The World Bank Group’s (WBG) Secured Transactions and Asset Based Lending (ST/ABL) Team, a unit under the WBG Financial Inclusion, Infrastructure & Access Unit, has recently released a new Knowledge Guide titled, ‘Secured Transactions, Collateral Registries and Movable Asset-Based Financing’.
The main objective of this Knowledge Guide is to provide guidance to government officials, financial institutions and other development practitioners on the objectives and implementation of secured transactions reforms, as well as the factors that affect their implementation.
The Knowledge Guide considers the experiences learned in various STABL reform projects implemented not only by the WBG, but also by other organizations, especially the European Bank for Reconstruction and Development (EBRD). It also summarizes and examines a number of recent developments. First, on the legislative side, it references the provisions of the United Nations Commission on International Trade Law (UNCITRAL) instruments, especially the 2016 Model Law. Second, significant space has been dedicated to regulatory aspects, particularly those relating to prudential regulation and their intersection with security rights in movable assets, including a discussion on the intersection of creditors’ security rights and insolvency law and practice, such as with the automatic stay and priority of the distribution of assets. Finally, a detailed description of various credit products that translate the legal provisions into action has been included.
A copy of the Knowledge Guide is available here.
ST/ABL is the World Bank Group’s Secured Transactions and Asset Based Lending Team.