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: 8 | ARCHIVED on 04-Apr-2016 | ISR22923 | 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: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 4/4/2016 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 the technical mission conducted in March 2016. Following a general slowdown in implementation as BANSEFI was going through a restructuring, the Project has resumed its implementation and has completed the activities that had been agreed to in the past five months. Indeed, since November, BANSEFI: (i) rolled out the Financial Inclusion Program (PROSPERA/BANSEFI) to a first million beneficiaries who received a bank account, a debit card, a financial literacy program and, for over 600,000 of them, additional financial services (credit, savings and/or insurance), (ii) reached an agreement and received the approval of CNBV for a partnership with Yastas and its 1,800 points of sales for correspondent services, (iii) reached one million beneficiaries through its PATMIR program, offering financial services in marginal areas to people who were not previously using any formal financial services (58% women and 29% from indigenous areas); (iv) conducted and evaluated a financial education program for children in cooperation with the Ministry of Education; (v) launched the evaluation of the PATMIR program and (vi) continued the support towards an orderly exit of 29 financial institutions that failed to receive authorization from CNBV (representing about 250,000 clients/members and MX$2.6 billion in total assets). This progress is expected to positively impact disbursement which is realistically expected to be US$11 million during Q1 and Q2 of calendar year 2016. 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 4/4/2016 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) PHINDPDOTBL  Number of entities certified by CNBV, the regulator (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 104.00 195.00 195.00 224.00 Date 30-Oct-2011 15-Jun-2015 31-Dec-2015 30-Dec-2016 PHINDPDOTBL  Number of entities merged or liquidated (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 15.00 30.00 32.00 40.00 Date 30-Oct-2011 31-May-2015 31-Dec-2015 30-Dec-2016 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 79/92 156/177 166/ 193 Date 30-Oct-2011 31-May-2015 31-Dec-2015 30-Dec-2016 PHINDPDOTBL  Average of non-performing loans for certified institutions (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 8.75 6.67 6.32 7.25 Date 30-Oct-2011 31-May-2015 31-Dec-2015 30-Dec-2016 PHINDPDOTBL  Clients mainstreamed into formal financial sector (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 6.12 8.40 9.00 8.00 4/4/2016 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) Date 30-Oct-2011 31-May-2015 31-Dec-2015 30-Dec-2016 PHINDPDOTBL  Number of service points providing financial services (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1827.00 2956.00 3006.00 3750.00 Date 30-Oct-2011 31-May-2015 31-Dec-2015 30-Dec-2016 PHINDPDOTBL  Number of members financially included through PATMIR (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 691628.00 825404.00 977950.00 Date 30-Oct-2011 31-May-2015 31-Dec-2015 30-Dec-2016 PHINDPDOTBL  of which women (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 58.90 58.30 50.00 Overall Comments Intermediate Results Indicators 4/4/2016 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 0.00 164.00 164.00 180.00 Date 30-Oct-2011 31-May-2015 31-Dec-2015 30-Dec-2016 PHINDIRITBL  Entities receiving training and technical assistance for operational improvement (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 155.00 160.00 150.00 Date 30-Oct-2011 31-May-2015 31-Dec-2015 30-Dec-2016 PHINDIRITBL  Number of entities assessed for mergers, assets/liability transfers or liquidation (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 9.00 39.00 46.00 42.00 Date 30-Oct-2011 31-May-2015 31-Dec-2015 30-Dec-2016 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 -- Date 30-Oct-2011 30-Mar-2014 30-Mar-2014 -- 4/4/2016 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 90/92 150/159 182 210 Date 30-Oct-2011 30-Mar-2014 31-Dec-2014 30-Dec-2016 PHINDIRITBL  Mobile phone pilot (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Lessons learned and Value Inicial pilot design 80% 80% strategy developed Date 30-Oct-2011 31-May-2015 31-May-2015 30-Dec-2016 PHINDIRITBL  IT Platform Uptime (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 99.86 99.98 98.00 99.90 Date 30-Oct-2011 31-May-2015 31-Dec-2015 30-Dec-2016 PHINDIRITBL  Processor Utilization (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 82% 57% 40% Less than 70% Date 30-Oct-2011 14-Sep-2014 31-Dec-2015 30-Dec-2016 4/4/2016 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 11.2 Mbps 18.4 Mbps 20 Mbps Date 30-Oct-2011 14-Sep-2014 31-Dec-2015 30-Dec-2016 PHINDIRITBL  Number of entities receiving technical support to use IT Platform (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 71.00 74.00 40.00 Date 30-Oct-2011 31-May-2015 31-Dec-2015 30-Dec-2016 PHINDIRITBL  Reduction in man-hours spent on resolving errors (Hours, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 120.00 20.00 24.00 40.00 Date 30-Oct-2011 14-Sep-2014 31-Dec-2015 30-Dec-2016 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 5.68 Hours 6.3 Hours Date 30-Oct-2011 14-Sep-2014 31-Dec-2015 30-Dec-2016 4/4/2016 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 95.00 283.00 255.00 2500.00 Date 30-Oct-2011 14-Sep-2014 31-Dec-2015 30-Dec-2016 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 54.64 45.36 55% 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 4/4/2016 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 Related Project(s) There are no related projects. 4/4/2016 Page 9 of 9 Public Disclosure Copy