Financial Markets

Financial infrastructure is the set of institutions that enable effective operation of financial intermediaries. This includes such elements as payment systems, credit information bureaus and collateral registries. More broadly, financial infrastructure encompasses the existing legal and regulatory framework for financial sector operations.

Collateral Registries: Secured lending is the most preferred form of lending in formal credit markets, and yet property valued about $9.3 trillion in developing countries is not translated to productive use and thus classified as “dead capital” because of non-existing or poorly functioning collateral laws and registries.

Credit Reporting: Credit bureaus constitute an important element of financial infrastructure that enable financial institutions to perform the essential act of granting credit. Research has shown that credit bureaus are critical to the expansion of credit for both individuals and small businesses, since access to credit information is needed when applying modern financial technologies to credit decisions for these market segments.

Securities Markets: Securities markets, particularly bond markets, are increasingly in demand by emerging market countries to finance key areas with high developmental impact, such as infrastructure, housing, and microfinance.

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