LATIN AMERICA AND CARIBBEAN Mexico Finance & Markets Global Practice IBRD/IDA Specific Investment Loan FY 2012 Seq No: 7 ARCHIVED on 18-Sep-2015 ISR20306 Implementing Agencies: Key Dates Key Project Dates Board Approval date:01-dec-2011 Planned Mid Term Review Date:01-Oct-2013 Original Closing Date:31-Jul-2015 Effectiveness Date:02-Apr-2012 Actual Mid-Term Review Date:18-Nov-2013 Revised Closing Date:31-Dec-2016 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 9/18/2015 Page 1 of 9
Implementation Status and Key Decisions This ISR reflects the findings of the supervision mission conducted in June/July 2015. The Project has continued to make progress towards its Development Objectives (DO) and is expected to meet most of its indicators, leading the DO ratings to remain Satisfactory. Because of the slow disbursement, the Implementation Progress rating remains at Moderately Satisfactory. As of June 2015, 195 entities had obtained certification and more applications are being reviewed by the regulator, suggesting that the Project target will be reached. Close to 90% of institutions meet over 150% of their capital adequacy requirements. The sector continues to grow at a faster pace than the rest of the financial sector. The PATMIR initiative, which has partnered with 192 financial entities, has yielded close to 700,000 new members. Over 58% of these members are women, 32% live in indigenous communities and 49% are from towns of less than 2,500 inhabitants. In light of the good performance of this project, the PATMIR initiative has been scaled up to now target 1 million new members. With the support towards certification having been completed, the Project is now expected to concentrate its attention for the remaining two on (i) technical support to certified institutions, (ii) support for an orderly exit of financial institutions that did not obtain certification, (iii) the scaling up of PATMIR and (iv) the roll out of a large financial education program to support the implementation of the PROSPERA MAS CON BANSEFI Government initiative. 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 9/18/2015 Page 2 of 9
Fiduciary -- Low Low Environment and Social -- Low Low Stakeholders -- Moderate Moderate Other -- -- -- Overall -- Moderate Moderate Results Project Development Objective Indicators Number of entities certified by CNBV, the regulator (Number, Custom) Value 104.00 191.00 195.00 224.00 Date 30-Oct-2011 14-Sep-2014 15-Jun-2015 30-Dec-2016 Number of entities merged or liquidated (Number, Custom) Value 15.00 29.00 30.00 40.00 Number of reporting certified institutions with a capital adequacy ratio 150% of minimun requirement or above */ (Text, Custom) Value 79/92 139/159 156/177 193 Date 30-Oct-2011 30-Mar-2014 31-May-2015 30-Dec-2016 Average of non-performing loans for certified institutions (Percentage, Custom) 9/18/2015 Page 3 of 9
Value 8.75 6.61 6.67 7.25 Clients mainstreamed into formal financial sector (Number, Custom) Value 6.12 8.10 8.40 8.00 Number of service points providing financial services (Number, Custom) Value 1827.00 2966.00 2956.00 3750.00 Number of members financially included through PATMIR (Number, Custom) Value 0.00 536692.00 691628.00 825000.00 of which women (Number, Custom Supplement) Value 0.00 58.35 58.90 50.00 9/18/2015 Page 4 of 9
Overall Comments Intermediate Results Indicators Entities receiving training and technical assistance for certification (Number, Custom) Value 0.00 161.00 164.00 180.00 Entities receiving training and technical assistance for operational improvement (Number, Custom) Value 0.00 134.00 155.00 150.00 Number of entities assessed for mergers, assets/liability transfers or liquidation (Number, Custom) Value 9.00 29.00 39.00 42.00 Number of institutions that improved their performance towards certification (to be monitored until certification deadline) (Number, Custom) Value 0.00 176.00 176.00 -- Date 30-Oct-2011 30-Mar-2014 30-Mar-2014 -- 9/18/2015 Page 5 of 9
Number of reporting certified institutions with a capital adequacy ratio 100% of minimum requirement or above (Text, Custom) Value 90/92 150/159 150/159 210 Date 30-Oct-2011 30-Mar-2014 30-Mar-2014 30-Dec-2016 Mobile phone pilot (Text, Custom) Value Inicial pilot design 80% 80% Lessons learned and strategy developed Date 30-Oct-2011 30-Dec-2016 31-May-2015 30-Dec-2016 IT Platform Uptime (Percentage, Custom) Value 99.86 99.98 99.98 99.90 Processor Utilization (Text, Custom) Value 82% 57% 57% Less than 70% 9/18/2015 Page 6 of 9
Bandwidth Utilization (Text, Custom) Value 9.6 Mbps 11.2 Mbps 11.2 Mbps 20 Mbps Number of entities receiving technical support to use IT Platform (Number, Custom) Value 0.00 11.00 71.00 40.00 Reduction in man-hours spent on resolving errors (Hours, Custom) Value 120.00 20.00 20.00 40.00 Reduction in time required for end-of-day batch runs (Text, Custom) Value 7.8 Hours 5.68 Hours 5.68 Hours Less than 6 Hours 9/18/2015 Page 7 of 9
Number of access points for correspondent agents (Number, Custom) Value 95.00 283.00 283.00 2500.00 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 50.05 49.95 50% 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 31-Dec-2016 Cumulative Disbursements 9/18/2015 Page 8 of 9
Restructuring History Level 2 Approved on 31-Jul-2014 Related Project(s) There are no related projects. 9/18/2015 Page 9 of 9