The World Bank Report No: ISR7532 Implementation Status & Results Mexico Mexico Savings & Rural Finance (BANSEFI) Project - Phase II (P087152) Public Disclosure Copy Operation Name: Mexico Savings & Rural Finance (BANSEFI) Project - Phase Project Stage: Implementation Seq.No: 16 Status: ARCHIVED Archive Date: 27-Jul-2012 II (P087152) Country: Mexico Approval FY: 2004 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Specific Investment Loan Implementing Agency(ies): BANSEFI: National Bank for Savings and Financial Services (Banco del Ahorro Nacional y Servicios Key Dates Board Approval Date 29-Jun-2004 Original Closing Date 31-Jul-2009 Planned Mid Term Review Date 02-Jan-2007 Last Archived ISR Date 01-Apr-2012 Effectiveness Date 09-Dec-2004 Revised Closing Date 31-Jul-2012 Actual Mid Term Review Date 11-May-2007 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the Project is to assist the Borrower in strengthening the SCI sector with SCIs which are compliant with the Popular Savings and Credit Law, financially viable, operationally effective, managerially sound, technologically upgraded, and providing an enhanced level of outreach and access to financial services by the underserved Mexican populations. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost STRENGTHENING SECTOR INSTITUTIONS 44.70 DEVELOPING TECHNOLOGY PLATFORM 228.10 M&E, STUDIES AND INFORMATION DISSEMINATION 20.40 PROJECT MANAGEMENT 6.40 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview The project continues to perform satisfactorily and is expected to broadly meet its development objectives: Page 1 of 6 The World Bank Report No: ISR7532 The activities of the Project are currently winding down and are expected to be completed by the Closing Date (July 31st, 2012). At the moment, 112 institutions have been authorized by CNBV. By the Closing Date, about 75% of the sector's assets and members/clients are expected to belong to institutions that have been authorized by the CNBV. Institutions representing an additional 20% of members and assets of the sector may be authorized by December 31, 2012, the date set by the law. Public Disclosure Copy Outreach has continued to grow, with the sector growing from 4 million to about 20 million clients/members (not including those who only use the sector as beneficiaries of Government Programs, the most important of which is Oportunidades). The IT Platform is being used by 372 entities and provides a wide range of services to about 10 million clients/members, not including the 9.5 million beneficiaries of Government programs such as Oportunidades payments. The impending deadline of December 31, 2012, by which all entities above the "basic" level need to be authorized by the CNBV will continue to present a particular challenge for both Bansefi, which supports the sector to reach authorized status, and CNBV, which will need to review and approve the applications for authorization or enforce the law for institutions that cannot get authorized. The deadline may change the landscape of the sector and may require Bansefi to review its business model and the Bansefi III Project to review its indicators. Bansefi is already making plans for this eventuality. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target About 200 entities assisted by the project either Text Value 370 entities already being 517 entities assisted. 112 45 new entities received TA; certified by CNBV (the regulatory agency), or assisted under the parallel entities certified, 70 identified TA completed for all Phase I identified for liquidation BANSEFI Phase I project for liquidation or merger. 43 entities; in both cases, entities considered fit for certification. either certified or identified for liquidation Date 09-Dec-2004 14-Jun-2012 31-Jul-2012 Comments The institutions certified cover 75% of the sector in terms of assets and members. This value is expected to reach Public Disclosure Copy 90% by the end of 2012. Because of changes in the law, 210 institutions are no longer required to obtain certification as they are below the legal threshold. Procedures for liquidation of identified unviable Text Value About 25-30 entities expected 12 entities merged and 4 Identified entities either entities initiated by the government to be liquidated/ merged. liquidated. liquidated or in the process of Exact number tobe known liquidation after the TA component Page 2 of 6 The World Bank Report No: ISR7532 completed. At start-of-project no entity has been identitifed for liquidation Date 09-Dec-2004 28-Jun-2012 31-Jul-2012 Public Disclosure Copy Comments Work is expected to accelerate, due to the Law deadline to request certification by December 2012, but whether this objective will be achieved will depend on whether this deadline set by the law will be enforced. Deposit Protection Fund established for the Text Value No deposit protection fund There are two A deposit protection fund SCI sector exists for the SCI sector at protection funds: one established with "seed" start-of-project for cooperatives and contribution from the another one for government to start with, and SOFIPOS. They additional contributions were established by frommember entities BANSEFI as trustee in December 2010. The entities are already depositing their protection fund fees. Date 09-Dec-2004 28-Jun-2012 31-Dec-2009 Comments Technology platform being funded under the Text Value Some form of platform is 372 At least 45% market project through BANSEEFI is embraced by available in very few, large penetration is achieved: about about 100 SCI entities entities mostly for accounting; 100 entities in the none integrate the consolidated SCI sector accounting, financial embrace the platform management, regulatory Public Disclosure Copy reporting and financial products services Date 09-Dec-2004 28-Jun-2012 31-Jul-2012 Comments This number includes all entities that use the platform for distribution of government transfers, remittances and correspondent banking. About 90 institutions Page 3 of 6 The World Bank Report No: ISR7532 have adopted the Core Banking while the other institutions (282) use various elements, including Public Disclosure Copy La@Redde la Gente or the Oportunidades program. The auxiliary supervision process carried out Text Value Under the Phase I, some Completed Supervision Committees and by the Supervision Committees, and overseen Supervision Committes have CNBV functioning efficiently by CNBV, are satisfactory been established; however, and effectively, monitoring the knowledge needs to be entities in the consolidated updated and the committees SCI sector needrecertification. CNBV needs international practices knowledge Date 09-Dec-2004 07-Feb-2011 31-Dec-2009 Comments The sector membership in the cooperative Text Value At start of this project, the Membership of the sector is The sector has about 9 million entities increases from 4 million to about 9 membership was about 4.1 about 10.1 million members by December 2009 million. million at the level of the SCI entities and BANSEFI branches Date 01-Jun-2004 28-Jun-2012 31-Dec-2009 Comments This number includes 8.6 million members of SCIs + 1.5 million Bansefi but does not include some 9.5 Oportunidades beneficiaries. Volume of Bank Support: Institutional Amount(USD) Value 180000000.00 177400000.00 Development - Microfinance Date 30-Jun-2012 31-Jul-2012 Comments Based on the retrofitting exercise for core indicators Volume of Bank Support: Enabling Amount(USD) Value 45000000.00 45000000.00 Public Disclosure Copy Environment - Microfinance Date 30-Jun-2012 31-Jul-2012 Comments Based on the retrofitting exercise for core indicators Intermediate Results Indicators Page 4 of 6 The World Bank Report No: ISR7532 Indicator Name Core Unit of Measure Baseline Current End Target Documentation for certification (or Text Value No documentation existed as Documentation for Documentation relating to all recommendation for liquidation) prepared for this is required under the new certification prepared for all entities completed and Public Disclosure Copy the participating entities and submitted to law for certification participating entities that forwarded to CNBV for CNBV sought certification (112 certification entities) Date 09-Dec-2004 30-Jun-2012 31-Jul-2012 Comments Technology platform developed under the Text Value There is no integrated Technology platform The technology platform is project tested, validated, and endorsed by the technology platform in any of has been rolled out rolled out nationally to all SCI sector entities the entities nationally to all entities requesting this facility entities requesting this facility. Date 09-Dec-2004 28-Jun-2012 31-Jul-2012 Comments Data on Financial Performance (as of 27-Jun-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P087152 IBRD-72400 Effective 29-Jun-2004 01-Oct-2004 09-Dec-2004 31-Jul-2009 31-Jul-2012 P087152 IBRD-74380 Effective 21-Mar-2007 27-Mar-2007 27-Mar-2007 31-Jul-2009 31-Jul-2012 P087152 IBRD-75920 Effective 09-Sep-2008 21-Nov-2008 21-Jul-2009 31-Jul-2012 31-Jul-2012 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P087152 IBRD-72400 Effective USD 75.50 75.12 0.38 75.12 0.00 100.00 P087152 IBRD-74380 Effective USD 29.00 29.00 0.00 29.00 0.00 100.00 P087152 IBRD-75920 Effective USD 50.00 50.00 0.00 42.31 7.69 85.00 Public Disclosure Copy Disbursement Graph Page 5 of 6 The World Bank Report No: ISR7532 Public Disclosure Copy Key Decisions Regarding Implementation None. Restructuring History CD Approved on 22-Apr-2009 Related Projects P103491-SAVINGS AND RURAL FINANCE (BANSEFI) ADDITIONAL FINANCING PROJECT, P111839-SAVINGS AND RURAL FINANCE - SECOND PHASE - ADDITIONAL FINANCING II Public Disclosure Copy Page 6 of 6