Innovative Experiences in Access to Finance : Market Friendly Roles for the Visible Hand?

Interest in access to finance has increased significantly in recent years, as growing evidence suggests that lack of access to credit prevents lower-income households and small firms from financing high return investment projects, having an adverse effect on growth and poverty alleviation. This study describes some recent innovative experiences to broaden access to credit. These experiences are consistent with an emerging new view that recognizes a limited role for the public sector in financial markets, but contends that there might be room for well-designed, restricted interventions in collaboration with the private sector to foster financial development and broaden access. The authors illustrate this view with several recent experiences in Latin America and then discuss some open policy questions about the role of the public and private sectors in driving these financial innovations.

Bibliographic Details

Main Authors:	Gozzi, Juan Carlos, de la Torre, Augusto, Schmukler, Sergio L.
Language:	English
Published:	World Bank, Washington, DC 2007-08
Subjects:	ACCOUNTING, ACCOUNTING STANDARDS, ACTIVE MARKET, AGENCY PROBLEMS, AGRICULTURAL COOPERATIVES, AGRICULTURAL CREDIT, ALLOCATION OF CREDIT, ASYMMETRIC INFORMATION, BANK BRANCHES, BANK DEPOSITS, BANK LENDING, BANKING SECTOR, BANKING SECTOR ASSETS, BANKING SYSTEM, BANKRUPTCY, BANKRUPTCY LAWS, BENEFICIARIES, CAPITAL MARKETS, CENTRAL BANK, CHECKING ACCOUNT, COLLATERAL, COLLATERAL LAWS, COMMERCIAL BANKS, COMPETITIVE FINANCIAL MARKETS, COMPETITIVE MARKETS, CONSUMER CREDIT, CONTRACT ENFORCEMENT, CREDIT ASSESSMENT, CREDIT GUARANTEE, CREDIT HISTORY, CREDIT INFORMATION, CREDIT INFORMATION SYSTEMS, CREDIT MARKETS, CREDIT OUTSTANDING, CREDIT PROGRAMS, CREDIT REPORTING, CREDIT RISK, CREDIT SCORING, CREDITOR, CREDITOR RIGHTS, CREDITORS, CREDITWORTHY BORROWERS, CUSTODY, CUSTODY ARRANGEMENTS, DEBT, DEBT CRISIS, DEBTOR, DEBTS, DEPOSIT, DEPOSIT INSURANCE, DEPOSITORS, DEPOSITS, DEREGULATION OF INTEREST, DEVELOPING COUNTRIES, DEVELOPMENT BANK, DEVELOPMENT OF CREDIT BUREAUS, DIRECTED CREDIT, DISCLOSURE OF INFORMATION, DOMESTIC FINANCIAL MARKETS, DOMESTIC SECURITIES, ECONOMIC DEVELOPMENT, ECONOMIC EFFICIENCY, EFFICIENT MARKET, ELECTRONIC MARKET, EMERGING ECONOMIES, EMERGING MARKETS, ENABLING ENVIRONMENT, ENFORCEABILITY, EXCHANGE COMMISSIONS, EXPENDITURES, EXTERNAL FINANCE, EXTERNAL INVESTORS, FINANCIAL ASSETS, FINANCIAL CRISES, FINANCIAL DEVELOPMENT, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL INSTRUMENTS, FINANCIAL LIBERALIZATION, FINANCIAL LIBERALIZATIONS, FINANCIAL MARKET, FINANCIAL MARKETS, FINANCIAL STABILITY, FINANCIAL SUPPORT, FINANCIAL SYSTEM, FINANCIAL SYSTEMS, FISCAL DEFICITS, FIXED ASSETS, FLOW OF CREDIT, FOREIGN EXCHANGE, FOREIGN INVESTMENT, GOVERNMENT BANK, GOVERNMENT BONDS, GOVERNMENT BORROWING, GOVERNMENT DEBT, GOVERNMENT INTERVENTION, GOVERNMENT INTERVENTIONS, GOVERNMENT INVOLVEMENT, GOVERNMENT OWNERSHIP, GOVERNMENT POLICIES, GOVERNMENT REGULATION, GOVERNMENT SUPPORT, GROUPS OF BORROWERS, HOUSING FINANCE, INCENTIVES FOR REPAYMENT, INCOME INEQUALITY, INCOME LEVEL, INCOME LEVELS, INCOME TAX, INFORMATION TECHNOLOGY, INSTITUTIONAL DEVELOPMENT, INSTRUMENT, INSURANCE, INSURANCE PRODUCTS, INTEREST RATE, INTERMEDIATION SPREADS, INTERNAL RATE OF RETURN, INTERNATIONAL BANK, INTERNATIONAL DEVELOPMENT, INVESTMENT PROJECTS, INVESTOR PROTECTION, INVESTOR PROTECTION LAWS, LEGAL SYSTEMS, LEGAL TRADITIONS, LENDER, LENDERS, LENDING REQUIREMENTS, LEVEL OF INTEREST RATES, LOAN, LOAN GUARANTEES, LOAN PORTFOLIOS, LONG-TERM FINANCE, MACROECONOMIC ENVIRONMENT, MACROECONOMIC STABILIZATION, MACROECONOMIC VOLATILITY, MARKET DEPTH, MARKET DEVELOPMENT, MARKET FAILURE, MARKET FAILURES, MARKET INFRASTRUCTURE, MARKET INFRASTRUCTURES, MARKET INTEREST RATES, MARKET PARTICIPANTS, MARKET STRUCTURE, MICROFINANCE, MINORITY SHAREHOLDERS, MONETARY AUTHORITIES, MONETARY POLICIES, MONEY SUPPLY, MORAL HAZARD, MUTUAL FUNDS, NON-PERFORMING LOAN, OPPORTUNITY COST, PAYMENT HISTORY, PAYMENT SERVICES, PENSIONS, POLITICAL ECONOMY, POST OFFICE, PRINCIPAL-AGENT PROBLEMS, PRIVATE BANKS, PRIVATE CREDIT, PRIVATE CREDIT BUREAUS, PRIVATE CREDITORS, PRIVATE FINANCIAL INSTITUTIONS, PRIVATE FINANCIAL INTERMEDIARIES, PRIVATE INVESTORS, PRIVATE PARTIES, PROPERTY RIGHTS, PROVISION OF CREDIT, PRUDENTIAL REGULATION, PUBLIC BANK, PUBLIC BANKS, REAL INTEREST, REAL INTEREST RATES, RELIANCE ON COLLATERAL, REPOSSESSION, RESERVE, RESERVE REQUIREMENTS, RETURN, RETURNS, RIGHTS OF CREDITORS, RISK MANAGEMENT, RISK MANAGEMENT SYSTEMS, RISK OF LOAN, RISK PREMIUMS, RISK SHARING, RURAL CREDIT, SAVINGS ACCOUNT, SECURITIES, SECURITIES MARKET, SECURITIES MARKET DEVELOPMENT, SETTLEMENT, SETTLEMENT SYSTEMS, SHAREHOLDER, SHAREHOLDERS, SMALL BORROWERS, TAX SYSTEM, TAX SYSTEMS, TRADING, TRANSACTION, TRANSACTION COST, TRANSACTION COSTS, TRANSACTIONS COSTS, TRANSITION ECONOMIES, TRANSPARENCY,
Online Access:	http://documents.worldbank.org/curated/en/2007/08/8115877/innovative-experiences-access-finance-market-friendly-roles-visible-hand https://hdl.handle.net/10986/7303
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