Public Disclosure Copy The World Bank Implementation Status & Results Report Savings and Credit Sector Consolidation and Financial Inclusion Project (P123367) Savings and Credit Sector Consolidation and Financial Inclusion Project (P123367) LATIN AMERICA AND CARIBBEAN | Mexico | Finance & Markets Global Practice | IBRD/IDA | Specific Investment Loan | FY 2012 | Seq No: 10 | ARCHIVED on 24-Apr-2017 | ISR27372 | Implementing Agencies: Key Dates Key Project Dates Bank Approval Date:01-Dec-2011 Effectiveness Date:02-Apr-2012 Planned Mid Term Review Date:01-Oct-2013 Actual Mid-Term Review Date:18-Nov-2013 Original Closing Date:31-Jul-2015 Revised Closing Date:21-Jul-2017 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the project is to support the: (a) consolidation of the savings and credit sector institutions (SCI); and (b) deepening of financial inclusion in selected areas and selected locations in Mexico. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Consolidation and Strengthening of savings and credit institutions (SCIs):(Cost $25.75 M) Broadening Access to financial services and products:(Cost $140.05 M) Strengthening BANSEFI capacity:(Cost $26.07 M) Project Management:(Cost $17.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Moderate  Moderate 4/24/2017 Page 1 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Savings and Credit Sector Consolidation and Financial Inclusion Project (P123367) Implementation Status and Key Decisions This ISR reflects the findings of a visit conducted to Mexico City from February 14 –February 17, 2017. The project continues to make satisfactory progress towards Project Development Objectives (PDO), with principal PDO indicators either near or surpassing project targets. Key results include: • The Regional Rural Microfinance Technical Assistance Program (PATMIR) has surpassed its target with 1.03 million members having joined the formal financial sector through partner Savings and Credit Institutions, and is now winding down. Of these clients, 59% are women and 29% are from indigenous regions. • To strengthen the popular finance sector in 2016, 249 TA requests were provided. CNBV authorized another 7 savings and credit associations (SOCAPs), thereby bringing the total to 198 authorized entities (98% of project target). The financial soundness indicators of the sector have improved, with non-performing loans having dropped from 8.75% (Dec. 2011) to 5.84% (Dec. 2016). • Following a slow start, substantial progress is being made on banking agents (corresponsales) to increase financial services, supported by the rapid roll-out of the BANSEFI-Yastás agreement. The agreement with Yastás only began in August 2016, but by year-end 2016, 2,195 corresponsales were operating with BANSEFI. Some results indicators were adjusted in the December 2016 restructuring that also extended the closing date of this project from December 31, 2016 to July 21, 2017. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Moderate  Moderate Macroeconomic  --  Moderate  Moderate Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Low  Low Institutional Capacity for Implementation and Sustainability  --  Low  Low Fiduciary  --  Low  Low Environment and Social  --  Low  Low Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Moderate  Moderate Results Project Development Objective Indicators PHINDPDOTBL  Number of entities certified by CNBV, the regulator (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 4/24/2017 Page 2 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Savings and Credit Sector Consolidation and Financial Inclusion Project (P123367) Value 104.00 200.00 198.00 202.00 Date 30-Oct-2011 30-Sep-2016 31-Dec-2016 21-Jul-2017 PHINDPDOTBL  Number of entities merged or liquidated (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 15.00 36.00 38.00 40.00 Date 30-Oct-2011 30-Sep-2016 31-Dec-2016 21-Jul-2017 PHINDPDOTBL  Number of reporting certified institutions with a capital adequacy ratio 150% of minimun requirement or above */ (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 79/92 163.00 173.00 170.00 Date 30-Oct-2011 30-Sep-2016 30-Sep-2016 21-Jul-2017 PHINDPDOTBL  Average of non-performing loans for certified institutions (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 8.75 6.01 5.84 7.25 Date 30-Oct-2011 30-Sep-2016 31-Dec-2016 21-Jul-2017 PHINDPDOTBL  Clients mainstreamed into formal financial sector (number in millions) (Number, Custom) 4/24/2017 Page 3 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Savings and Credit Sector Consolidation and Financial Inclusion Project (P123367) Baseline Actual (Previous) Actual (Current) End Target Value 6.12 9.30 9.35 8.00 Date 30-Oct-2011 30-Sep-2016 31-Dec-2016 21-Jul-2017 PHINDPDOTBL  Number of service points providing financial services (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1,827.00 3,329.00 5,228.00 5,400.00 Date 30-Oct-2011 30-Sep-2016 31-Dec-2016 21-Jul-2017 PHINDPDOTBL  Number of members financially included through PATMIR (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,029,534.00 1,027,449.00 977,950.00 Date 30-Oct-2011 30-Sep-2016 31-Dec-2016 21-Jul-2017 PHINDPDOTBL  of which women (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 58.70 58.80 50.00 Overall Comments Intermediate Results Indicators 4/24/2017 Page 4 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Savings and Credit Sector Consolidation and Financial Inclusion Project (P123367) PHINDIRITBL  Entities receiving training and technical assistance for certification (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 168.00 168.00 170.00 Date 30-Oct-2011 30-Sep-2016 31-Dec-2016 21-Jul-2017 PHINDIRITBL  Entities receiving training and technical assistance for operational improvement (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 171.00 175.00 171.00 Date 30-Oct-2011 30-Jun-2016 31-Dec-2016 21-Jul-2017 PHINDIRITBL  Number of entities assessed for mergers, assets/liability transfers or liquidation (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 9.00 57.00 58.00 60.00 Date 30-Oct-2011 30-Sep-2016 31-Dec-2016 21-Jul-2017 PHINDIRITBL  Number of institutions that improved their performance towards certification (to be monitored until certification deadline) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 176.00 176.00 176.00 Date 30-Oct-2011 30-Mar-2014 30-Mar-2014 21-Jul-2017 4/24/2017 Page 5 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Savings and Credit Sector Consolidation and Financial Inclusion Project (P123367) PHINDIRITBL  Number of reporting certified institutions with a capital adequacy ratio 100% of minimum requirement or above (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 90/92 175.00 185.00 180.00 Date 30-Oct-2011 30-Sep-2016 31-Dec-2016 21-Jul-2017 PHINDIRITBL  Mobile phone pilot (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Lessons learned and Value Initial pilot design 80% N.A strategy developed Date 30-Oct-2011 30-Jun-2016 31-Dec-2016 21-Jul-2017 PHINDIRITBL  IT Platform Uptime (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 99.86 100.00 100.00 99.90 Date 30-Oct-2011 30-Sep-2016 31-Dec-2016 21-Jul-2017 PHINDIRITBL  Processor Utilization (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 82% 47% 50% Less than 70% Date 30-Oct-2011 30-Sep-2016 31-Dec-2016 21-Jul-2017 4/24/2017 Page 6 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Savings and Credit Sector Consolidation and Financial Inclusion Project (P123367) PHINDIRITBL  Bandwidth Utilization (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 9.6 Mbps 12 Mbps 13.5 Mbps 20 Mbps Date 30-Oct-2011 30-Jun-2016 30-Jun-2016 21-Jul-2017 PHINDIRITBL  Number of entities receiving technical support to use IT Platform (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 75.00 75.00 40.00 Date 30-Oct-2011 30-Jun-2016 31-Dec-2016 21-Jul-2017 PHINDIRITBL  Reduction in man-hours spent on resolving errors (Hours, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 120.00 16.90 3.60 40.00 Date 30-Oct-2011 30-Sep-2016 31-Dec-2016 21-Jul-2017 PHINDIRITBL  Reduction in time required for end-of-day batch runs (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Less than 6 Value 7.8 Hours 5.70 7.90 Hours Date 30-Oct-2011 30-Sep-2016 31-Dec-2016 21-Jul-2017 4/24/2017 Page 7 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Savings and Credit Sector Consolidation and Financial Inclusion Project (P123367) PHINDIRITBL  Number of access points for correspondent agents (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 95.00 2,118.00 2,161.00 2,300.00 Date 30-Oct-2011 31-Dec-2016 31-Dec-2016 21-Jul-2017 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P123367 IBRD-81070 Effective USD 100.00 100.00 0.00 64.23 35.77 64% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P123367 IBRD-81070 Effective 01-Dec-2011 13-Dec-2011 02-Apr-2012 31-Jul-2015 21-Jul-2017 Cumulative Disbursements 4/24/2017 Page 8 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Savings and Credit Sector Consolidation and Financial Inclusion Project (P123367) Restructuring History Level 2 Approved on 31-Jul-2014 ,Level 2 Approved on 13-Dec-2016 Related Project(s) There are no related projects. 4/24/2017 Page 9 of 9 Public Disclosure Copy