Publication: Secured Transactions, Collateral Registries and Movable Asset-Based Financing: Knowledge Guide
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2019-11
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2019-11
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The main objective of this Knowledge Guide is to provide guidance to the World Bank Group (WBG) staff, donor institutions, government officials and other practitioners on the objectives and implementation of secured transactions reforms, as well as the factors that affect the implementation. Chapter one contains a discussion of the economic rationale for modern secured transactions systems, providing a background on the utility of the reforms and their roles within the broader credit infrastructure, as well as a detailed section on various secured lending products. Chapter two charts some recent trends that impact secured transactions that may have more profound effects in the regulatory space, especially prudential regulation of financial institutions with respect to the deployment of various credit products, or initiatives that have the potential to disrupt existing processes, such as distributed ledger and blockchain technologies. Chapter three provides lessons from the implementation of the reforms, highlighting the key elements of international best practices and the challenges to their implementation on the ground. The chapter goes beyond secured transactions laws and examines their impact on other legislation, highlighting the need for proper integration within the broader legal frame¬work. Chapter four addresses a number of aspects of the core building block of modern secured transactions regimes, an electronic registry for notices of security rights (collateral registry). This Chapter focuses on various design considerations and their implementation. Finally, chapter five outlines the key elements of public awareness and capacity building that are essential to the successful deployment of a reform that is designed to increase access to credit.
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“World Bank. 2019. Secured Transactions, Collateral Registries and Movable Asset-Based Financing: Knowledge Guide. © World Bank. http://hdl.handle.net/10986/32551 License: CC BY 3.0 IGO.”
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Publication Secured Transaction Systems and Collateral Registries(Washington, DC, 2010)The main objective of this toolkit is to provide technical advice and guidance to World Bank Group staff, donor institutions, government officials and other practitioners on the implementation of secured transactions law and institutional reforms in emerging market countries. However, the Toolkit has not been designed to eliminate the need for in-person expert advice for governments that undertake to introduce a secured transactions system. It is necessary to take into account the factors that are unique to each jurisdiction. The content of the Toolkit will guide the reader through the various stages of the project cycle (identification, diagnostic, solution design, implementation, and monitoring and evaluation) involved in the introduction of secured transactions reforms. The recommendations presented in the Toolkit are based on IFC s experience in the secured transactions area, the contributions of a number of experts in this field, existing literature, and reform experience in a number of emerging market countries and the existing best practices in jurisdictions with advanced secured transactions systems. While the Toolkit does not cover all aspects of secured transactions reform, it addresses the most important elements of such reform. The Toolkit does not address secured financing systems involving immovable property as collateral. Chapter one contains a brief discussion of the economic rationale for modern secured transactions systems. Chapter two describes the main elements that a proper diagnostic study of the state of secured transactions in a country should contain. Chapter three provides an overview of project management techniques required to support the full project cycle. One of the most important parts of the Toolkit, chapter four, which deals with the implementation of the reform, includes sections on building consensus for the reform, developing and enacting the necessary laws and regulations, designing and implementing a secured transactions registry, building local awareness and conducting secured transactions training. Chapter five of the Toolkit elaborates in detail the monitoring and evaluation strategy that should be employed following the implementation of the project to assess the effect and impact of reforms. Finally, the toolkit contains a number of annexes that include tools available to develop the different phases of the project as well as technical information.Publication Collateral Registries for Movable Assets : Does Their Introduction Spur Firms' Access to Bank Finance?(World Bank, Washington, DC, 2013-06)Using firm-level surveys for up to 73 countries, this paper explores the impact of introducing collateral registries for movable assets on firms' access to bank finance. It compares firms' access to bank finance in seven countries that introduced collateral registries for movable assets against three control groups: firms in all countries that did not introduce a registry, firms in a sample of countries matched by location and income per capita to the countries that introduced registries for movable assets, and firms in countries that undertook other types of collateral reforms but did not set up registries for movable assets. Overall, the analysis finds that introducing collateral registries for movable assets increases firms' access to bank finance. There is also some evidence that this effect is larger among smaller firms.Publication Secured Transactions Systems and Collateral Registries(World Bank, Washington, DC, 2010-01)The main objective of this toolkit is to provide technical advice and guidance to World Bank Group staff, donor institutions, government officials and other practitioners on the implementation of secured transactions law and institutional reforms in emerging market countries. However, the Toolkit has not been designed to eliminate the need for in-person expert advice for governments that undertake to introduce a secured transactions system. It is necessary to take into account the factors that are unique to each jurisdiction. The content of the Toolkit will guide the reader through the various stages of the project cycle (identification, diagnostic, solution design, implementation, and monitoring and evaluation) involved in the introduction of secured transactions reforms. The recommendations presented in the Toolkit are based on IFC s experience in the secured transactions area, the contributions of a number of experts in this field, existing literature, and reform experience in a number of emerging market countries and the existing best practices in jurisdictions with advanced secured transactions systems. While the Toolkit does not cover all aspects of secured transactions reform, it addresses the most important elements of such reform. The Toolkit does not address secured financing systems involving immovable property as collateral. Chapter one contains a brief discussion of the economic rationale for modern secured transactions systems. Chapter two describes the main elements that a proper diagnostic study of the state of secured transactions in a country should contain. Chapter three provides an overview of project management techniques required to support the full project cycle. One of the most important parts of the Toolkit, chapter four, which deals with the implementation of the reform, includes sections on building consensus for the reform, developing and enacting the necessary laws and regulations, designing and implementing a secured transactions registry, building local awareness and conducting secured transactions training. Chapter five of the Toolkit elaborates in detail the monitoring and evaluation strategy that should be employed following the implementation of the project to assess the effect and impact of reforms. Finally, the toolkit contains a number of annexes that include tools available to develop the different phases of the project as well as technical information.Publication It Started in Ghana : Implementing Africa's First Collateral Registry(World Bank, Washington, DC, 2012-12)The author all want to build something that matters. From the advisory Services perspective, no matter the business line, it's about helping meaningful players accomplish sustainable results. However, entering a continent with a new product is something that can be extremely challenging. This smart lesson tells of a project that, against all odds, installed the first online collateral registry in Africa, designed in line with international best practices and following principles established by the United Nations Commission on International Trade Law.Publication Increasing Access to Credit through Reforming Secured Transactions in the MENA Region(2011-03-01)This paper provides a comparative summary of secured transactions systems related to the use of movable property as collateral in the MENA region vis a vis international practices in countries with modern secured transactions systems. The paper sets out the importance of introducing reforms in the area of secured transactions with the objective of increasing access to credit for businesses, particularly SMEs. The MENA region clearly lags behind all other regions in the introduction of secured transactions reforms. The paper summarizes many of the weaknesses common across the region. The two main critical areas that need urgent reforms are the creation of modern secured transactions laws and electronic movable collateral registries, and the need to improve enforcement mechanisms for security interests in movable property.
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