Action 1: 3.1.a. RMA Executive Committee approved the listing rules for government bonds and bills for implementation immediately to facilitate secondary market trading. 3.1.b. Government (Ministry of Finance-MoF) listed all outstanding and new treasury bonds on the Royal Securities Exchange of Bhutan (RSEB) to facilitate secondary market transaction. Sources - Listing Rules with confirmation of approval by RMA and listing of government bonds on the RSEB announced on RSEB's website and issuance of government bonds announced on MoF's website. Target date: 2021-09-30 Action 2: 3.2.a. RMA Executive Committee approved revised rules and regulations pertaining to the Alternative Investment Market (AIM) Board for immediate implementation to increase participation by Micro, Cottage, Small, Medium and Large Enterprises (MCSML) and investors on AIM. Sources - Revised rules and regulations and confirmation of approval by RMA. 3.2.b. RMA Executive Committee approved the revised regulations on the issuance of equity and bonds by companies including (i) trading market rules and regulations, (ii) market trade reporting rules, and (iii) listing rules to align with evolving market conditions and revised AIM rules for implementation with effect from 28 August 2021. Sources - Revised regulations on issuance of equity and bonds and confirmation of approval by RMA. 3.2.c. Office of the Registrar approved Corporate Governance & Corporate Social Responsibility Regulations on September 1, 2021 to be adopted by all issuers of debt and equity to improve transparency. Source - Corporate Governance and Corporate Social Responsibility Regulations document approved by the Office of the Registrar. Target date: 2021-09-30 Action 3: 3.3. RMA issued directives based on housing market demand survey conducted by MoWHS which included gender focused data collection to facilitate affordable housing finance products encompassing tenure, loan to value, and preferential risk weights. Source - Report on housing market demand based on survey and RMA directives as described published on their website. Target date: 2021-09-30 Action 4: 3.4. RMA Board approved the Insurance Sector Strategy for implementation by 1 September 2021 which incorporates widening the scope of insurance products and alternative investments. Source - Strategy document and confirmation of RMA board approval. Target date: 2021-09-30 Action 1: 3.5. RMA Executive Committee approved an NPL management Strategy including: (i) foreclosure guidelines, and (ii) write-off policy and asset transfer Policy to be adopted by both banks and nonbanks by 1 September 2021. Source - NPL Management Strategy document approved by RMA. Target date: 2021-09-30

Policy 2: Strengthening the integrity and stability of the financial system Outcome 1: f. Share of adults who have access to life insurance is at least 20%. (2018 baseline: 18%) Source: RMA monthly report December 2020 16.8% Source: State of Financial Inclusion annual report, (https://www.rma.org.bt/) Action 2: 3.6. RMA Executive Committee approved and issued for compliance by all financial institutions the following with effect from September 1 2021: (i) updated guidelines on Capital Markets, and Money Service Businesses based on sections1 of the Guideline on Anti Money Laundering and Countering of Financing of Terrorism for Capital Market Intermediaries 2020 and (ii) sections 313-332 of the revised Anti Money Laundering and Combating the Financing of Terrorism Rules and Regulations, 2018. Source - Guidelines approved by RMA Executive Committee Target date: 2021-09-30 Action 3: 3.7 a. RMA strengthened the risk-based monitoring based on Basel III guidelines with effect from 1 September 2021 for financial sector by having, (i) approved Risk-Based Supervision Manual, (ii) completed stress testing of all banks, (iii) completed stress testing on non-insurance business of insurance companies, and 3.7 b. RMA developed guidelines on stress testing on insurance companies for the insurance business effective from 1 September 2022. Sources - Confirmation letter from RMA that (i) through (iii) had been completed. Confirmation letter from RMA that the guidelines for stress testing for insurance companies has been developed and the guidelines document. Target date: 2021-09-30 Action 4: 3.8 The RMA Executive Committee developed and approved the Guidelines on Trade Receivables Discounting System with effect from 1 January 2021 to assist commercial banks in implementing relevant sections on trade receivable discounting under the Payment and Settlement System Rules and Regulations approved by the RMA Board in 2018. Source - Guidelines and Directives on Trade Receivables Discounting System issued by RMA Target date: 2021-09-30 Action 5: 3.9 RMA issued guidelines, with effect from 1 September 2021, on compliance with IFRS 9 by financial institutions to ensure consistency in reporting and improve risk assessment. Source- Guidelines on IFRS 9 Implementation in Financial Institutions. Target date: 2021-09-30 Action 6: 3.10 RMA Board approved the Policy on Centralized Data Warehouse and Data Analytics for implementation with effect 28 August 2021, to ensure better access to information and decision making with focus on gender disaggregated data in all relevant templates. Source - Policy document approved by RMA. Target date: 2021-09-30 Action 1: 3.5. RMA Executive Committee approved an NPL management Strategy including: (i) foreclosure guidelines, and (ii) write-off policy and asset transfer Policy to be adopted by both banks and nonbanks by 1 September 2021. Source - NPL Management Strategy document approved by RMA. Target date: 2021-09-30

Policy 2: Strengthening the integrity and stability of the financial system NA Action 2: 3.6. RMA Executive Committee approved and issued for compliance by all financial institutions the following with effect from September 1 2021: (i) updated guidelines on Capital Markets, and Money Service Businesses based on sections1 of the Guideline on Anti Money Laundering and Countering of Financing of Terrorism for Capital Market Intermediaries 2020 and (ii) sections 313-332 of the revised Anti Money Laundering and Combating the Financing of Terrorism Rules and Regulations, 2018. Source - Guidelines approved by RMA Executive Committee Target date: 2021-09-30 Action 3: 3.7 a. RMA strengthened the risk-based monitoring based on Basel III guidelines with effect from 1 September 2021 for financial sector by having, (i) approved Risk-Based Supervision Manual, (ii) completed stress testing of all banks, (iii) completed stress testing on non-insurance business of insurance companies, and 3.7 b. RMA developed guidelines on stress testing on insurance companies for the insurance business effective from 1 September 2022. Sources - Confirmation letter from RMA that (i) through (iii) had been completed. Confirmation letter from RMA that the guidelines for stress testing for insurance companies has been developed and the guidelines document. Target date: 2021-09-30 Action 4: 3.8 The RMA Executive Committee developed and approved the Guidelines on Trade Receivables Discounting System with effect from 1 January 2021 to assist commercial banks in implementing relevant sections on trade receivable discounting under the Payment and Settlement System Rules and Regulations approved by the RMA Board in 2018. Source - Guidelines and Directives on Trade Receivables Discounting System issued by RMA Target date: 2021-09-30 Action 5: 3.9 RMA issued guidelines, with effect from 1 September 2021, on compliance with IFRS 9 by financial institutions to ensure consistency in reporting and improve risk assessment. Source- Guidelines on IFRS 9 Implementation in Financial Institutions. Target date: 2021-09-30 Action 6: 3.10 RMA Board approved the Policy on Centralized Data Warehouse and Data Analytics for implementation with effect 28 August 2021, to ensure better access to information and decision making with focus on gender disaggregated data in all relevant templates. Source - Policy document approved by RMA. Target date: 2021-09-30 Action 1: 3.11 RMA Board approved and implemented with effect from 28 August 2021, rules and regulations on the warehouse receipt financing to ensure financial institutions commence offering appropriate lending products. Source - Rules and regulations document approved by RMA and confirmation of implementation from RMA. Target date: 2021-09-30

Policy 3: Reform Area 3: Financial Inclusion Promoted NA Action 2: 3.12 RMA Executive Committee approved the Green Taxonomy Framework (pillar in the Green Finance Roadmap of RMA) for implementation with effect from 28 August 2021 to identify financial products and economic activities that can qualify as green investments in order that financial institutions can introduce new products and services and align existing products with the qualifying green finance definition. Source - Green Taxonomy Framework document implemented by RMA and confirmation of implementation by RMA. Target date: 2021-09-30 Action 3: 3.13 RMA board approved the FinTech Regulatory Sandbox Framework and implemented it on 29 October 2020 through setting up the FinTech website, formation of committees from relevant agencies to perform technical evaluation and produce final report on fintech ideas for sandboxing. Source - Confirmation of implementation by RMA. (www.fintechbhutan.bt) Target date: 2021-09-30 Action 1: 3.11 RMA Board approved and implemented with effect from 28 August 2021, rules and regulations on the warehouse receipt financing to ensure financial institutions commence offering appropriate lending products. Source - Rules and regulations document approved by RMA and confirmation of implementation from RMA. Target date: 2021-09-30

Policy 3: Reform Area 3: Financial Inclusion Promoted NA Action 2: 3.12 RMA Executive Committee approved the Green Taxonomy Framework (pillar in the Green Finance Roadmap of RMA) for implementation with effect from 28 August 2021 to identify financial products and economic activities that can qualify as green investments in order that financial institutions can introduce new products and services and align existing products with the qualifying green finance definition. Source - Green Taxonomy Framework document implemented by RMA and confirmation of implementation by RMA. Target date: 2021-09-30 Action 3: 3.13 RMA board approved the FinTech Regulatory Sandbox Framework and implemented it on 29 October 2020 through setting up the FinTech website, formation of committees from relevant agencies to perform technical evaluation and produce final report on fintech ideas for sandboxing. Source - Confirmation of implementation by RMA. (www.fintechbhutan.bt) Target date: 2021-09-30 Action 1: 3.11 RMA Board approved and implemented with effect from 28 August 2021, rules and regulations on the warehouse receipt financing to ensure financial institutions commence offering appropriate lending products. Source - Rules and regulations document approved by RMA and confirmation of implementation from RMA. Target date: 2021-09-30

Policy 3: Reform Area 3: Financial Inclusion Promoted NA Action 2: 3.12 RMA Executive Committee approved the Green Taxonomy Framework (pillar in the Green Finance Roadmap of RMA) for implementation with effect from 28 August 2021 to identify financial products and economic activities that can qualify as green investments in order that financial institutions can introduce new products and services and align existing products with the qualifying green finance definition. Source - Green Taxonomy Framework document implemented by RMA and confirmation of implementation by RMA. Target date: 2021-09-30 Action 3: 3.13 RMA board approved the FinTech Regulatory Sandbox Framework and implemented it on 29 October 2020 through setting up the FinTech website, formation of committees from relevant agencies to perform technical evaluation and produce final report on fintech ideas for sandboxing. Source - Confirmation of implementation by RMA. (www.fintechbhutan.bt) Target date: 2021-09-30

Office of the Registrar approved Corporate Governance & Corporate Social Responsibility Regulations on September 1, 2021 to be adopted by all issuers of debt and equity to improve transparency. Source - Corporate Governance and Corporate Social Responsibility Regulations document approved by the Office of the Registrar.

Output indicators are in the Completion Report: https://www.adb.org/sites/default/files/project-documents/51252/51252-003-51252-004-51252-005-pcr-en.pdf

RMA Board approved the Insurance Sector Strategy for implementation by 1 September 2021 which incorporates widening the scope of insurance products and alternative investments. Source - Strategy document and confirmation of RMA board approval.

RMA Executive Committee approved revised rules and regulations pertaining to the Alternative Investment Market (AIM) Board for immediate implementation to increase participation by Micro, Cottage, Small, Medium and Large Enterprises (MCSML) and investors on AIM. Sources - Revised rules and regulations and confirmation of approval by RMA. 3.2.b. RMA Executive Committee approved the revised regulations on the issuance of equity and bonds by companies including (i) trading market rules and regulations, (ii) market trade reporting rules, and (iii) listing rules to align with evolving market conditions and revised AIM rules for implementation with effect from 28 August 2021. Sources - Revised regulations on issuance of equity and bonds and confirmation of approval by RMA.

RMA Executive Committee approved the listing rules for government bonds and bills for implementation immediately to facilitate secondary market trading. 3.1.b. Government (Ministry of Finance-MoF) listed all outstanding and new treasury bonds on the Royal Securities Exchange of Bhutan (RSEB) to facilitate secondary market transaction. Sources - Listing Rules with confirmation of approval by RMA and listing of government bonds on the RSEB announced on RSEB's website and issuance of government bonds announced on MoF's website.

RMA issued directives based on housing market demand survey conducted by MoWHS which included gender focused data collection to facilitate affordable housing finance products encompassing tenure, loan to value, and preferential risk weights. Source - Report on housing market demand based on survey and RMA directives as described published on their website.