Reforming Collateral Laws to Expand Access to Finance
Most readers, especially those with car loans or home mortgages, know about collateral--property that the lender can take away from the borrower in the event that the borrower defaults. In low/middle income countries, it is understood that conserva...
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| Format: | Publication |
| Language: | English en_US |
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Washington, DC: World Bank
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2006/06/7021891/reforming-collateral-laws-expand-access-finance http://hdl.handle.net/10986/7100 |
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okr-10986-71002021-04-23T14:02:27Z Reforming Collateral Laws to Expand Access to Finance Fleisig, Heywood Safavian, Mehnaz de la Peña, Nuria ASSETS ASYMMETRIC INFORMATION BALANCE SHEETS BANK SUPERVISION BANKING SECTOR BANKING SYSTEMS BANKRUPTCY BANKRUPTCY PROCEDURES BANKS BONDS BORROWING CAPITAL MARKETS CAR LOANS CENTRAL BANK COLLATERAL COMMODITIES CONTRACT ENFORCEMENT CREDIT MARKETS CREDIT RATIONING CREDIT RISK DEBT DEPOSITS DEVALUATION DISCLOSURE DONOR AGENCIES ECONOMIC GROWTH EQUITY MARKETS EXCHANGE RATES EXPORTS FEDERAL RESERVE SYSTEM FINANCIAL CRISES FINANCIAL INNOVATION FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL LEASING FINANCIAL MARKETS FINANCIAL SECTOR FOREIGN CURRENCY FOREIGN INVESTMENT GDP HOUSING INCOME INCOME STATEMENTS INFLATION INSURANCE INTEREST RATE INTEREST RATES INTERNATIONAL FINANCE INTERNATIONAL MONETARY FUND INVENTORIES INVENTORY LAWS LEGAL FRAMEWORK LOCAL GOVERNMENT MACROECONOMIC REFORM MACROECONOMIC STABILITY MACROECONOMIC STABILIZATION MATURITIES MICROFINANCE MIDDLE INCOME COUNTRIES MINORITY SHAREHOLDERS MORTGAGES MOVABLE PROPERTY NOMINAL INTEREST RATES NONBANK FINANCIAL INSTITUTIONS PORTFOLIO PORTFOLIOS PRODUCTIVE ASSETS PRODUCTIVITY PROPERTY RIGHTS REAL INTEREST RATES RISK PREMIUM RISK PREMIUMS RISKY BUSINESS SECURITIZATION STRUCTURAL ADJUSTMENT SUBSIDIARY TAX COLLECTOR TAX LIABILITIES TRANSACTION COSTS TRANSITION ECONOMIES TRANSPORT UNDERWRITERS URBAN DEVELOPMENT Most readers, especially those with car loans or home mortgages, know about collateral--property that the lender can take away from the borrower in the event that the borrower defaults. In low/middle income countries, it is understood that conservative lenders exclude firms from credit markets with their excessive collateral requirements. Usually, this is because only some property is acceptable as collateral: large holdings of urban real estate and, sometimes, new motor vehicles. Microenterprises, SMEs, and the poor have little of this property but they do have an array of productive assets that could easily be harnessed to serve as collateral. It is only the legal framework which prevents firms from using these assets to secure loans. In countries with reformed laws governing collateral, property such as equipment, inventory, accounts receivable, livestock are considered excellent collateral. This book aims to better equip project managers to implement reforms to the legal and institutional framework for collateral (secured transactions). It discusses the importance of movable property as a source of collateral for firms, the relationship between the legal framework governing movable assets and the financial sector consequences for firms (better loan terms, increased access, more competitive financial sector), and how reforms can be put in place to change the lending environment. 2012-06-05T14:55:21Z 2012-06-05T14:55:21Z 2006 http://documents.worldbank.org/curated/en/2006/06/7021891/reforming-collateral-laws-expand-access-finance 978-0-8213-6490-1 http://hdl.handle.net/10986/7100 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Publications & Research :: Publication Publications & Research :: Publication |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ASSETS ASYMMETRIC INFORMATION BALANCE SHEETS BANK SUPERVISION BANKING SECTOR BANKING SYSTEMS BANKRUPTCY BANKRUPTCY PROCEDURES BANKS BONDS BORROWING CAPITAL MARKETS CAR LOANS CENTRAL BANK COLLATERAL COMMODITIES CONTRACT ENFORCEMENT CREDIT MARKETS CREDIT RATIONING CREDIT RISK DEBT DEPOSITS DEVALUATION DISCLOSURE DONOR AGENCIES ECONOMIC GROWTH EQUITY MARKETS EXCHANGE RATES EXPORTS FEDERAL RESERVE SYSTEM FINANCIAL CRISES FINANCIAL INNOVATION FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL LEASING FINANCIAL MARKETS FINANCIAL SECTOR FOREIGN CURRENCY FOREIGN INVESTMENT GDP HOUSING INCOME INCOME STATEMENTS INFLATION INSURANCE INTEREST RATE INTEREST RATES INTERNATIONAL FINANCE INTERNATIONAL MONETARY FUND INVENTORIES INVENTORY LAWS LEGAL FRAMEWORK LOCAL GOVERNMENT MACROECONOMIC REFORM MACROECONOMIC STABILITY MACROECONOMIC STABILIZATION MATURITIES MICROFINANCE MIDDLE INCOME COUNTRIES MINORITY SHAREHOLDERS MORTGAGES MOVABLE PROPERTY NOMINAL INTEREST RATES NONBANK FINANCIAL INSTITUTIONS PORTFOLIO PORTFOLIOS PRODUCTIVE ASSETS PRODUCTIVITY PROPERTY RIGHTS REAL INTEREST RATES RISK PREMIUM RISK PREMIUMS RISKY BUSINESS SECURITIZATION STRUCTURAL ADJUSTMENT SUBSIDIARY TAX COLLECTOR TAX LIABILITIES TRANSACTION COSTS TRANSITION ECONOMIES TRANSPORT UNDERWRITERS URBAN DEVELOPMENT |
| spellingShingle |
ASSETS ASYMMETRIC INFORMATION BALANCE SHEETS BANK SUPERVISION BANKING SECTOR BANKING SYSTEMS BANKRUPTCY BANKRUPTCY PROCEDURES BANKS BONDS BORROWING CAPITAL MARKETS CAR LOANS CENTRAL BANK COLLATERAL COMMODITIES CONTRACT ENFORCEMENT CREDIT MARKETS CREDIT RATIONING CREDIT RISK DEBT DEPOSITS DEVALUATION DISCLOSURE DONOR AGENCIES ECONOMIC GROWTH EQUITY MARKETS EXCHANGE RATES EXPORTS FEDERAL RESERVE SYSTEM FINANCIAL CRISES FINANCIAL INNOVATION FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL LEASING FINANCIAL MARKETS FINANCIAL SECTOR FOREIGN CURRENCY FOREIGN INVESTMENT GDP HOUSING INCOME INCOME STATEMENTS INFLATION INSURANCE INTEREST RATE INTEREST RATES INTERNATIONAL FINANCE INTERNATIONAL MONETARY FUND INVENTORIES INVENTORY LAWS LEGAL FRAMEWORK LOCAL GOVERNMENT MACROECONOMIC REFORM MACROECONOMIC STABILITY MACROECONOMIC STABILIZATION MATURITIES MICROFINANCE MIDDLE INCOME COUNTRIES MINORITY SHAREHOLDERS MORTGAGES MOVABLE PROPERTY NOMINAL INTEREST RATES NONBANK FINANCIAL INSTITUTIONS PORTFOLIO PORTFOLIOS PRODUCTIVE ASSETS PRODUCTIVITY PROPERTY RIGHTS REAL INTEREST RATES RISK PREMIUM RISK PREMIUMS RISKY BUSINESS SECURITIZATION STRUCTURAL ADJUSTMENT SUBSIDIARY TAX COLLECTOR TAX LIABILITIES TRANSACTION COSTS TRANSITION ECONOMIES TRANSPORT UNDERWRITERS URBAN DEVELOPMENT Fleisig, Heywood Safavian, Mehnaz de la Peña, Nuria Reforming Collateral Laws to Expand Access to Finance |
| description |
Most readers, especially those with car
loans or home mortgages, know about collateral--property
that the lender can take away from the borrower in the event
that the borrower defaults. In low/middle income countries,
it is understood that conservative lenders exclude firms
from credit markets with their excessive collateral
requirements. Usually, this is because only some property is
acceptable as collateral: large holdings of urban real
estate and, sometimes, new motor vehicles. Microenterprises,
SMEs, and the poor have little of this property but they do
have an array of productive assets that could easily be
harnessed to serve as collateral. It is only the legal
framework which prevents firms from using these assets to
secure loans. In countries with reformed laws governing
collateral, property such as equipment, inventory, accounts
receivable, livestock are considered excellent collateral.
This book aims to better equip project managers to implement
reforms to the legal and institutional framework for
collateral (secured transactions). It discusses the
importance of movable property as a source of collateral for
firms, the relationship between the legal framework
governing movable assets and the financial sector
consequences for firms (better loan terms, increased access,
more competitive financial sector), and how reforms can be
put in place to change the lending environment. |
| format |
Publications & Research :: Publication |
| author |
Fleisig, Heywood Safavian, Mehnaz de la Peña, Nuria |
| author_facet |
Fleisig, Heywood Safavian, Mehnaz de la Peña, Nuria |
| author_sort |
Fleisig, Heywood |
| title |
Reforming Collateral Laws to Expand Access to Finance |
| title_short |
Reforming Collateral Laws to Expand Access to Finance |
| title_full |
Reforming Collateral Laws to Expand Access to Finance |
| title_fullStr |
Reforming Collateral Laws to Expand Access to Finance |
| title_full_unstemmed |
Reforming Collateral Laws to Expand Access to Finance |
| title_sort |
reforming collateral laws to expand access to finance |
| publisher |
Washington, DC: World Bank |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2006/06/7021891/reforming-collateral-laws-expand-access-finance http://hdl.handle.net/10986/7100 |
| _version_ |
1764399083947032576 |