Principles for Public Credit Guarantee Schemes for SMEs

Access to finance, particularly credit, is widely recognized as problematic for small and medium enterprises (SMEs), hampering their growth and development. To address this challenge, many governments around the world intervene in SME credit market...

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Bibliographic Details
Main Author: World Bank Group
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2015
Subjects:
FEE
CC
Online Access:http://documents.worldbank.org/curated/en/2015/12/25665897/task-force-design-implementation-evaluation-public-credit-guarantee-schemes-small-medium-enterprises-principles-public-credit-guarantee-schemes-smes
http://hdl.handle.net/10986/23329
id okr-10986-23329
recordtype oai_dc
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 BUSINESS ACTIVITIES
LINE OF CREDIT
CREDIT MARKETS
DEPOSIT
FINANCIAL SERVICES
BORROWER
ECONOMIC GROWTH
ENTERPRISE DEVELOPMENT
PEOPLE
PROPERTY LAWS
FINANCING
MARKET DEVELOPMENTS
BALANCE-SHEET
INFORMATION TECHNOLOGY
INTEREST
RISK-BASED PRICING
GUARANTEES
CREDIT CRUNCH
FINANCIAL RESOURCES
ETHNIC GROUPS
SMALL BUSINESS FINANCE
BANKING SYSTEMS
CAPITAL STRUCTURE
LIQUIDITY RISK
WELFARE
CAPITAL ADEQUACY
ENDOWMENTS
ENTREPRENEURSHIP FINANCING
FINANCIAL DIFFICULTY
LOAN
CREDIT ALLOCATION
LOAN AMOUNT
FEE
BORROWERS
SUBSIDY
PRIVATE PROPERTY
PAYMENTS
BANKRUPTCY
DEVELOPMENT FINANCE INSTITUTIONS
INFORMATION SYSTEMS
INTERNATIONAL BANK
CREDITOR
COST OF CREDIT
DEVELOPMENT FINANCE INSTITUTION
INFORMATION ASYMMETRIES
PROVISION OF CREDIT
LENDER
AGRICULTURE ORGANIZATION
CAPITAL FINANCE
FUNDING SOURCES
PUBLIC CREDIT
ACCESS TO FINANCIAL SERVICES
SMALL BUSINESS
INTERNATIONAL FINANCE
FINANCIAL SECTOR REFORM
PUBLIC POLICY
FINANCIAL SUSTAINABILITY
TECHNICAL ASSISTANCE
MORAL HAZARD
PARTIAL CREDIT
UNION
BANKERS’ ASSOCIATIONS
CONFIDENCE OF LENDERS
MAILING ADDRESS
PAYMENT
FINANCIAL INSTITUTIONS
DEBT
FISCAL RESOURCES
CAPITAL REQUIREMENTS
ELIGIBILITY CRITERIA
DEPOSIT INSURANCE
LENDERS
BANKERS
LOANS
ENTERPRISES
FINANCIAL SYSTEM
BANK FINANCING
FINANCE
TERM CREDIT
EQUITABLE TREATMENT
BANKS
SMALL LOANS
INSTITUTIONAL REFORMS
COLLATERAL REQUIREMENTS
EQUITY
CREDIT GAP
LOAN GUARANTEE
CREDIT REGISTRIES
BUSINESS FINANCE
CAPITAL
OPERATING COSTS
SMALL ENTERPRISES
FINANCIAL OBLIGATIONS
CREDIT ACCESS
ACCESS TO FINANCE
BUSINESS DEVELOPMENT
SUPPLY OF CREDIT
DEVELOPMENT BANKS
BANK
CREDIT
LEGAL AUTHORITY
INVESTMENT BANK
LOAN GUARANTEES
WORKING CAPITAL
REPAYMENT
ENTERPRISE
PROPERTY
JOB CREATION
INSTITUTIONAL CAPACITY
BALANCE SHEET
TRANSACTION COSTS
CREDIT GUARANTEE
GUARANTEE SCHEMES
CREDIT FLOWS
CC
PROFITABILITY
INSTITUTIONAL REFORM
CREDIT RISK
ACCESS TO CREDIT
ECONOMIC DEVELOPMENT
INTERESTS
FINANCIAL SECTOR ASSESSMENT
FINANCIAL ” POLICY
ECONOMIES OF SCALE
FINANCIAL DEVELOPMENT
LOAN APPLICATIONS
INVESTMENT
CREDIT GUARANTEES
EXTREME POVERTY
FINANCIAL INTERMEDIARIES
BUSINESS VOLUMES
COLLATERAL
LOAN SIZE
FINANCIAL REGULATOR
DEVELOPMENT FINANCE
LEGAL REQUIREMENTS
INVESTMENTS
BORROWING
FINANCIAL SUPPORT
RISK MANAGEMENT
BANKING SUPERVISION
FEES
WOMEN
OUTREACH
FISCAL SUPPORT
SMALL BUSINESSES
GUARANTEE
CONSUMER PROTECTION
CASH FLOW
DEVELOPMENT BANK
FINANCIAL SECTOR DEVELOPMENT
SMALL BUSINESS ADMINISTRATION
RISK MITIGATION
START-UPS
GOVERNMENT INTERVENTION
EMPLOYEES
spellingShingle BUSINESS ACTIVITIES
LINE OF CREDIT
CREDIT MARKETS
DEPOSIT
FINANCIAL SERVICES
BORROWER
ECONOMIC GROWTH
ENTERPRISE DEVELOPMENT
PEOPLE
PROPERTY LAWS
FINANCING
MARKET DEVELOPMENTS
BALANCE-SHEET
INFORMATION TECHNOLOGY
INTEREST
RISK-BASED PRICING
GUARANTEES
CREDIT CRUNCH
FINANCIAL RESOURCES
ETHNIC GROUPS
SMALL BUSINESS FINANCE
BANKING SYSTEMS
CAPITAL STRUCTURE
LIQUIDITY RISK
WELFARE
CAPITAL ADEQUACY
ENDOWMENTS
ENTREPRENEURSHIP FINANCING
FINANCIAL DIFFICULTY
LOAN
CREDIT ALLOCATION
LOAN AMOUNT
FEE
BORROWERS
SUBSIDY
PRIVATE PROPERTY
PAYMENTS
BANKRUPTCY
DEVELOPMENT FINANCE INSTITUTIONS
INFORMATION SYSTEMS
INTERNATIONAL BANK
CREDITOR
COST OF CREDIT
DEVELOPMENT FINANCE INSTITUTION
INFORMATION ASYMMETRIES
PROVISION OF CREDIT
LENDER
AGRICULTURE ORGANIZATION
CAPITAL FINANCE
FUNDING SOURCES
PUBLIC CREDIT
ACCESS TO FINANCIAL SERVICES
SMALL BUSINESS
INTERNATIONAL FINANCE
FINANCIAL SECTOR REFORM
PUBLIC POLICY
FINANCIAL SUSTAINABILITY
TECHNICAL ASSISTANCE
MORAL HAZARD
PARTIAL CREDIT
UNION
BANKERS’ ASSOCIATIONS
CONFIDENCE OF LENDERS
MAILING ADDRESS
PAYMENT
FINANCIAL INSTITUTIONS
DEBT
FISCAL RESOURCES
CAPITAL REQUIREMENTS
ELIGIBILITY CRITERIA
DEPOSIT INSURANCE
LENDERS
BANKERS
LOANS
ENTERPRISES
FINANCIAL SYSTEM
BANK FINANCING
FINANCE
TERM CREDIT
EQUITABLE TREATMENT
BANKS
SMALL LOANS
INSTITUTIONAL REFORMS
COLLATERAL REQUIREMENTS
EQUITY
CREDIT GAP
LOAN GUARANTEE
CREDIT REGISTRIES
BUSINESS FINANCE
CAPITAL
OPERATING COSTS
SMALL ENTERPRISES
FINANCIAL OBLIGATIONS
CREDIT ACCESS
ACCESS TO FINANCE
BUSINESS DEVELOPMENT
SUPPLY OF CREDIT
DEVELOPMENT BANKS
BANK
CREDIT
LEGAL AUTHORITY
INVESTMENT BANK
LOAN GUARANTEES
WORKING CAPITAL
REPAYMENT
ENTERPRISE
PROPERTY
JOB CREATION
INSTITUTIONAL CAPACITY
BALANCE SHEET
TRANSACTION COSTS
CREDIT GUARANTEE
GUARANTEE SCHEMES
CREDIT FLOWS
CC
PROFITABILITY
INSTITUTIONAL REFORM
CREDIT RISK
ACCESS TO CREDIT
ECONOMIC DEVELOPMENT
INTERESTS
FINANCIAL SECTOR ASSESSMENT
FINANCIAL ” POLICY
ECONOMIES OF SCALE
FINANCIAL DEVELOPMENT
LOAN APPLICATIONS
INVESTMENT
CREDIT GUARANTEES
EXTREME POVERTY
FINANCIAL INTERMEDIARIES
BUSINESS VOLUMES
COLLATERAL
LOAN SIZE
FINANCIAL REGULATOR
DEVELOPMENT FINANCE
LEGAL REQUIREMENTS
INVESTMENTS
BORROWING
FINANCIAL SUPPORT
RISK MANAGEMENT
BANKING SUPERVISION
FEES
WOMEN
OUTREACH
FISCAL SUPPORT
SMALL BUSINESSES
GUARANTEE
CONSUMER PROTECTION
CASH FLOW
DEVELOPMENT BANK
FINANCIAL SECTOR DEVELOPMENT
SMALL BUSINESS ADMINISTRATION
RISK MITIGATION
START-UPS
GOVERNMENT INTERVENTION
EMPLOYEES
World Bank Group
Principles for Public Credit Guarantee Schemes for SMEs
description Access to finance, particularly credit, is widely recognized as problematic for small and medium enterprises (SMEs), hampering their growth and development. To address this challenge, many governments around the world intervene in SME credit markets through credit guarantee schemes (CGSs). A CGS offers risk mitigation to lenders by taking a share of the lenders’ losses on SME loans in case of default. CGSs can contribute to expand access to finance for SMEs. Yet they may bring limited value added and prove costly if they are not designed and implemented well. There have been efforts in recent years to identify good practices for CGSs, but the international community still lacks a common set of principles or standards that can help governments establish, operate, and evaluate CGSs for SMEs. The Principles for Public Credit Guarantees for SMEs are filling this gap. The Principles provide a generally accepted set of good practices, which can serve as a global reference for the design, execution, and evaluation of public CGSs around the world. The Principles propose appropriate governance and risk management arrangements, as well as operational conduct rules for CGSs, which can lead to improved outreach and additionality along with financial sustainability. Developed through extensive consultations with stakeholders, the Principles draw from both the literature on good practices for CGSs and sound practices implemented by a number of successful CGSs around the world.
format Working Paper
author World Bank Group
author_facet World Bank Group
author_sort World Bank Group
title Principles for Public Credit Guarantee Schemes for SMEs
title_short Principles for Public Credit Guarantee Schemes for SMEs
title_full Principles for Public Credit Guarantee Schemes for SMEs
title_fullStr Principles for Public Credit Guarantee Schemes for SMEs
title_full_unstemmed Principles for Public Credit Guarantee Schemes for SMEs
title_sort principles for public credit guarantee schemes for smes
publisher World Bank, Washington, DC
publishDate 2015
url http://documents.worldbank.org/curated/en/2015/12/25665897/task-force-design-implementation-evaluation-public-credit-guarantee-schemes-small-medium-enterprises-principles-public-credit-guarantee-schemes-smes
http://hdl.handle.net/10986/23329
_version_ 1764453750487908352
spelling okr-10986-233292021-06-14T10:17:58Z Principles for Public Credit Guarantee Schemes for SMEs World Bank Group BUSINESS ACTIVITIES LINE OF CREDIT CREDIT MARKETS DEPOSIT FINANCIAL SERVICES BORROWER ECONOMIC GROWTH ENTERPRISE DEVELOPMENT PEOPLE PROPERTY LAWS FINANCING MARKET DEVELOPMENTS BALANCE-SHEET INFORMATION TECHNOLOGY INTEREST RISK-BASED PRICING GUARANTEES CREDIT CRUNCH FINANCIAL RESOURCES ETHNIC GROUPS SMALL BUSINESS FINANCE BANKING SYSTEMS CAPITAL STRUCTURE LIQUIDITY RISK WELFARE CAPITAL ADEQUACY ENDOWMENTS ENTREPRENEURSHIP FINANCING FINANCIAL DIFFICULTY LOAN CREDIT ALLOCATION LOAN AMOUNT FEE BORROWERS SUBSIDY PRIVATE PROPERTY PAYMENTS BANKRUPTCY DEVELOPMENT FINANCE INSTITUTIONS INFORMATION SYSTEMS INTERNATIONAL BANK CREDITOR COST OF CREDIT DEVELOPMENT FINANCE INSTITUTION INFORMATION ASYMMETRIES PROVISION OF CREDIT LENDER AGRICULTURE ORGANIZATION CAPITAL FINANCE FUNDING SOURCES PUBLIC CREDIT ACCESS TO FINANCIAL SERVICES SMALL BUSINESS INTERNATIONAL FINANCE FINANCIAL SECTOR REFORM PUBLIC POLICY FINANCIAL SUSTAINABILITY TECHNICAL ASSISTANCE MORAL HAZARD PARTIAL CREDIT UNION BANKERS’ ASSOCIATIONS CONFIDENCE OF LENDERS MAILING ADDRESS PAYMENT FINANCIAL INSTITUTIONS DEBT FISCAL RESOURCES CAPITAL REQUIREMENTS ELIGIBILITY CRITERIA DEPOSIT INSURANCE LENDERS BANKERS LOANS ENTERPRISES FINANCIAL SYSTEM BANK FINANCING FINANCE TERM CREDIT EQUITABLE TREATMENT BANKS SMALL LOANS INSTITUTIONAL REFORMS COLLATERAL REQUIREMENTS EQUITY CREDIT GAP LOAN GUARANTEE CREDIT REGISTRIES BUSINESS FINANCE CAPITAL OPERATING COSTS SMALL ENTERPRISES FINANCIAL OBLIGATIONS CREDIT ACCESS ACCESS TO FINANCE BUSINESS DEVELOPMENT SUPPLY OF CREDIT DEVELOPMENT BANKS BANK CREDIT LEGAL AUTHORITY INVESTMENT BANK LOAN GUARANTEES WORKING CAPITAL REPAYMENT ENTERPRISE PROPERTY JOB CREATION INSTITUTIONAL CAPACITY BALANCE SHEET TRANSACTION COSTS CREDIT GUARANTEE GUARANTEE SCHEMES CREDIT FLOWS CC PROFITABILITY INSTITUTIONAL REFORM CREDIT RISK ACCESS TO CREDIT ECONOMIC DEVELOPMENT INTERESTS FINANCIAL SECTOR ASSESSMENT FINANCIAL ” POLICY ECONOMIES OF SCALE FINANCIAL DEVELOPMENT LOAN APPLICATIONS INVESTMENT CREDIT GUARANTEES EXTREME POVERTY FINANCIAL INTERMEDIARIES BUSINESS VOLUMES COLLATERAL LOAN SIZE FINANCIAL REGULATOR DEVELOPMENT FINANCE LEGAL REQUIREMENTS INVESTMENTS BORROWING FINANCIAL SUPPORT RISK MANAGEMENT BANKING SUPERVISION FEES WOMEN OUTREACH FISCAL SUPPORT SMALL BUSINESSES GUARANTEE CONSUMER PROTECTION CASH FLOW DEVELOPMENT BANK FINANCIAL SECTOR DEVELOPMENT SMALL BUSINESS ADMINISTRATION RISK MITIGATION START-UPS GOVERNMENT INTERVENTION EMPLOYEES Access to finance, particularly credit, is widely recognized as problematic for small and medium enterprises (SMEs), hampering their growth and development. To address this challenge, many governments around the world intervene in SME credit markets through credit guarantee schemes (CGSs). A CGS offers risk mitigation to lenders by taking a share of the lenders’ losses on SME loans in case of default. CGSs can contribute to expand access to finance for SMEs. Yet they may bring limited value added and prove costly if they are not designed and implemented well. There have been efforts in recent years to identify good practices for CGSs, but the international community still lacks a common set of principles or standards that can help governments establish, operate, and evaluate CGSs for SMEs. The Principles for Public Credit Guarantees for SMEs are filling this gap. The Principles provide a generally accepted set of good practices, which can serve as a global reference for the design, execution, and evaluation of public CGSs around the world. The Principles propose appropriate governance and risk management arrangements, as well as operational conduct rules for CGSs, which can lead to improved outreach and additionality along with financial sustainability. Developed through extensive consultations with stakeholders, the Principles draw from both the literature on good practices for CGSs and sound practices implemented by a number of successful CGSs around the world. 2015-12-14T18:55:48Z 2015-12-14T18:55:48Z 2015-12 Working Paper http://documents.worldbank.org/curated/en/2015/12/25665897/task-force-design-implementation-evaluation-public-credit-guarantee-schemes-small-medium-enterprises-principles-public-credit-guarantee-schemes-smes http://hdl.handle.net/10986/23329 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research