Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Enabling Policies for the Development of Integrated Financial Services in Mexico’s Marginal Rural Areas: Lessons from the Rural Microfinance Technical Assistance Project (PATMIR) Gabriela Zapata Álvarez INTERNATIONAL CONFERENCE ON RURAL FINANCE RESEARCH Rome, 20 March 2006 SUBSECRETARÍA DE DESARROLLO RURAL Dirección General de Programas Regionales y Organización Rural Dirección de Fomento de Organizaciones Financieras BANKING THE RURAL POOR RURAL MUNICIPALITIES WITH VERY HIGH, HIGH AND MEDIUM MARGINALITY LEVELS* with at least 70% of new users living in communities of ≤10,000 inhabitants DIVERSIFIED POPULATION: women, men, adolescents, childen, artisans, farmers, housewives, teachers, migrant workers, entrepreneurs, etc. MULTIPLE FINANCIAL SERVICES that are savings-based and demanddriven: savings accounts, investment, credit, remittances, insurance, check-cashing, utility payments, distribution & recovery of government subsidies, etc. *INEGI: Instituto Nacional de Estadística, Geografía e Informática Comprises 3 strategic elements: 1. New Regulatory Framework: Popular Savings & Credit Act (PSCA) 2. BANSEFI becomes a Development Bank with 3 mandates: Promote a savings culture (emphasizing lower-income populations) Become the Sector’s Central Bank Coordinate the Federal Government’s tempiorary support package to the Sector 3. Federal Government’s temporary support package to strengthen the institutional capacity of the Sector: L@ Red de la Gente Technical Assistance Studies, monitoring & Impact Evaluation Training Promotional Campaign Tecnological Platform Training of Supervision Committees PSCS = Popular Savings & Credit Sector –Provide security to savers participating in the PSCS Objetives: –Order, develop & consolidate popular financial institutions April 2001 2001-2005 Jan. 2006 PSCA Approval Transition • Authorization • “Conditioned Extension”- Dec 2008 PSCS adjusts operations, organization and indicators to comply with regulation Conduct General Assembly, obtain B+,B, C grade, Work Plan FEDERAL GOVERNMENT SUPPORT PACKAGE TO PROMOTE FORMALIZATION MRA=Marginal Rural Areas Promote access to formal financial services that are savings-based, demand-driven and sustainable in marginal rural areas through the provision of specialized TA INTEGRATED REGIONAL STRATEGY LED BY SPECIALIZED TECHNICAL ASSISTANCE PROVIDERS FI SELECTION CRITERIA: SPECIALIZED TA PROVIDER Willingness & capability to comply with the law Willingness & capability to expand services to marginal rural areas CONTRACT: Work Plan Willingness to work with specialized agency according to Contract & Work Plan CSG Field Promoters Mobile Services FI: Financial Intermediary CSG: Credit & Savings Group FI T A FI Branches CSG Service Point TA Provision of specialized technical assistance & training to FI’S by highly-qualified Consultant Firms selected through an international tendering process for a period of 3-5 years COST COMPENSATION FOR EXPANSION Provision of targeted & declining subsidies for branch expansion and operation for a period of up to 3 years per branch TA COST-COMPENSATION FOR EXPANSION 7 Regional Projects = 10 States • Chiapas-Tabasco • Huastecas • Puebla-Tlaxcala Huasteca Michoacán • Guerrero • Oaxaca Puebla y Tlaxcala Veracruz Guerrero Oaxaca • Veracruz • Michoacán Chiapas y Tabasco F E E D B A C K STUDIES PANEL SURVEY Use of financial services, household expenditures and assets, economic activities of the household, receipt of remittances, and economic shocks faced by the household. BANSEFI & SAGARPA 5 years (2004-2008) 5,800 households 1,492 reside in communities served by PATMIR FIs 2/3 of sample are rural & 1/3 is urban Treatment: ½ “banked” – Matched: ½ “unbanked” Analysis so far: Base-line (2004), comparing clients of PSCS as a whole vs PATMIR FI clients PATMIR PSCS PATMIR PSCS (All) (All) (Rural) (Rural) 5.2 yrs 6.3 yrs 4.6 yrs 5.3 yrs Monthly income (median) mp$2,520 mp$3,780 mp$2,400 mp$2,520 Monthly expenditures (median) mp$1,970 mp$3,199 mp$1,770 mp$2,350 Durables: mp$3,000 House size: 3 rms Piped water: 24% Durables mp$4,800 House size: 3.5 rms Piped water: 62% House size: 2.9 rms Piped water: 39% House size: 3.1 rms Piped water:39% Education Level of Female Head Assets PSCS = Popular Savings & Credit Sector PATMIR is attracting clients with lower income and wealth levels in both rural and urban areas Banked and unbanked populations have very similar characteristics in rural areas 61% opened their account after PATMIR Remittances are important: Receivers – Median acc. balance: mp$4,350 Non-receivers – Median acc. balance: mp$1,200 Loans to PATMIR clients: 2/3 of rural clients & 38% of urban Neither home nor land ownership is significantly associated with having a loan. Level of education is not a factor for obtaining a loan in the PATMIR sample Selective Multi-annual Innovative STANDARDIZED FRAME OF REFERENCE (LACP-GAE) Intensive On-site Compensatory TA Results Oriented Marginal rural population constitutes a viable market. Providing financial services in marginal rural areas does not impede compliance with regulatory requirements. Synergies among all actors are important to ensure win-win scenarios. Creation of FIs more expensive than Expansion, but adequate in some cases. Operational sustainability can be achieved by new FIs in 3-5 years. Obstacles to providing services to the rural poor can be overcome through adaptation and innovation. Various models and approaches can be used to reach the rural poor successfully. GABRIELA ZAPATA ÁLVAREZ Director of Promotion of Financial Organizations SAGARPA – MÉXICO Email: [email protected]