4.4. Financial Infrastructure

The financial marketplace is supported by the financial sector infrastructure, which enables efficient payments and transactions. Key elements within the financial sector infrastructure include:

• Payment systems that can strengthen the financial sector by reducing the time, risk and cost of transferring funds. Modern systems can facilitate digital payments, including mobile money, which enable more people to pay bills and transfer money electronically.
• Credit reporting bureaus and rating agencies which efficiently provide objective information on the creditworthiness of bonds, stocks and borrowers (individuals or businesses), thereby reducing the time and cost associated with due diligence and determining whether to extend the financing.
• Collateral registries which provide a means for finance providers to record a security interest in collateral pledged by a borrower. A number of countries have recently implemented “movable property” registries which allow banks to take collateral other than land and buildings (immovable property), and thus opens up the range of borrowers able to provide security and thus access lending to include those who do not own land or buildings.