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Collateral Registries for Movable Assets: Does Their Introduction Spur Firms' Access to Bank Finance?

Author

Listed:
  • Inessa Love

    (University of Hawaii at Manoa)

  • Maria Soledad Martinez Peria

    (World Bank)

  • Sandeep Singh

    (World Bank)

Abstract
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 seven 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 evidence that this effect is larger among smaller and younger firms.

Suggested Citation

  • Inessa Love & Maria Soledad Martinez Peria & Sandeep Singh, 2014. "Collateral Registries for Movable Assets: Does Their Introduction Spur Firms' Access to Bank Finance?," Working Papers 201422, University of Hawaii at Manoa, Department of Economics.
    • Handle: RePEc:hai:wpaper:201422
    as

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    File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_14-22.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

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    2. Eduardo Borensztein & Lei Sandy Ye, 2021. "Corporate debt overhang and investment in emerging economies: Firm‐level evidence," International Finance, Wiley Blackwell, vol. 24(1), pages 18-39, April.
    3. World Bank & International Finance Corporation, 2013. "Doing Business 2014 : Understanding Regulations for Small and Medium-Size Enterprises," World Bank Publications - Books, The World Bank Group, number 16204.
    4. Thorsten Beck & Meghana Ayyagari, 2015. "Financial Inclusion in Asia: An Overview," Working Papers id:7393, eSocialSciences.
    5. Berg, Gunhild & Fuchs, Michael, 2013. "Bank financing of SMEs in five Sub-Saharan African countries : the role of competition, innovation, and the government," Policy Research Working Paper Series 6563, The World Bank.
    6. MORUTAN Radu Alin & GAVRILUT Darie & BADULESCU Daniel, 2020. "The Influence Of Foreign Banks’ Entry On The Main Macroeconomic Indicators In The (Emerging) Host Economies. Case Study: Romania, Hungary And Bulgaria," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 64-78, July.
    7. Epstein, Brendan & Finkelstein Shapiro, Alan, 2019. "Financial development, unemployment volatility, and sectoral dynamics," Journal of Economic Dynamics and Control, Elsevier, vol. 99(C), pages 82-102.
    8. World Bank, 2018. "Doing Business 2018," World Bank Publications - Books, The World Bank Group, number 28608.
    9. Bas Louman & Erica Di Girolami & Seth Shames & Luis Gomes Primo & Vincent Gitz & Sara J. Scherr & Alexandre Meybeck & Michael Brady, 2022. "Access to Landscape Finance for Small-Scale Producers and Local Communities: A Literature Review," Land, MDPI, vol. 11(9), pages 1-26, August.
    10. Charles, Don & McLean, Sheldon, 2020. "A preliminary review of policy responses to enhance SME access to trade financing in the Caribbean," Studies and Perspectives – ECLAC Subregional Headquarters for The Caribbean 45101, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).

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    More about this item

    Keywords

    movable collateral; access to bank finance;

    JEL classification:

    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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