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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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| 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 |
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okr-10986-3373 |
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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 |
| 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 |