Collateral registry assessment (Mexico)

The Inter-American Development Bank commissioned Econlex Corp. to undertake a study of the legal underpinnings of access to finance in Mexico with the end objective of developing a plan to improve national access to finance.

We approached this project by studying the current state and legislation surrounding the secured transactions framework, credit bureaus and credit reporting systems, insolvency laws and bankruptcy procedures. In this process we were able to identify many flaws in the flow of information and identified were the room for improvement was for reducing credit default risk and lowering transaction costs to borrowers as well as lenders.

We presented a final report that outlined the obstacles to reform, highlighted lessons from best practices for implementation, and proposed specific recommendations for the improvement of access to credit after carefully studying: the country’s recent economic trends in asset-based lending, the regional economic rationale for reform, the estimated costs of the current system, and the Mexican credit bureau and asset registry systems.