Regulatory options to curb debt stress (الروسية)

Increased debt stress can result in social unrest and serious political repercussions. The recent debt-related fall-out in India captured international headlines and highlighted the extent to which debt stress can serve as a political rallying point. ...  انظر المزيد + Increased debt stress can result in social unrest and serious political repercussions. The recent debt-related fall-out in India captured international headlines and highlighted the extent to which debt stress can serve as a political rallying point. It led, for instance, to political support for repayment boycotts and to extreme regulatory interventions by one state government, and it undermined micro lenders' support from governments, donors, and social investors. This paper refers frequently to both 'microcredit' and 'consumer credit.' As a rough generalization, microcredit usually involves small loans to non-salaried workers who operate informal 'microenterprises.' In contrast, most consumer credit (e.g., credit cards or retailer finance) goes to salaried employees of formal sector enterprises. However, these general descriptions have many exceptions, and in practice there may be considerable overlap among the markets served by the different types of lenders. This focus note argues that it is preferable to implement appropriate monitoring mechanisms and regulatory interventions at an early stage in credit market development, to detect potential debt stress and prevent reckless lending practices, thereby avoiding risks to financial markets, consumers, and the regulator's credibility. The paper aims to offer practical guidance to regulators3 and policy makers who face such challenges.  رؤية أقل ـ

الوثيقة متوفرة بـ : العربية, الانكليزية, الإسبانية