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Public Credit Registries as a Tool for Bank Regulation and SupervisionThis paper is about the importance of
 the information in Public Credit Registries (PCRs) for
 supporting and improving banking sector regulation and
 supervision, particularly in the light of the new approach
 embodied in Basel III. Against the backdrop of the financial
 crisis and the existence of information data gaps, the
 importance of complete, accurate and timely credit
 information in the financial system is evident. Both in
 normal times and during crises, authorities need a device
 that allows them to look at the universe of credits in a
 detailed and readily way. And more importantly, they need to
 develop tools that exploit as much as possible the
 information therein contained. PCR databases contain
 individual credit information on borrowers and their credits
 which makes it possible to implement advanced techniques
 that measure banks' credit risk exposure. It allows
 optimizing the prudential regulation ensuring that
 provisioning and capital requirements are properly
 calibrated to cover expected and unexpected losses
 respectively. It also permits validating banks'
 internal rating systems, performing stress tests and
 informing macroprudential surveillance. In this respect, it
 is envisioned that the existence of a PCR will be a key
 factor to enhance the supervision and regulation of the
 financial system. Furthermore, the extent, accuracy and
 availability of the information collected by the authorities
 will determine the usefulness of the PCR as part of their
 toolkit to monitor the potential vulnerabilities not only on
 a microprudential level, but also on a macroprudential one.
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Financial Sector Policy Note : Financing Small and Medium-Sized Businesses in Burkina FasoAs in other Sub-Saharan African
 countries, small and medium-sized enterprises (SMEs)
 represent the vast majority of firms operating in the
 private sector in Burkina Faso. Private sector-led growth is
 a major element of Burkina Faso's poverty reduction
 strategy, la strategie de croissance accelere et le
 developpement durable. Unfortunately, many characteristics
 of Burkina Faso's business environment, and of
 businesses themselves, make private sector-led growth a
 challenge. This financial sector policy note focuses on the
 market for credit and closely related financial services,
 how private banks are providing these services to SMEs, and
 recommendations that address problems they are having. This
 requires understanding the behavior of banks with respect to
 SME lending, particularly investment lending and related
 financial products like leasing, guarantees, microcredit,
 and subsidized credit funds. This policy note consists of a
 study and survey of commercial banks and two non-bank
 financial institutions (NBFIs) (Burkina Bail and Societe
 Financiere de Garantie Interbancaire du Burkina (SOFIGIB)
 focusing on lending to SMEs. It focuses on the supply side
 of the market. The survey and accompanying interviews took
 place during the summer of 2013. Twelve private banks and
 five NBFIs were asked to participate in the study and
 survey. The study references two additional surveys focused
 on SMEs: (1) the 2009 World Bank enterprise survey, and (2)
 the 2012 survey of SMEs commissioned by the ministry of
 industry, trade, and artisans. The study consists of
 observations and analysis of survey data to provide input to
 policies for encouraging lending to SMEs and increasing the
 provision of other financial services. This report is
 structured as follows: executive summary; purpose and
 structure of policy note; macroeconomic context and the
 banking sector section provides a description of the
 situation in which Burkina Faso finds itself. Demand for SME
 finance section presents recent studies focused on the
 demand for credit by SMEs. Supply of SME finance section
 presents the results of the survey organized around the keys
 issues facing the provision of credit to SMEs. Enabling
 environment for financing SMEs section discusses salient
 characteristics of the business, legal, and regulatory
 environment that effect SME finance; recommendations; and conclusions.
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Jamaica SME FinanceAlmost all formal small and medium
 enterprises (SMEs) in Jamaica have access to checking or
 saving accounts, but the financial sector is scarcely used
 to finance their investments. The lack of funding for the
 SME sector, or its high cost, has a negative impact on
 entrepreneurship and business profitability and stability
 through the business life-cycle, having a particularly
 negative effect on employment. In addition, the supply of
 formal nonbank sources of finance is limited, especially for
 micro-entrepreneurs, with credit unions providing mostly
 consumer finance and an underdeveloped microfinance sector.
 The authorities aim to develop a micro-credit act to make it
 mandatory for multilateral investment funds (MIFs) to
 register, and to create a regulatory authority to oversee
 microfinance institution (MFIs). The authorities have taken
 significant initiatives to enhance the legal and regulatory
 environment and financial infrastructure, but further
 efforts are needed. The authorities have also put in place
 public programs for micro, small, and medium sized
 enterprise (MSME) finance, however they lack sufficient
 coordination, and the partial credit guarantee scheme needs
 to be revamped. It also operates a partial credit guarantee
 scheme, which is not being utilized by lenders. Thus, its
 design should be reviewed and revamped to ensure adequate
 incentives for lenders to use it and its sustainability.