 |
 Send your case studies here! |
|
Population (millions) |
100.9 |
|
Gross domestic savings (% of GDP) |
18.3% |
|
% Population under $2/day (PPP) |
24% |
|
Regulated microfinance institutions |
Savings and Loan Cooperatives, Popular Financial Partnerships (specialized financial institutions), Bansefi (Bank for National Savings Financial Services), a government institution which provides savings services, infrastructure development, and financial and technical support to microbanking institutions. |
|
Non-regulated sources of microfinance |
NGOs under the government sponsored program, PRONAFIM (National Program for Financing the Microentrepreneur). |
» More country data from the Microfinance Information Exchange Market
General Approach to Regulating
Based on the Comparative Database on Microfinance Regulation by the IRIS Center of the University of Maryland| Savings and Loan Cooperatives | Popular Financial Partnerships | Bansefi | Commercial Banks | |
|
Definition or description of institution |
Provide savings and loans; facilitate access to credit for members; support the financing of micro, small and medium enterprises; and in general, foment the social and economic well-being of members and their communities. Cooperatives will be assigned different operational levels affecting the size and scope of operations; levels determined according to the institution's assets and liabilities, the number of members or clients, the geographical location, and the technical and operational capacity of the institution. size and scope of operations. |
Provide savings and loans; facilitate access to credit for its members; support the financing of micro, small and medium enterprises; and in general, foment the social and economic well-being of its members and the communities in which they operate. Partnerships will be assigned different operational levels affecting the size and scope of operations; levels determined according to the institution's assets and liabilities, the number of members or clients, the geographical location, and the technical and operational capacity of the institution. size and scope of operations. |
Promote a savings culture and collaborate with other government agencies in the distribution of subsidies; provide wholesale funds for microbanking intermediaries; provide technical assistance, and information campaign to promote the microbanking network. (IADB 2002) |
Two types of banks: multiple bank institutions and development bank institutions. Banking activity refers to acquiring resources from the public through deposits and reallocate them back through credits. |
|
Guidelines & restrictions on financial services |
Permitted: Depends on operation level, including: on site, savings, term, and retrievable deposits, receive loans and credit from national and international credit institutions, provide liquidity loans to MFIs, receive credit from the affiliated Federation, provide leasing contracts for computer and transportation equipment, provide real estate leasing contracts, provide guarantees, receive and execute payment orders in domestic currency, grant loans, invest in securities, provide credit cards, etc. Prohibited: Cannot provide loans outside of its social objective or Operational Level assigned to it by the Commission. Cannot receive stocks and certificates of paid in capital as guarantees for loans provided to its members. |
Permitted: Depends on operation level, including: on site, savings, term, and retrievable deposits, receive loans and credit from national and international credit institutions, provide liquidity loans to MFIs, receive credit from the affiliated Federation, provide leasing contracts for computer and transportation equipment, provide real estate leasing contracts, provide guarantees, receive and execute payment orders in domestic currency, grant loans, invest in securities, provide credit cards, etc. Prohibited: Cannot provide loans outside of its social objective or Operational Level assigned to it by the Commission. Cannot receive stocks and certificates of paid in capital as guarantees for loans provided to its members. |
Permitted: issue and guarantee stocks, guarantee third party liabilities, establish savings programs, acquire credit, issue participation certificates on fideicomisos, provide financing for public funds. Receive deposits (on site, demand, term), accept credit and loans, issue bonds and subordinated debt, provide discounts and credit and loans, issue credit cards and assume obligations of third parties, issue letters of credit, etc. |
Permitted: Receive deposits (on site, demand, term), provide credits and loans, issue bank bonds, issue subordinated debt, accept credits and loans, expedite credit cards, etc. Prohibited: using bank's property or securities as a guarantee. |
» Download Country Profile of Microfinance Regulation
WOCCU's Savings Mobilization Programs in Latin America (88 KB, PDF)
"Adapting to the Challenges of Changing Financial Paradigms WOCCU's Savings Mobilization Programs in Latin America", 2003B
This paper presents the case study of the savings methodology employed by the World Council of Credit Unions, Inc. (WOCCU) in its Latin America programs in Bolivia, Ecuador, Guatemala, Mexico and Nicaragua.
In Latin America, WOCCU has implemented credit union strengthening programs in Bolivia, Ecuador, El Salvador, Guatemala, Honduras, Mexico and Nicaragua. WOCCU experience repeatedly demonstrates that credit unions which combine financial discipline with demand driven products and aggressive outreach can both satisfy local demand for savings services and generate stable, long-term financing to meet member demand for credit services.
The Savings Mobilization strategy of BANSEFI, 2005
By BENSEFI
Due to the lack of depth of the Mexican financial market, there are approximately 480 intermediaries that offer financial services to the poor. To promote the transformation of many of these semi-formal institutions, President Fox has recently designed a new law that specifies the creation of a development bank called BANSEFI.
This presentation explains in detail:
- The progress made in the promotion of savings in
- The objectives, network structure and strategy of BANSEFI
- Its technical assistance and its commercial alliance with the cooperatives to create "La Red de la Gente"
La Estrategia de Movilizacion del Ahorro de BANSEFI
Debido a la falta de profundidad del mercado financiero mexicano, hay casi 480 intermediarios que ofrecen servicios financieros a los pobres. Con el objetivo de promover la transformacion de muchas de estas instituciones semi-formales, el presidente Fox ha disenado una politica publica que ha dado pie a la creacion de un banco de desarrollo llamado, BANSEFI
Esta presentacion explica en detalle
- Los avances el la promocion del ahorro en Mexico
- Los objetivos, estructura en red y estrategia de BANSEFI
- Su asistencia tecnica y la alianza comercial con las cooperativas de ahorro llamada "La Red de la Gente"
Caja Popular Mexicana
"Note from the Field: Mexico",2004
By Barry Lennon
This was the right project at the right time," concluded Barry Lennon after his visit to the Caja Popular Mexicana (CPM), Mexico's largest savings and loan cooperative. Lennon's Note is a story of an effective collaboration that is helping the CPM become a more efficient and profitable microbanking institution while providing valuable financial services to the citizens in 24 of Mexico's 31 states. "In the two-and-a-half years since WOCCU began work, CPM's membership has doubled and reached 737,477, assets have increased by $233 million (50 percent), savings grew by $188 million (45 percent), and the outstanding loan portfolio grew by $216 million (71 percent). During the same period, loan delinquency declined from 18.6 percent to 5.8 percent, operating efficiency--operating costs divided by average assets--improved to 7.6 percent, and net income during the first six months of 2004 was about $10 million, up from a net of $32,000 in 2001.
The Caja also launched an initiative to attract younger members (those younger than 18 years). These members cannot borrow, but they can open savings accounts, and over time build a savings history that will help them access other CPM services when they turn 18. This process helps young people to grow into responsible members and borrowers. Youth membership has grown from 2,336 in December 2001 to over 175,000 accounts in June 2004, very impressive results in a short period of time.
Community Savings Funds: Providing Access to Basic Financial Services in Marginalized Rural Areas of Mexico
By Gabriela Zapata, 2002
This paper describes the characteristics and results of the Community Savings Funds (CSFs) promoted by the Ministry of Agriculture in Mexico. These funds allow the marginalized community groups to save and administer their own funds securely, efficiently, and profitably. See also: Mexico Country-Level Savings Assessment Report, CGAP, 2005
Savings, credit and the self-finance of crop production in Mexico, 2000, by van Greuning H. & Brajovic-Bratanovic S. Community Savings Funds - Providing Access to Basic Financial Services in Marginalized Rural Areas of Mexico, 2002, by Zapata, G. Rural Finance: Savings Mobilization Potential and Deposit Instruments in Marginal Areas in Mexico, Carlos Cuevas and Pilar Campos
The paper concludes that: