bhutan National Bank

Project Number
29243/29243-01/31909
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Independent project evaluation
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