Expanding Access to Finance : Good Practices and Policies for Micro, Small, and Medium Enterprises

This book on micro, small, and medium enterprise (MSME) finance is intended primarily for government policy makers. It presents a policy framework whereby governments can support increased access by MSME to financial services based on empirical evidence and practices. MSME complain that lack of access to finance constrains their growth and competitiveness. Indeed, financial sector policies often work against the ability of commercial financial institutions to serve MSME, albeit often unintentionally. In many countries, lack of competition in the banking sector limits pressure on banks to reach out to MSME client segments. High risk and high transaction costs-real or perceived-associated with bank lending to MSME likewise constrain access. Often, supervisory and capital adequacy requirements penalize banks for lending to enterprises that lack traditional collateral. Attempts by governments to address these constraints and offset the inequalities in financial sector policy generally have not achieved the desired results. This book lays out a market-based policy framework for governments that focuses on delivery of financial services to MSME on commercial terms. The framework guides governments in focusing scarce resources on developing an inclusive financial sector policy; building sound financial institutions; and investing in a supportive information infrastructure, such as credit bureaus and accounting standards. Examples from around the world illustrate how such a strategy has helped build more inclusive financial systems for all.

Bibliographic Details

Main Authors:	Malhotra, Mohini, Chen, Yanni, Criscuolo, Alberto, Fan, Qimiao, Hamel, Iva lIieva, Savchenko, Yevgeniya
Format:	Publication biblioteca
Language:	English en_US
Published:	Washington, DC : World Bank 2007
Subjects:	ACCESS TO CREDIT, ACCESS TO FINANCE, ACCESS TO FINANCIAL SERVICES, ACCESSIBLE LOANS, ACCOUNTS RECEIVABLE, ADMINISTRATIVE COSTS, AFFORDABLE FINANCING, AGRICULTURAL BANK, AGRICULTURAL COOPERATIVE, AGRICULTURAL DEVELOPMENT BANK, ARREARS, AVAILABILITY OF CREDIT, BALANCE SHEET, BANK ACCOUNT, BANK ASSETS, BANK CREDIT, BANK CREDITS, BANK LENDING, BANK LOANS, BANKING SYSTEM, BANKS, BIASES, BORROWER, BORROWING, BUSINESS CENTER, BUSINESS DEVELOPMENT, BUSINESS DEVELOPMENT ASSISTANCE, BUSINESS DEVELOPMENT SERVICES, BUSINESS FAILURES, CAPITAL ADEQUACY, CAPITAL INJECTIONS, CASH FLOW, CASH FLOW ANALYSIS, COLLATERAL, COLLATERAL REQUIREMENTS, COMMERCIAL BANK, COMMERCIAL BANKING, COMMERCIAL BANKS, COMMERCIAL LENDING, COMMUNITY BANK, COOPERATIVE BANK, CORPORATE FINANCE, CORRUPTION, COST OF LOAN, COST OF LOAN PROCESSING, CREDIT ANALYSIS, CREDIT BUREAUS, CREDIT GUARANTEE, CREDIT GUARANTEES, CREDIT HISTORIES, CREDIT HISTORY, CREDIT HISTORY INFORMATION, CREDIT INFORMATION, CREDIT MARKET, CREDIT MARKETS, CREDIT PROGRAM, CREDIT PROGRAMS, CREDIT RATINGS, CREDIT RATIONING, CREDIT REGISTRIES, CREDIT RISK, CREDIT SCORES, CREDIT SCORING, CREDIT SCORING MODEL, CREDITOR, CREDITORS, CREDITWORTHINESS, DEBT, DEPOSIT, DEPOSIT ACCOUNTS, DEPOSITS, DEVELOPMENT BANK, DEVELOPMENT FINANCE, DEVELOPMENT FINANCE INSTITUTIONS, DOCUMENTATION REQUIREMENTS, EARNINGS, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ENFORCEABLE PROPERTY RIGHTS, ENTERPRISE ASSISTANCE, ENTERPRISE DEVELOPMENT, ENTREPRENEURS, EQUALITY, EQUITY FINANCING, EQUITY FUND, EQUITY FUNDS, EXCHANGE RATE, EXTERNAL FINANCING, FINANCE COMPANIES, FINANCES, FINANCIAL ASSETS, FINANCIAL INNOVATIONS, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL INSTRUMENT, FINANCIAL INSTRUMENTS, FINANCIAL INTERMEDIARIES, FINANCIAL MARKET, FINANCIAL POLICIES, FINANCIAL PRODUCTS, FINANCIAL SECTOR DEVELOPMENT, FINANCIAL SECTOR POLICIES, FINANCIAL SECTOR POLICY, FINANCIAL SECTOR REFORM, FINANCIAL SECTOR REFORMS, FINANCIAL SERVICES, FINANCIAL SUPPORT, FINANCIAL SUSTAINABILITY, FINANCIAL SYSTEM, FINANCIAL SYSTEMS, FINANCIAL TRACK RECORD, FINANCIAL TRACK RECORDS, FINANCING NEEDS, FIXED ASSETS, FIXED COSTS, FORMAL FINANCE, FORMAL FINANCIAL INSTITUTIONS, FORMAL FINANCIAL MARKETS, GOVERNMENT INTERVENTIONS, GOVERNMENT POLICIES, GOVERNMENT POLICY, GOVERNMENT SECURITIES, GUARANTEE SCHEME, GUARANTEE SCHEMES, GUARANTORS, HIGH INTEREST RATES, HOUSEHOLDS, INEQUALITIES, INFORMAL CREDIT, INFORMATION ASYMMETRIES, INFORMATION INFRASTRUCTURE, INFORMATION SYSTEMS, INFORMATION TECHNOLOGY, INITIAL PUBLIC OFFERING, INSTALLMENT, INTEREST PAYMENT, INTEREST RATE, INTEREST RATE CEILINGS, INTEREST RATE CONTROLS, INTEREST RATES, INTERNAL FUNDS, INTERNATIONAL BANK, INTERNATIONAL FINANCE, INVESTMENT CAPITAL, JOB CREATION, LACK OF ACCESS, LACK OF KNOWLEDGE, LACK OF PROPERTY, LENDER, LENDERS, LIMITED ACCESS, LIMITED ACCESS TO FINANCE, LOAN, LOAN AMOUNTS, LOAN ANALYSIS, LOAN APPLICATIONS, LOAN APPROVAL, LOAN DOCUMENTATION, LOAN OFFICER, LOAN OFFICERS, LOAN PERFORMANCE, LOAN PORTFOLIO, LOAN PRODUCT, LOAN REPAYMENT, LOAN REPAYMENTS, LOAN SIZE, MARKET ECONOMY, MICROFINANCE, MICROFINANCE INSTITUTIONS, MICROFINANCE LOANS, MONEYLENDERS, MORAL HAZARD, MULTINATIONAL, OUTREACH, OUTSTANDING BALANCES, OUTSTANDING LOAN, OUTSTANDING LOANS, PHYSICAL ASSETS, POLICY ENVIRONMENT, PRIVATE CREDIT, PRIVATE EQUITY, PROPERTY RIGHTS, PROPRIETORSHIPS, REAL ESTATE, REPAYMENT, REPAYMENT HISTORIES, REPAYMENT SCHEDULES, REPOSSESSION, RETURN ON INVESTMENTS, RISK MANAGEMENT, RISK MITIGATION, RURAL BANKING, SAVINGS, SAVINGS ACCOUNTS, SMALL BUSINESS, SMALL BUSINESS LENDING, SMALL BUSINESS LOANS, SMALL ENTERPRISE, SMALL LOAN, SMALL LOANS, START-UPS, SUPPLY OF CREDIT, TAX RETURNS, TECHNICAL ASSISTANCE, TERMS OF LOAN, TRANSACTION COSTS, UNION, VENTURE CAPITAL, VILLAGE, WORKING CAPITAL,
Online Access:	http://documents.worldbank.org/curated/en/2007/05/13881825/expanding-access-finance-good-practices-policies-micro-small-medium-enterprises http://hdl.handle.net/10986/6621
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