Expanding Access to Finance : Good Practices and Policies for Micro, Small, and Medium Enterprises
This book on micro, small, and medium enterprise (MSME) finance is intended primarily for government policy makers. It presents a policy framework whereby governments can support increased access by MSME to financial services based on empirical evi...
| Main Authors: | , , , , , |
|---|---|
| Language: | English en_US |
| Published: |
Washington, DC : World Bank
2012
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2007/05/13881825/expanding-access-finance-good-practices-policies-micro-small-medium-enterprises http://hdl.handle.net/10986/6621 |
| Summary: | This book on micro, small, and medium
enterprise (MSME) finance is intended primarily for
government policy makers. It presents a policy framework
whereby governments can support increased access by MSME to
financial services based on empirical evidence and
practices. MSME complain that lack of access to finance
constrains their growth and competitiveness. Indeed,
financial sector policies often work against the ability of
commercial financial institutions to serve MSME, albeit
often unintentionally. In many countries, lack of
competition in the banking sector limits pressure on banks
to reach out to MSME client segments. High risk and high
transaction costs-real or perceived-associated with bank
lending to MSME likewise constrain access. Often,
supervisory and capital adequacy requirements penalize banks
for lending to enterprises that lack traditional collateral.
Attempts by governments to address these constraints and
offset the inequalities in financial sector policy generally
have not achieved the desired results. This book lays out a
market-based policy framework for governments that focuses
on delivery of financial services to MSME on commercial
terms. The framework guides governments in focusing scarce
resources on developing an inclusive financial sector
policy; building sound financial institutions; and investing
in a supportive information infrastructure, such as credit
bureaus and accounting standards. Examples from around the
world illustrate how such a strategy has helped build more
inclusive financial systems for all. |
|---|