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WB supports financial inclusion in marginal areas of Mexico
Submitted by mffocus1 on Mon, 12/05/2011 - 12:20
Microfinance Focus, December 5, 2011: The World Bank approved a Financial Consolidation and Inclusion Project that would target the underprivileged, indigenous, and female populations in Mexico’s rural areas. A US$100 million loan will be provided to improve the performance of the country’s credit and savings institutions.
The financial inclusion program envisions several activities, including improving the performance of credit and savings institutions through training and technical assistance, database creation and improvements to financial communications systems. Also one of its aims is to expand access to financial products and services, thus widening the user base, providing more options for financial services and greater financial education.
The program is geared towards improving the performance of the National Savings and Financial Services Bank (Banco del Ahorro Nacional y Servicios Financieros, BANSEFI); the project will expand technological capacities and train staff, as well as the staff of new institutions participating in the program.
“Access to formal financial services promotes economic and social development. Financial inclusion has always been a priority for Mexico’s development agenda. However, insufficient financial education, distrust of credit and savings institutions, as well as their limited access and lack of product and service variety, become obstacles to overcome,” said Gloria M. Grandolini, World Bank Director for Mexico and Colombia.
The 120 institutions participating in the program will be certified by the National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores, CNBV). The project will benefit mostly low-income groups. Also it hopes to strengthen the country’s credit and savings institutions, making it possible for them to expand their package of financial services offerings, especially in marginal areas of the country’s 1,250 municipalities.
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