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Collateralized Borrowing : Insights from The World Bank Enterprise Surveys

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Listed:
  • Fan,Yuting
  • Nguyen,Ha Minh
  • Qian,Rong
  • Nguyen,Ha Minh
  • Qian,Rong

Abstract

Using the World Bank Enterprise Surveys, we investigate the prevalence and correlates of collateralized borrowing in 131 countries between 2005-2017. Overall, 77 percent of loans require collateral, and the median loan-to-collateral value is 60 percent. Small firms and loans from non-bank financial institutions are less often associated with collateral. When collateral is pledged, the type of collateral assets is strongly correlated with the loan-to-value ratio.

Suggested Citation

  • Fan,Yuting & Nguyen,Ha Minh & Qian,Rong & Nguyen,Ha Minh & Qian,Rong, 2012. "Collateralized Borrowing : Insights from The World Bank Enterprise Surveys," Policy Research Working Paper Series 6001, The World Bank.
    • Handle: RePEc:wbk:wbrwps:6001
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    File URL: http://documents.worldbank.org/curated/en/233121468181774356/pdf/WPS6001.pdf
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    1. repec:zbw:bofitp:2014_004 is not listed on IDEAS
    2. Ana Fostel & John Geanakoplos & Gregory Phelan, 2015. "Global Collateral: How Financial Innovation Drives Capital Flows and Increases Financial Instability," Department of Economics Working Papers 2015-12, Department of Economics, Williams College, revised Feb 2017.
    3. Fungáčová, Zuzana & Kochanova, Anna & Weill, Laurent, 2015. "Does Money Buy Credit? Firm-Level Evidence on Bribery and Bank Debt," World Development, Elsevier, vol. 68(C), pages 308-322.
    4. Kislat, Carmen & Menkhoff, Lukas & Neuberger, Doris, 2013. "The use of collateral in formal and informal lending," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79765, Verein für Socialpolitik / German Economic Association.
    5. Love, Inessa & Peria, Maria Soledad Martinez & Singh, Sandeep, 2013. "Collateral registries for movable assets : does their introduction spur firms'access to bank finance ?," Policy Research Working Paper Series 6477, The World Bank.
    6. Fungáčová, Zuzana & Kochanova, Anna & Weill, Laurent, 2015. "Does Money Buy Credit? Firm-Level Evidence on Bribery and Bank Debt," World Development, Elsevier, vol. 68(C), pages 308-322.

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