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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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2015
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| 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 |
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okr-10986-23329 |
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| 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 |