The Status of Bank Lending to SMEs in the Middle East and North Africa Region : Results of a Joint Survey of the Union of Arab Bank and the World Bank

Among the principal constraints for SME lending is the lack of SME transparency, poor credit information from credit registries and bureaus, and weak creditor rights. If constraints can be addressed, lending can potentially reach bank targets of 21...

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Main Authors: Rocha, Roberto, Farazi, Subika, Khouri, Rania, Pearce, Douglas
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
TAX
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110324082812
http://hdl.handle.net/10986/3373
id okr-10986-3373
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
topic ACCESS TO CREDIT
ACCESS TO EXTERNAL FINANCE
ACCESS TO FINANCE
ASSET FINANCING
BANK COMPETITION
BANK FINANCING
BANK LENDING
BANK LOAN
BANK LOANS
BANK POLICY
BANKING ASSOCIATIONS
BANKING INDUSTRY
BANKING MARKETS
BANKING SERVICES
BANKING SYSTEM
BANKING SYSTEMS
BANKRUPTCY
BANKRUPTCY LAWS
BANKS
BORROWING
BRANCH NETWORK
BRANCH NETWORKS
BUSINESS CENTER
CASH MANAGEMENT
COLLATERAL
COLLATERAL REGIME
COLLATERAL REGIMES
COLLATERAL REQUIREMENTS
COMMODITY PRICE
COMPETITION POLICY
CONTRACT ENFORCEMENT
CORPORATE MARKET
COST OF CREDIT
COUNTRY COMPARISONS
CREDIT BUREAU
CREDIT BUREAUS
CREDIT GUARANTEE
CREDIT GUARANTEES
CREDIT INFORMATION
CREDIT INFORMATION SYSTEMS
CREDIT REGISTRIES
CREDIT REGISTRY
CREDIT REPORTING
CREDIT REPORTING SYSTEMS
CREDIT RISK
CREDIT SCORES
CREDIT SCORING
CREDIT SUBSIDIES
CREDITOR
CREDITOR RIGHTS
CREDITORS
CURRENCY
CURRENT ACCOUNTS
DEBT
DEFAULT PROBABILITY
DEPENDENT
DEPOSIT
DEPOSITS
DEVELOPING COUNTRIES
DOMESTIC BANKS
DUMMY VARIABLE
ECONOMIC ACTIVITY
ECONOMICS
EMPLOYMENT
ENABLING ENVIRONMENT
ENABLING ENVIRONMENTS
ENTRY REQUIREMENTS
EXCHANGE RATES
EXPENDITURES
FACTORING
FEMALE CLIENTS
FINANCE CONSTRAINTS
FINANCE CORPORATION
FINANCIAL DEVELOPMENT
FINANCIAL INFRASTRUCTURE
FINANCIAL INSTITUTION
FINANCIAL INSTITUTIONS
FINANCING OBSTACLES
FORECLOSURE
FOREIGN BANKS
GENDER
GOOD CREDIT
GOVERNMENT INTERVENTION
GOVERNMENT OWNERSHIP
GUARANTEE SCHEME
GUARANTEE SCHEMES
HOUSING
HOUSING LOANS
INDIVIDUAL BANK
INDIVIDUAL BANKS
INFORMATION ASYMMETRIES
INSOLVENCY
INSOLVENCY REGIMES
INSTRUMENT
INSURANCE
INTEREST RATE
INTEREST RATE CEILINGS
INTEREST RATE CONTROLS
INTEREST RATES
INTEREST SUBSIDIES
INTERNATIONAL BANK
INTERNATIONAL BANKS
INTERNATIONAL FINANCE
INVESTMENT FINANCE
INVESTMENT LOANS
INVESTMENT PURPOSES
ISLAMIC FINANCE
LACK OF ACCESS
LARGE BANKS
LARGE FIRMS
LEASED ASSETS
LEGAL CONSTRAINTS
LEGAL FRAMEWORK
LEGAL RIGHTS
LENDERS
LENDING DECISION
LENDING DECISIONS
LENDING TECHNIQUES
LINE OF CREDIT
LIQUIDATION
LOAN
LOAN DECISION
LOAN OFFICERS
LOAN PERFORMANCE
LOAN PORTFOLIO
LOAN PORTFOLIOS
LONG-TERM LENDING
MACROECONOMIC INSTABILITY
MANDATES
MARKET CONDITIONS
MARKET SHARE
MATURITY
MOVABLE ASSETS
MOVABLE COLLATERAL
NOTARIES
NUMBER OF BANKS
OUTREACH
OUTSTANDING CREDIT
OWNERSHIP RIGHTS
OWNERSHIP STRUCTURES
PARTIAL CREDIT
POOR CREDIT
PRIVATE BANK
PRIVATE BANKS
PRIVATE CREDIT
PRIVATE CREDIT BUREAU
PRIVATE CREDIT BUREAUS
PROFITABILITY
PRUDENTIAL REGULATIONS
PUBLIC BANKS
PUBLIC CREDIT
PUBLIC REGISTRIES
PUBLIC REGISTRY
RATING SYSTEMS
REAL ESTATE
RECOVERY RATE
REGIONAL BANKS
REGISTRY OFFICIALS
RELATIONSHIP BANKING
RELATIONSHIP LENDING
REORGANIZATION
REPAYMENT
REPOSSESSION
RESERVE
RESERVE REQUIREMENTS
RESERVES
RETURNS
RISK MANAGEMENT
RISK MANAGEMENT SYSTEMS
SECONDARY MARKETS
SHARE OF INVESTMENT
SMALL BANKS
SMALL BUSINESS
SMALL ENTERPRISE
START-UP
STATE BANKS
STATISTICAL ANALYSIS
STRENGTH OF CREDITOR RIGHTS
SUBSIDIARIES
SUPPLY CHAIN
SUPPLY CHAINS
TAX
TAX TREATMENT
TRADE FINANCE
TRANSPARENCY
TURNOVER
UNION
WEAK ASSET
WEAK COLLATERAL
WHOLESALE BANKS
WORKING CAPITAL
spellingShingle ACCESS TO CREDIT
ACCESS TO EXTERNAL FINANCE
ACCESS TO FINANCE
ASSET FINANCING
BANK COMPETITION
BANK FINANCING
BANK LENDING
BANK LOAN
BANK LOANS
BANK POLICY
BANKING ASSOCIATIONS
BANKING INDUSTRY
BANKING MARKETS
BANKING SERVICES
BANKING SYSTEM
BANKING SYSTEMS
BANKRUPTCY
BANKRUPTCY LAWS
BANKS
BORROWING
BRANCH NETWORK
BRANCH NETWORKS
BUSINESS CENTER
CASH MANAGEMENT
COLLATERAL
COLLATERAL REGIME
COLLATERAL REGIMES
COLLATERAL REQUIREMENTS
COMMODITY PRICE
COMPETITION POLICY
CONTRACT ENFORCEMENT
CORPORATE MARKET
COST OF CREDIT
COUNTRY COMPARISONS
CREDIT BUREAU
CREDIT BUREAUS
CREDIT GUARANTEE
CREDIT GUARANTEES
CREDIT INFORMATION
CREDIT INFORMATION SYSTEMS
CREDIT REGISTRIES
CREDIT REGISTRY
CREDIT REPORTING
CREDIT REPORTING SYSTEMS
CREDIT RISK
CREDIT SCORES
CREDIT SCORING
CREDIT SUBSIDIES
CREDITOR
CREDITOR RIGHTS
CREDITORS
CURRENCY
CURRENT ACCOUNTS
DEBT
DEFAULT PROBABILITY
DEPENDENT
DEPOSIT
DEPOSITS
DEVELOPING COUNTRIES
DOMESTIC BANKS
DUMMY VARIABLE
ECONOMIC ACTIVITY
ECONOMICS
EMPLOYMENT
ENABLING ENVIRONMENT
ENABLING ENVIRONMENTS
ENTRY REQUIREMENTS
EXCHANGE RATES
EXPENDITURES
FACTORING
FEMALE CLIENTS
FINANCE CONSTRAINTS
FINANCE CORPORATION
FINANCIAL DEVELOPMENT
FINANCIAL INFRASTRUCTURE
FINANCIAL INSTITUTION
FINANCIAL INSTITUTIONS
FINANCING OBSTACLES
FORECLOSURE
FOREIGN BANKS
GENDER
GOOD CREDIT
GOVERNMENT INTERVENTION
GOVERNMENT OWNERSHIP
GUARANTEE SCHEME
GUARANTEE SCHEMES
HOUSING
HOUSING LOANS
INDIVIDUAL BANK
INDIVIDUAL BANKS
INFORMATION ASYMMETRIES
INSOLVENCY
INSOLVENCY REGIMES
INSTRUMENT
INSURANCE
INTEREST RATE
INTEREST RATE CEILINGS
INTEREST RATE CONTROLS
INTEREST RATES
INTEREST SUBSIDIES
INTERNATIONAL BANK
INTERNATIONAL BANKS
INTERNATIONAL FINANCE
INVESTMENT FINANCE
INVESTMENT LOANS
INVESTMENT PURPOSES
ISLAMIC FINANCE
LACK OF ACCESS
LARGE BANKS
LARGE FIRMS
LEASED ASSETS
LEGAL CONSTRAINTS
LEGAL FRAMEWORK
LEGAL RIGHTS
LENDERS
LENDING DECISION
LENDING DECISIONS
LENDING TECHNIQUES
LINE OF CREDIT
LIQUIDATION
LOAN
LOAN DECISION
LOAN OFFICERS
LOAN PERFORMANCE
LOAN PORTFOLIO
LOAN PORTFOLIOS
LONG-TERM LENDING
MACROECONOMIC INSTABILITY
MANDATES
MARKET CONDITIONS
MARKET SHARE
MATURITY
MOVABLE ASSETS
MOVABLE COLLATERAL
NOTARIES
NUMBER OF BANKS
OUTREACH
OUTSTANDING CREDIT
OWNERSHIP RIGHTS
OWNERSHIP STRUCTURES
PARTIAL CREDIT
POOR CREDIT
PRIVATE BANK
PRIVATE BANKS
PRIVATE CREDIT
PRIVATE CREDIT BUREAU
PRIVATE CREDIT BUREAUS
PROFITABILITY
PRUDENTIAL REGULATIONS
PUBLIC BANKS
PUBLIC CREDIT
PUBLIC REGISTRIES
PUBLIC REGISTRY
RATING SYSTEMS
REAL ESTATE
RECOVERY RATE
REGIONAL BANKS
REGISTRY OFFICIALS
RELATIONSHIP BANKING
RELATIONSHIP LENDING
REORGANIZATION
REPAYMENT
REPOSSESSION
RESERVE
RESERVE REQUIREMENTS
RESERVES
RETURNS
RISK MANAGEMENT
RISK MANAGEMENT SYSTEMS
SECONDARY MARKETS
SHARE OF INVESTMENT
SMALL BANKS
SMALL BUSINESS
SMALL ENTERPRISE
START-UP
STATE BANKS
STATISTICAL ANALYSIS
STRENGTH OF CREDITOR RIGHTS
SUBSIDIARIES
SUPPLY CHAIN
SUPPLY CHAINS
TAX
TAX TREATMENT
TRADE FINANCE
TRANSPARENCY
TURNOVER
UNION
WEAK ASSET
WEAK COLLATERAL
WHOLESALE BANKS
WORKING CAPITAL
Rocha, Roberto
Farazi, Subika
Khouri, Rania
Pearce, Douglas
The Status of Bank Lending to SMEs in the Middle East and North Africa Region : Results of a Joint Survey of the Union of Arab Bank and the World Bank
geographic_facet Middle East and North Africa
Middle East and North Africa
Middle East and North Africa
relation Policy Research working paper ; no. WPS 5607
description Among the principal constraints for SME lending is the lack of SME transparency, poor credit information from credit registries and bureaus, and weak creditor rights. If constraints can be addressed, lending can potentially reach bank targets of 21 percent. State banks still play an important role in financing SMEs in the MENA region, but they use less sophisticated risk management systems than private banks. On another hand, credit guarantee schemes are a popular form of support to SME finance in the region, and are associated with higher levels of SME lending. The paper concludes that MENA policy makers should prioritize improvements in financial infrastructure, including greater coverage and depth of credit bureaus, improvements in the collateral regime (especially for movable assets), and increased competition between banks and also non-banks. Weaknesses in insolvency regimes and credit reporting systems should also be alleviated. Direct policy interventions through public banks, guarantee schemes, lower reserve requirements and subsidized lending and other measures have played a role in compensating for MENA's weak financial infrastructure, but more sustainable structural solutions are needed.
format Publications & Research :: Policy Research Working Paper
author Rocha, Roberto
Farazi, Subika
Khouri, Rania
Pearce, Douglas
author_facet Rocha, Roberto
Farazi, Subika
Khouri, Rania
Pearce, Douglas
author_sort Rocha, Roberto
title The Status of Bank Lending to SMEs in the Middle East and North Africa Region : Results of a Joint Survey of the Union of Arab Bank and the World Bank
title_short The Status of Bank Lending to SMEs in the Middle East and North Africa Region : Results of a Joint Survey of the Union of Arab Bank and the World Bank
title_full The Status of Bank Lending to SMEs in the Middle East and North Africa Region : Results of a Joint Survey of the Union of Arab Bank and the World Bank
title_fullStr The Status of Bank Lending to SMEs in the Middle East and North Africa Region : Results of a Joint Survey of the Union of Arab Bank and the World Bank
title_full_unstemmed The Status of Bank Lending to SMEs in the Middle East and North Africa Region : Results of a Joint Survey of the Union of Arab Bank and the World Bank
title_sort status of bank lending to smes in the middle east and north africa region : results of a joint survey of the union of arab bank and the world bank
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110324082812
http://hdl.handle.net/10986/3373
_version_ 1764386877649977344
spelling okr-10986-33732021-04-23T14:02:09Z The Status of Bank Lending to SMEs in the Middle East and North Africa Region : Results of a Joint Survey of the Union of Arab Bank and the World Bank Rocha, Roberto Farazi, Subika Khouri, Rania Pearce, Douglas ACCESS TO CREDIT ACCESS TO EXTERNAL FINANCE ACCESS TO FINANCE ASSET FINANCING BANK COMPETITION BANK FINANCING BANK LENDING BANK LOAN BANK LOANS BANK POLICY BANKING ASSOCIATIONS BANKING INDUSTRY BANKING MARKETS BANKING SERVICES BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BANKRUPTCY LAWS BANKS BORROWING BRANCH NETWORK BRANCH NETWORKS BUSINESS CENTER CASH MANAGEMENT COLLATERAL COLLATERAL REGIME COLLATERAL REGIMES COLLATERAL REQUIREMENTS COMMODITY PRICE COMPETITION POLICY CONTRACT ENFORCEMENT CORPORATE MARKET COST OF CREDIT COUNTRY COMPARISONS CREDIT BUREAU CREDIT BUREAUS CREDIT GUARANTEE CREDIT GUARANTEES CREDIT INFORMATION CREDIT INFORMATION SYSTEMS CREDIT REGISTRIES CREDIT REGISTRY CREDIT REPORTING CREDIT REPORTING SYSTEMS CREDIT RISK CREDIT SCORES CREDIT SCORING CREDIT SUBSIDIES CREDITOR CREDITOR RIGHTS CREDITORS CURRENCY CURRENT ACCOUNTS DEBT DEFAULT PROBABILITY DEPENDENT DEPOSIT DEPOSITS DEVELOPING COUNTRIES DOMESTIC BANKS DUMMY VARIABLE ECONOMIC ACTIVITY ECONOMICS EMPLOYMENT ENABLING ENVIRONMENT ENABLING ENVIRONMENTS ENTRY REQUIREMENTS EXCHANGE RATES EXPENDITURES FACTORING FEMALE CLIENTS FINANCE CONSTRAINTS FINANCE CORPORATION FINANCIAL DEVELOPMENT FINANCIAL INFRASTRUCTURE FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCING OBSTACLES FORECLOSURE FOREIGN BANKS GENDER GOOD CREDIT GOVERNMENT INTERVENTION GOVERNMENT OWNERSHIP GUARANTEE SCHEME GUARANTEE SCHEMES HOUSING HOUSING LOANS INDIVIDUAL BANK INDIVIDUAL BANKS INFORMATION ASYMMETRIES INSOLVENCY INSOLVENCY REGIMES INSTRUMENT INSURANCE INTEREST RATE INTEREST RATE CEILINGS INTEREST RATE CONTROLS INTEREST RATES INTEREST SUBSIDIES INTERNATIONAL BANK INTERNATIONAL BANKS INTERNATIONAL FINANCE INVESTMENT FINANCE INVESTMENT LOANS INVESTMENT PURPOSES ISLAMIC FINANCE LACK OF ACCESS LARGE BANKS LARGE FIRMS LEASED ASSETS LEGAL CONSTRAINTS LEGAL FRAMEWORK LEGAL RIGHTS LENDERS LENDING DECISION LENDING DECISIONS LENDING TECHNIQUES LINE OF CREDIT LIQUIDATION LOAN LOAN DECISION LOAN OFFICERS LOAN PERFORMANCE LOAN PORTFOLIO LOAN PORTFOLIOS LONG-TERM LENDING MACROECONOMIC INSTABILITY MANDATES MARKET CONDITIONS MARKET SHARE MATURITY MOVABLE ASSETS MOVABLE COLLATERAL NOTARIES NUMBER OF BANKS OUTREACH OUTSTANDING CREDIT OWNERSHIP RIGHTS OWNERSHIP STRUCTURES PARTIAL CREDIT POOR CREDIT PRIVATE BANK PRIVATE BANKS PRIVATE CREDIT PRIVATE CREDIT BUREAU PRIVATE CREDIT BUREAUS PROFITABILITY PRUDENTIAL REGULATIONS PUBLIC BANKS PUBLIC CREDIT PUBLIC REGISTRIES PUBLIC REGISTRY RATING SYSTEMS REAL ESTATE RECOVERY RATE REGIONAL BANKS REGISTRY OFFICIALS RELATIONSHIP BANKING RELATIONSHIP LENDING REORGANIZATION REPAYMENT REPOSSESSION RESERVE RESERVE REQUIREMENTS RESERVES RETURNS RISK MANAGEMENT RISK MANAGEMENT SYSTEMS SECONDARY MARKETS SHARE OF INVESTMENT SMALL BANKS SMALL BUSINESS SMALL ENTERPRISE START-UP STATE BANKS STATISTICAL ANALYSIS STRENGTH OF CREDITOR RIGHTS SUBSIDIARIES SUPPLY CHAIN SUPPLY CHAINS TAX TAX TREATMENT TRADE FINANCE TRANSPARENCY TURNOVER UNION WEAK ASSET WEAK COLLATERAL WHOLESALE BANKS WORKING CAPITAL Among the principal constraints for SME lending is the lack of SME transparency, poor credit information from credit registries and bureaus, and weak creditor rights. If constraints can be addressed, lending can potentially reach bank targets of 21 percent. State banks still play an important role in financing SMEs in the MENA region, but they use less sophisticated risk management systems than private banks. On another hand, credit guarantee schemes are a popular form of support to SME finance in the region, and are associated with higher levels of SME lending. The paper concludes that MENA policy makers should prioritize improvements in financial infrastructure, including greater coverage and depth of credit bureaus, improvements in the collateral regime (especially for movable assets), and increased competition between banks and also non-banks. Weaknesses in insolvency regimes and credit reporting systems should also be alleviated. Direct policy interventions through public banks, guarantee schemes, lower reserve requirements and subsidized lending and other measures have played a role in compensating for MENA's weak financial infrastructure, but more sustainable structural solutions are needed. 2012-03-19T18:01:16Z 2012-03-19T18:01:16Z 2011-03-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110324082812 http://hdl.handle.net/10986/3373 English Policy Research working paper ; no. WPS 5607 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Middle East and North Africa Middle East and North Africa Middle East and North Africa