2017年-世界发展银行全球_The_Credit_Crunch___How_the_Use_of_Movable_Collateral_and_Credit_Reporting_Can_Help_Finance_Inclusive_Economic_Growth_in_Nigeria_20页_589kb

Summary of "The Credit Crunch" Report

Core Content

This report, commissioned by the Central Bank of Nigeria (CBN) and the International Finance Corporation (IFC), explores the challenges faced by micro-, small-, and medium-sized enterprises (MSMEs) in accessing formal financial services in Nigeria. It highlights the role of collateral and credit reporting systems in improving financial inclusion and supporting inclusive economic growth.

Main Findings

Access to Finance

• Only 31% of MSMEs surveyed had obtained a loan from a bank or microfinance institution.
• Personal savings (63%) and reinvested profits (29%) are the most common sources of business financing for MSMEs.
• Informal financing (friends and family) is also widely used, with 12% of MSMEs borrowing from these sources.
• Loan applications from MSMEs are mostly successful (87%), suggesting that the lack of access is more due to perceived barriers than actual rejection.

Collateral Requirements

• Fixed assets (land, buildings) are the preferred type of collateral by financial institutions, used in 98% of loan applications.
• Only 52% of MSMEs who accessed formal loans used land or houses as collateral.
• Movable assets (machinery, vehicles, inventory) are preferred by MSMEs for financing, but are rarely accepted by banks due to valuation and recovery challenges.
• Collateral registry is seen as a potential solution to enable the use of movable assets in loans, with 91% of MSMEs and employees believing it is relevant to Nigeria and 69% believing it could work.

Credit Reporting System

• Only 15% of MSMEs and 11% of employees are aware of the credit reporting system.
• 100% of financial institutions are aware of the system, which is perceived as reliable and straightforward.
• The system could support reputational collateral, enabling those without fixed assets to access credit based on credit history.
• 82% of MSMEs and 79% of employees believe the credit reporting system can work in Nigeria, though 58% of financial institutions share this view.

Key Points

Business Environment Outlook

• 79% of MSMEs believe the business environment will improve over the next five years.
• Factors contributing to this optimism include economic diversification, increased access to finance, and government support.

Challenges Identified

• Lack of collateral is the main barrier to formal credit access (82% of financial institutions cite this).
• High interest rates and lengthy documentation processes also hinder access.
• Informal financing is preferred by many due to its low or no interest and ease of access.

Potential Impact of New Financial Infrastructure

• The National Collateral Registry and modern credit reporting system aim to:
  • Enable the use of moveable and reputational collateral.
  • Improve access to formal financing for MSMEs.
  • Support inclusive economic growth by expanding the lending portfolio of financial institutions.

Survey Methodology

• Conducted in Lagos, Rivers, Anambra, Abuja, Kano, and Bauchi.
• Surveyed 840 MSME owners, 480 employees, and 180 financial institution representatives.
• Duration: Six weeks in August and September 2015.
• Methods: Combined quantitative (structured questionnaire) and qualitative (focus groups, in-depth interviews) approaches.

Conclusions

• MSMEs in Nigeria are optimistic about the future of their business environment.
• Access to finance remains limited due to collateral and documentation challenges.
• Collateral is a key determinant in the ability of MSMEs to access formal credit.
• Credit reporting systems could play a significant role in enhancing financial inclusion.
• Awareness of the credit reporting system is low among MSMEs and employees, which may prevent them from benefiting from it.
• The collateral registry is seen as a viable solution to address the collateral gap and support the growth of MSMEs.

Recommendations

• Increase awareness and education on collateral registry and credit reporting systems.
• Improve collateral valuation and recovery mechanisms to accommodate movable assets.
• Enhance financial inclusion by making credit reporting more accessible and user-friendly.
• Support policy development and institutional capacity building to ensure the successful implementation of the collateral registry.