FINANCIAL SYSTEMS MO

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The Financial System Modernization Project will support the modernization and strengthening of the financial system, thereby improving its ability to mobilize and allocate financial resources efficiently. Specific objectives include : 1) provide a modern legislative, regulatory, and supervisory framework for banking and securities markets; 2) strengthen the operations of the domestic banks by improving their management policies, procedures and capabilities as well as their long term financial viability; 3) develop the data processing infrastructure for the banking system; 4) develop the market for the issue and trading of securities; and 5) improve the transparency and reliability of accounting information of financial institutions. The project scope includes the following components : a) technical assistance for strengthening the legislative framework, regulations and supervision of banking, including support for the State Bank Supervision Agency; b) strengthening of participating banks, through instituional development programs; c) development of banking infrastructure, including strengthening the bankers training center; d) technical assistance and training for development of a securities market and establishemnt of a stock exchange; and e) modernization of the accounting and auditing framework to international standards, and initiation of a program of professional development.