TY  - BOOK
ED  - World Bank.
ED  - World Bank.
TI  - Mali Financial Sector Assessment Program: Legal and Judicial Aspects of the Credit Environment
T2  - Financial Sector Assessment Program
PY  - 2015///
CY  - Washington, D.C.
PB  - The World Bank
KW  - Bankruptcy and Resolution of Financial Distress
KW  - Common Law
KW  - Credit
KW  - Debt
KW  - Default
KW  - Equity
KW  - Finance
KW  - Finance and Financial Sector Development
KW  - Financial and Private Sector Development
KW  - Financial Crisis
KW  - Financial Institutions
KW  - Financial Law
KW  - Insolvency
KW  - Insurance
KW  - International Financial Standards and Systems
KW  - International Law
KW  - Land Management
KW  - Land Registry
KW  - Law and Development
KW  - Legal Aspects of Project Finance
KW  - Legal Framework
KW  - Loans
KW  - Mortgages
KW  - Ownership Rights
KW  - Trade Law
N2  - A country's legal and judicial environment can help or hinder access to credit. In addition to the banking law governing the organization of the sector, the operations of credit institutions are subject to several laws. Four components of Malian business law are particularly relevant in assessing the position of creditors, the law on secured transactions, the law on collective proceedings, the law on information-sharing related to debtors (sometimes called the credit reporting law), and the law on collection and enforcement proceedings. If creditors cannot have confidence in their legal environment, they will be inclined to lend only to persons they know well. In this regard, it is telling to note that in Mali, the 50 biggest clients account for 39.3 percent of the credit extended by banks (although this percentage has fallen in recent times). Furthermore, access to credit remains a major constraint in the Malian business world. Although the reasons are not confined solely to the legal sphere, it is important to point out that, according to the 2010 Enterprise Survey, Malian enterprises cited access to credit as the main constraint hampering the business environment (43.9 percent of enterprises). The same study showed that in the case of loans involving a security right, the value of the assets pledged stood at 201.4 percent of the amount borrowed, reflecting the lack of confidence by banks in their ability to actually enforce their rights. In addition, in view of the fact that 58 percent of loans require a pledged asset which, in most instances, takes the form of immovable property, persons who do not own such assets are, de facto, shut out of the system and unable to seek credit
UR  - http://elibrary.worldbank.org/doi/book/10.1596/24271
ER  -