Publication:
The Cross-Country Magnitude and Determinants of Collateral Borrowing

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dc.contributor.authorQian, Rong
dc.contributor.authorNguyen, Ha
dc.date.accessioned2014-08-29T18:52:46Z
dc.date.available2014-08-29T18:52:46Z
dc.date.issued2012-03
dc.description.abstractUsing the World Bank Enterprise Survey covering 6,800 firms across 43 developing countries, this paper investigates the prevalence and determinants of collateralized borrowing. It focuses on the following two aspects: (1) whether firms' loans from financial institutions require collateral (the extensive margin) and (2) the collateral value relative to the loan value (the intensive margin). On the first aspect, it finds that collateral borrowing is prevalent. On average, 73 percent of loans from financial institutions require collateral. Firms that are small or sell domestically are significantly less likely to pledge collateral. Shorter loans and loans from non-bank financial institutions are also less often associated with collateral. On the second aspect, it finds that on average the loan value is at least 72 percent of the collateral value. The only robust and significant determinants of the collateral value are the type of assets used for collateral. The analysis also checks whether countries' income and institutions affect collateralized borrowing. It finds that firms in countries with higher income and better institutions and credit information are significantly less likely to pledge collateral. These factors, however, have little impact on collateral values.en
dc.identifierhttp://documents.worldbank.org/curated/en/2012/03/15949444/cross-country-magnitude-determinants-collateral-borrowing
dc.identifier.doi10.1596/1813-9450-6001
dc.identifier.urihttps://hdl.handle.net/10986/19878
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 6001
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO CREDIT
dc.subjectACCESS TO FINANCE
dc.subjectACCESSIBILITY
dc.subjectACCOUNT RECEIVABLE
dc.subjectACCOUNTS RECEIVABLE
dc.subjectAMOUNT OF COLLATERAL
dc.subjectAMOUNT OF LOAN
dc.subjectASSET PRICES
dc.subjectASSET VALUE
dc.subjectAVAILABILITY OF CREDIT
dc.subjectBANK LENDING
dc.subjectBANK LOAN
dc.subjectBANK POLICY
dc.subjectBANK RISK
dc.subjectBANKING SECTOR
dc.subjectBANKS
dc.subjectBOND
dc.subjectBOND RATINGS
dc.subjectBONDS
dc.subjectBORROWER
dc.subjectBORROWING
dc.subjectBORROWING CAPACITY
dc.subjectBUSINESS CYCLE
dc.subjectBUSINESS INVESTMENT
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL INFLOWS
dc.subjectCAPITAL MARKETS
dc.subjectCASH FLOW
dc.subjectCHECKS
dc.subjectCLAIM
dc.subjectCOLLATERAL
dc.subjectCOLLATERAL AMOUNT
dc.subjectCOLLATERAL REQUIREMENT
dc.subjectCOLLATERALIZATION
dc.subjectCOMMERCIAL BANKS
dc.subjectCORPORATE FINANCE
dc.subjectCORPORATE INVESTMENT
dc.subjectCORRUPTION
dc.subjectCOUNTRY DUMMIES
dc.subjectCOUNTRY FIXED EFFECT
dc.subjectCOUNTRY FIXED EFFECTS
dc.subjectCREDIT BUREAU
dc.subjectCREDIT CONSTRAINT
dc.subjectCREDIT CONSTRAINTS
dc.subjectCREDIT COOPERATIVE
dc.subjectCREDIT COOPERATIVES
dc.subjectCREDIT INFORMATION
dc.subjectCREDIT INFORMATION SYSTEM
dc.subjectCREDIT MARKET
dc.subjectCREDIT RATINGS
dc.subjectCREDIT RATIONING
dc.subjectCREDIT REGISTRY
dc.subjectCREDIT SCORES
dc.subjectCREDIT UNIONS
dc.subjectCREDIT WORTHINESS
dc.subjectCREDITORS
dc.subjectDEBT
dc.subjectDEBT CAPACITY
dc.subjectDEBTORS
dc.subjectDEBTS
dc.subjectDEFAULT RISK
dc.subjectDEFAULTS
dc.subjectDEPENDENT
dc.subjectDEPOSIT
dc.subjectDEPOSITS
dc.subjectDEVELOPING COUNTRIES
dc.subjectDIVIDEND
dc.subjectDIVIDEND PAYOUTS
dc.subjectDOMESTIC BANK
dc.subjectDOMESTIC CREDIT
dc.subjectDOMESTIC MARKET
dc.subjectDUMMY VARIABLE
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC CRISIS
dc.subjectECONOMIC DEVELOPMENT
dc.subjectEMPLOYMENT
dc.subjectEQUIPMENT
dc.subjectEQUITIES
dc.subjectEQUITY SECURITIES
dc.subjectESTATE PROPERTIES
dc.subjectEXPORTER
dc.subjectEXPORTERS
dc.subjectEXTERNAL FINANCE
dc.subjectEXTERNALITIES
dc.subjectFEDERAL RESERVE
dc.subjectFEDERAL RESERVE BANK
dc.subjectFINANCE COMPANIES
dc.subjectFINANCIAL ASSETS
dc.subjectFINANCIAL CONSTRAINTS
dc.subjectFINANCIAL CRISES
dc.subjectFINANCIAL DEVELOPMENT
dc.subjectFINANCIAL FACTORS
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL INTERMEDIARY
dc.subjectFINANCIAL OBSTACLES
dc.subjectFINANCIAL RESOURCES
dc.subjectFINANCIAL STATEMENT
dc.subjectFINANCIAL STUDIES
dc.subjectFINANCING CONSTRAINT
dc.subjectFINANCING CONSTRAINTS
dc.subjectFINANCING OBSTACLES
dc.subjectFINANCING SOURCES
dc.subjectFIRM GROWTH
dc.subjectFOREIGN FIRM
dc.subjectFORMAL BANKS
dc.subjectFORMAL FINANCIAL INSTITUTIONS
dc.subjectFORMAL LENDING
dc.subjectGOVERNANCE INDICATORS
dc.subjectHOUSEHOLDS
dc.subjectILLIQUIDITY
dc.subjectINCOME
dc.subjectINCOME LEVELS
dc.subjectINDUSTRIAL LOANS
dc.subjectINFORMAL BORROWING
dc.subjectINFORMAL FINANCE
dc.subjectINFORMAL LENDERS
dc.subjectINFORMATION ASYMMETRIES
dc.subjectINFORMATION ASYMMETRY
dc.subjectINSIDER TRADING
dc.subjectINSTRUMENT
dc.subjectINTEREST RATE
dc.subjectINTEREST RATE SPREAD
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL FINANCIAL CRISES
dc.subjectINVENTORIES
dc.subjectJOINT VENTURE
dc.subjectLACK OF ASSETS
dc.subjectLACK OF COLLATERAL
dc.subjectLARGE FIRMS
dc.subjectLEGAL SYSTEM
dc.subjectLEGAL SYSTEM EFFICIENCY
dc.subjectLENDER
dc.subjectLENDERS
dc.subjectLENDING DECISIONS
dc.subjectLENDING INSTITUTIONS
dc.subjectLEVERAGE
dc.subjectLINE OF CREDIT
dc.subjectLINES OF CREDIT
dc.subjectLIQUIDATION
dc.subjectLIQUIDATION COST
dc.subjectLIQUIDITY CONSTRAINTS
dc.subjectLIQUIDITY CRUNCH
dc.subjectLOAN
dc.subjectLOAN CHARACTERISTICS
dc.subjectLOAN QUALITY
dc.subjectMACROECONOMICS
dc.subjectMARKET DEVELOPMENT
dc.subjectMICROFINANCE
dc.subjectMICROFINANCE INSTITUTIONS
dc.subjectMONETARY POLICY
dc.subjectMORTGAGE
dc.subjectMORTGAGE CREDIT
dc.subjectNEGATIVE SHOCKS
dc.subjectNONBANK INSTITUTIONS
dc.subjectOUTPUT
dc.subjectOVERDRAFT
dc.subjectOVERDRAFT FACILITIES
dc.subjectOVERDRAFT FACILITY
dc.subjectPERSONAL ASSET
dc.subjectPERSONAL ASSETS
dc.subjectPLEDGE COLLATERAL
dc.subjectPORTFOLIO
dc.subjectPORTFOLIO CONSTRAINTS
dc.subjectPRIVATE BANK
dc.subjectPRIVATE BANKS
dc.subjectPRIVATE COMMERCIAL BANKS
dc.subjectPRIVATE CREDIT
dc.subjectPRIVATE CREDIT BUREAU
dc.subjectPROBABILITY OF DEFAULT
dc.subjectPUBLIC BANKS
dc.subjectPUBLIC CREDIT
dc.subjectPUBLIC ENTERPRISES
dc.subjectREAL ESTATE
dc.subjectRECESSIONS
dc.subjectREPAYMENT
dc.subjectREPUTATION
dc.subjectRETURN
dc.subjectRULE OF LAW
dc.subjectSAVINGS
dc.subjectSAVINGS DEPOSITS
dc.subjectSECURITIES
dc.subjectSHAREHOLDER
dc.subjectSMALL FIRM FINANCE
dc.subjectSPECIFIC ASSETS
dc.subjectSTATE BANK
dc.subjectSTATE BANKS
dc.subjectSTOCK MARKET
dc.subjectSTOCK MARKET DEVELOPMENT
dc.subjectSTOCKS
dc.subjectTAXATION
dc.subjectTRADE CREDITS
dc.subjectVALUABLE ASSETS
dc.subjectVALUE OF COLLATERAL
dc.subjectVOLATILITY
dc.subjectWORLD DEVELOPMENT INDICATOR
dc.titleThe Cross-Country Magnitude and Determinants of Collateral Borrowingen
dspace.entity.typePublication
okr.crossref.titleThe Cross-Country Magnitude and Determinants of Collateral Borrowing
okr.date.disclosure2012-03-31
okr.date.doiregistration2025-04-10T11:02:44.293846Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2012/03/15949444/cross-country-magnitude-determinants-collateral-borrowing
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.guid233121468181774356
okr.identifier.doi10.1596/1813-9450-6001
okr.identifier.externaldocumentum090224b0868e74a8_2_0
okr.identifier.internaldocumentum15949444
okr.identifier.reportWPS6001
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2012/03/19/000158349_20120319114110/Rendered/PDF/WPS6001.pdfen
okr.sectorFinance :: General finance sector
okr.topicFinance and Financial Sector Development::Access to Finance
okr.topicBanks and Banking Reform
okr.topicPrivate Sector Development::Emerging Markets
okr.topicFinance and Financial Sector Development::Bankruptcy and Resolution of Financial Distress
okr.topicFinance and Financial Sector Development::Debt Markets
okr.unitMacroeconomics and Growth Team, Development Research Group
okr.volume1 of 1
relation.isAuthorOfPublicationc1c4d7c1-b16a-5f9a-a0ac-f855e347728a
relation.isAuthorOfPublication.latestForDiscoveryc1c4d7c1-b16a-5f9a-a0ac-f855e347728a
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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