Rocha, RobertoFarazi, SubikaKhouri, RaniaPearce, Douglas2012-03-192012-03-192011-03-01https://hdl.handle.net/10986/3373Among 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.CC BY 3.0 IGOACCESS TO CREDITACCESS TO EXTERNAL FINANCEACCESS TO FINANCEASSET FINANCINGBANK COMPETITIONBANK FINANCINGBANK LENDINGBANK LOANBANK LOANSBANK POLICYBANKING ASSOCIATIONSBANKING INDUSTRYBANKING MARKETSBANKING SERVICESBANKING SYSTEMBANKING SYSTEMSBANKRUPTCYBANKRUPTCY LAWSBANKSBORROWINGBRANCH NETWORKBRANCH NETWORKSBUSINESS CENTERCASH MANAGEMENTCOLLATERALCOLLATERAL REGIMECOLLATERAL REGIMESCOLLATERAL REQUIREMENTSCOMMODITY PRICECOMPETITION POLICYCONTRACT ENFORCEMENTCORPORATE MARKETCOST OF CREDITCOUNTRY COMPARISONSCREDIT BUREAUCREDIT BUREAUSCREDIT GUARANTEECREDIT GUARANTEESCREDIT INFORMATIONCREDIT INFORMATION SYSTEMSCREDIT REGISTRIESCREDIT REGISTRYCREDIT REPORTINGCREDIT REPORTING SYSTEMSCREDIT RISKCREDIT SCORESCREDIT SCORINGCREDIT SUBSIDIESCREDITORCREDITOR RIGHTSCREDITORSCURRENCYCURRENT ACCOUNTSDEBTDEFAULT PROBABILITYDEPENDENTDEPOSITDEPOSITSDEVELOPING COUNTRIESDOMESTIC BANKSDUMMY VARIABLEECONOMIC ACTIVITYECONOMICSEMPLOYMENTENABLING ENVIRONMENTENABLING ENVIRONMENTSENTRY REQUIREMENTSEXCHANGE RATESEXPENDITURESFACTORINGFEMALE CLIENTSFINANCE CONSTRAINTSFINANCE CORPORATIONFINANCIAL DEVELOPMENTFINANCIAL INFRASTRUCTUREFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCING OBSTACLESFORECLOSUREFOREIGN BANKSGENDERGOOD CREDITGOVERNMENT INTERVENTIONGOVERNMENT OWNERSHIPGUARANTEE SCHEMEGUARANTEE SCHEMESHOUSINGHOUSING LOANSINDIVIDUAL BANKINDIVIDUAL BANKSINFORMATION ASYMMETRIESINSOLVENCYINSOLVENCY REGIMESINSTRUMENTINSURANCEINTEREST RATEINTEREST RATE CEILINGSINTEREST RATE CONTROLSINTEREST RATESINTEREST SUBSIDIESINTERNATIONAL BANKINTERNATIONAL BANKSINTERNATIONAL FINANCEINVESTMENT FINANCEINVESTMENT LOANSINVESTMENT PURPOSESISLAMIC FINANCELACK OF ACCESSLARGE BANKSLARGE FIRMSLEASED ASSETSLEGAL CONSTRAINTSLEGAL FRAMEWORKLEGAL RIGHTSLENDERSLENDING DECISIONLENDING DECISIONSLENDING TECHNIQUESLINE OF CREDITLIQUIDATIONLOANLOAN DECISIONLOAN OFFICERSLOAN PERFORMANCELOAN PORTFOLIOLOAN PORTFOLIOSLONG-TERM LENDINGMACROECONOMIC INSTABILITYMANDATESMARKET CONDITIONSMARKET SHAREMATURITYMOVABLE ASSETSMOVABLE COLLATERALNOTARIESNUMBER OF BANKSOUTREACHOUTSTANDING CREDITOWNERSHIP RIGHTSOWNERSHIP STRUCTURESPARTIAL CREDITPOOR CREDITPRIVATE BANKPRIVATE BANKSPRIVATE CREDITPRIVATE CREDIT BUREAUPRIVATE CREDIT BUREAUSPROFITABILITYPRUDENTIAL REGULATIONSPUBLIC BANKSPUBLIC CREDITPUBLIC REGISTRIESPUBLIC REGISTRYRATING SYSTEMSREAL ESTATERECOVERY RATEREGIONAL BANKSREGISTRY OFFICIALSRELATIONSHIP BANKINGRELATIONSHIP LENDINGREORGANIZATIONREPAYMENTREPOSSESSIONRESERVERESERVE REQUIREMENTSRESERVESRETURNSRISK MANAGEMENTRISK MANAGEMENT SYSTEMSSECONDARY MARKETSSHARE OF INVESTMENTSMALL BANKSSMALL BUSINESSSMALL ENTERPRISESTART-UPSTATE BANKSSTATISTICAL ANALYSISSTRENGTH OF CREDITOR RIGHTSSUBSIDIARIESSUPPLY CHAINSUPPLY CHAINSTAXTAX TREATMENTTRADE FINANCETRANSPARENCYTURNOVERUNIONWEAK ASSETWEAK COLLATERALWHOLESALE BANKSWORKING CAPITALWorld Bank10.1596/1813-9450-5607