sbd achievements in the first two years of … 4_marlene... · 4,9 million in poverty 1 million not...
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SBD ACHIEVEMENTS IN THE FIRST TWO YEARS OF EFFECTIVE
IMPLEMENTATIONRESULTADOS DEL I SEMESTRE DEL 2017
6 | SETIEMBRE | 2017
Costa Rica | Cifras
Total Population4,9 million
In Poverty
1 million
Not Poor3,9
million
Women50%
Female Householders
40%
Average IncomePer household: $1737.34Per capita: $642.8243% of the population
Earns less than $800.67 a month
Fuente: Datos obtenidos del INEC.
Costa Rica | Parque Empresarial Mipyme
Fuente: ENAHOPRO - INEC - 2015
The SME business park, accordingto data from the National Survey ofProducing Households (ENAHOPRO)of INEC, in 2015, registered a totalof 460,368 independent employeesand entrepreneurs.
460.368Independent employees or
entrepreneurs
Costa Rica | Cifras
SME Business Park20.243
4.0724.563
Central RegionConcentrates 75% of the country’s economic activity
SMEsGenerate 30% of employment.
Fuente: Estado situación de la Pyme en CR 2016 - MEIC
MicroSmall
Medium
28.878 SMEs
Costa Rica |SME Business Park
Fuente: Estado situación de la Pyme en CR 2016 - MEIC
Small14.1%
Medium15.8%
Micro70.1%
Industry12%
IT5%
Commerce40%
Services43%
In 2016, SMEs accounted for 93.3% of companies in the country.
The Service and Trade sectors grouped83% of SME companies.
¿What is the BSD?
It is a public policy oriented to promote thedevelopment of SMEs of all sectors andentrepreneurships; through financing and businessdevelopment services.
It is financial inclusion and promotion.
BSD | Strategic Partners
53Operations
19Regulated SUGEF
33Non regulated
43
Public Banks
Private Banks
9 Savings and CreditCooperatives
2 Financecompanies
1 Mutual Funds
14 ServiceCooperatives
12 Microfinancing
14 Placement agents
•BSD conducts training for operators to improvemarket service abilities.
• Overall, 800 points of customer service in thecountry.
• Greater access to micro, small and mediumproducers.
• Times for appointments have been reduced.
• More expedited procedures for credits.
• Different market niches are dealt with byspecialized personnel.
Products from BSDProducts
Financial
Capital Seed
Credits•Emergency Credits
•Direct credits•Credit lines
•Production Chains
Guarantees• individual
•Portfolio Guarantess
Support for Companies:
Technical Assistance
Financial Education
Capacity building for BSD operators
¿What is the BSD?
We will be the strategic ally of SMEs in the countryfor its growth and development through financialsolutions adapted to their needs.
We promote the creation, innovation, productivityand competitiveness of SMEs in the country, throughfinancial and business support solutions.
VISION
MISSION
The work of BSD in Policies and Actions for Financial Inclusion and
Education.
Technical SecretarySeptember 2017
BSD | Legal Framework
• Development of specialized regulations.• Reduction in funding costs.• More financial operators.• Portfolio of products according to economic activities.• Dynamism in meeting the needs of the producer.• Support for entrepreneurship and seed capital of high
value generation.
Benefits of the Reform to the Law 9274
gOBLegal Legal Framework Improved
Reform of Law 8634 of the SBD through the approval of Law 9274 (November 2014)and regulated on March 9, 2015.
"The development of financial products under Law 8634 focused on loans and guarantees, with little progress in new products to support entrepreneurship." The reform of the Law gives a boost to products through the new categorization of beneficiaries (associative models, microcredit and entrepreneurs) as well as new tools.(Evaluation Committee, 2nd report, October 2016)
Topic Law 8634 and its Regulations Ley 9274 and its Regulations
Beneficiaries SMEsMediim enterprise that ahs no access to public banks.
Defines the beneficiary: micro and small enterprises, small micro agricultural producers, associative groups, microcredit beneficiaries, entrepreneurs,Medium-sized company by a reasoned exception from the Rector's Council
Priority Zones Zones outside of the main cities. Areas with less social development
Formality Requires formality of the beneficiary companies after two years
This access barrier is eliminated
Scope of the funding
Viable feasible projects technically, economically and financially
Financing and promotion of productive projects
Concept of Banking for Development
Banking for development as an obligation of public and private banks
Development Banking as a line of business with different characteristics to commercial banking
Guarantees Individual guarantees for beneficiaries with insufficient guarantees
Explicit authority for portfolio guarantees and counter-guaranteesAcknowledgment of Guarantee as unconditional and irrevocableLeverage of the guarantee fund greater than 1Guarantee for beneficiaries with insufficient guarantees
Non financialservices
Inoperability of business support services provided by INA
Powers to dictate policies to the Governing Council on the use of resources in relation to the needs of the beneficiaries of the Law.Result: Practical implementation PYMES INA.
OrientationFundamentals
Access to credit,Access to guaranteesAccess to business support servicesFinancial sustainability of resourcesDifferentiated regulation
Financial and economic inclusionReal access to financingReal access to guaranteesReal access to business support servicesEffective monitoring of resources
Perspective of Support to the Beneficiary
Topic Law 8634 and its Regulations Law 9274 and its Regulations
Financial Operators Only the SFN regulated by the General Superintendency of Financial Entities (SUGEF)
Incorporates microfinance institutions as channelers of financial resources
Structure Complex bureaucratic structure Simplifies the structure. More efficient. The Technical Secretary assumes a central role of supervision, control, coordination and follow-up of the guidelines of the Governing Council.
Fiancial Resources Inoperancia de los principales recursos de fondeo (FCD)Recursos de Bancos Privados a Públicos en calidad de préstamo. Poca posibilidad práctica de bancos privados operen sus propios recursos
Financial cost reasonablenessPublic transfer of funds for the "BriefcaseTax" for FINADEPossibility of borrowing of FINADE (trust)
Normative Diferentiated normative Minimum conditions for a prudential regulation and creation of the BSD Credit Information System
Sancitions to the SFN
Not defined Penalties of up to 1% of the equity due to negligence or fraud, coordination scheme SBD-SUGEF-CONASSIF
Control and Supervision
Scheme supervision and control: Comptroller, SUGEF; Central bank; Internal and External Audit of the participating banks in the SBD and the Technical Secretary of the BSD.Policy Recommendations and evaluation of system performance and impact: Evaluation Commission, every 4 yearsAccountability: Legislative AssemblyOthers: Joint Advisory Commission with Advice, Policy Recommendations and Impact Measurement to the Governing Board.
Supervision and Control Scheme: Comptroller, SUGEF, Internal and External Audit of the banks participating in the BSD and the Internal Audit of the BSD.BSD performance evaluation and policy recommendations and best banking and prudential practices: BCCR and Evaluation Commission (c / 4 years)Annual Accountability: Legislative AssemblyNon-regulated entities: Monitoring unit of the Technical Secretariat of the Governing Council.
Structural Perspective
Topic Law 8634 and its Regulations Law 9274 and its Regulations
Limits At least 40% to the Agricultural SectorGuarantee up to 75% of the amount of credit
At least 40% to the agricultural sectorAt least 25% to FOFIDE Microfinance; CDF; development credits of Private BanksGuarantee up to 75% of the amount of credit
Microfinance N/A Possibility of channeling resources from SBD FundsRecognition as beneficiary of the lawAccess to the Guarantee FundPossibility of securitization of your credit portfolios according to rules established by SUGEVAL (not yet implemented
Structural Perspective
Rules and Regulations
SUGEF Special Regulation and supplementary
regulations issued by BSD
The Conassif issued a special Regulation, which runs from October 2016, for themanagement and evaluation of credit risk for the Development Bank System (SUGEF15‐16), which, among other things, offers a differentiation technique according toparticular characteristics of the line of development banking business.
Operating regulations on the first and second floor credit activity of banksparticipating in the Banking System for Development (AG‐1583‐197‐2016, in effectsince January 2017)
SUGEF Agreement 15-16
The main scope of this regulation, derived from Law 9274, is as follows:
• Development banking as a line of business: second-tier banking and other development debtors.
• Methodologies backed by credit policies, corporate governance and a risk-based supervision approach.
• Look for consistency with international practices or standards.
• Simplified framework and requirements for minimum information needed in credit files.
• Consideration of the funds of guarantees and guarantees as mitigation, and the technical definition of the level of coverage (number of times) of the guarantee fund.
• Disclosure of credit information of the BSD in support of credit management.
• Microcredit risk rating according to the nature of development operations
• Consideration of security interests as risk mitigation.
• Development of CIC BSD, debtor central.
• Weighting of microcredits in 75% in solvency ratio.
• Recognition of group credits as a form of financing.
BSD Agreement AG-1583-197-2016
It develops the figure of Correspondents banking under two modalities:
Bank Correspondents
Placement Agents (1st floor
bank)
Correspondent Agents (assumes only part of the credit process)
The following aspects are regulated:FormalityResponsibilitiesInfrastructureIts functions vis-à-vis the beneficiaryControl and Transparency
•Second floor bank•1rst and 2nd floor operation
•Placement agent and correspondent
•Beneficiary and operator profile
Definitions
•Operator’s accreditation•Program Authorization• Correspondent’s Registry
Authorization Process
•About beneficiaries of law•About goals and limits•Selection of agents (contracts)
Corp. Governance Responsibilities
•Program Risks•Credit Process•Case file
Management of risks and credit process.
•Plans•Effective rate.
Release of information
•Responsability.•Capture, verification, remission
Information
•Responsabiilities•Prohibitions
Agents
BSD Agreement AG-1583-197-2016: Structure of the Regulations
CAR: Banking opportunities tailored for the rural sector
Products
– They are Rural Support Councils (CARs) that emulate the former figure of rural credit boards of the National Bank (no longer active).
– The new BNCR Program with BSD support includes:• Microcredit with a threshold of ₵ 5million• Portfolio guarantees• Business Development Resources
– Scheme for Bank Correspondents in areas of low financial penetration:– First C.A.R .: Agricultural Centers of Nandayure and Tarrazú, Azada Cariari,
Bijagua Association– It is based on: Customer knowledge, small division of operations and
simplified procedures
CAR: Synergy of Participantsand Products
PARTICIPANTS BENEFITSDebtor (Beneficiary) Access to credit with simple processing and business
support serviceslFinancial Operator BNCR Liquid guarantees
Credit Divisibility Penetration in areas where the bank has no presence Reduces costs associated with risk assets (estimates and
capital)
Correspondent Agent Progress in your Community Access to SBD Resources (financial and non-financial) You can charge commission to your customers
FINADE Increases Leverage of the Guarantee Fund Higher profits Reduces operating costs
BSD | Placements
350.422
261.14525%
78% Micro enterprise
35.711 operations
30% Zones with “Very low” and “low” social developmentindex.Millions in Costa Rican colones
TOTAL CREDIT BSD
I Semester of 2017
Total Placement Total
BSD | CreditI Semester of 2017
Average Credit: US $17025.93
QUANTITY OF OPERATIONS
24.974
43%more
35.711
JUNE 2016 JULY 2017
TOTAL PORTFOLIO IN MILLIONS (CR COLONES)
160.000
261.144
63%more
June 2016 July 2017
BSD | CreditI Semestre del 2017
Credit Portfolio by RegionCR Colon
172.697
177.725
Central Rural
HUETAR ATLANTIC
3%
HUETAR NORTH
20%
CHOROTEGA12%
BRUNCA
12%
CENTRAL
49%
CENTRAL PACIFIC
4%
COLOCACIÓN POR REGIÓN
51% Resources in Rural Areas
More resources to zones with low banking
SBD | CreditI Semester of 2017
53% in Agricultural Sector
PLACEMENT BY ACTIVITY
Transport5%
Tourism1%
Agriculture53%
Trade16%
Industry5%
Services20%
2%
20%
78%
MediumSmallMicro
SBD | Accessible Fund
• Competition of rates in the market.• The profitability of producers has been
favored.• Access of more beneficiaries to the law
SBD | Fondo Accesible
Fomento de la innovación
y tecnologías limpias
EducationCampaign.
Program tostrengthen theknowledge of
operators.
Technicalassistance and
training.
SBD | Accessible Fund
CleanTech
Promotion of Innovation /Clean
Tech
• Promotion of triple propelleralliances.
• Strengthening of value chains.Cluster Development
Projects under development towards Financial Inclusion
• CIC SBD –SUGEF: Credit information of the SBD beneficiary. Joint project with the Superintendency of Financial Institutions..
• PSBD Client Protection Protocol: joint project with the Central Bank of Costa Rica (BCCR).
• Self-regulation and Market Discipline for Microfinance Institutions: Jointly with REDCOM (Microfinance Network)