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Secured Lending Baseline Survey

Frequently Asked Questions

1. The survey is referring to loans secured by movable and immovable assets. What is the definition of movable and immovable assets?

Immovable assets refer to land and building. Movable assets include tangible and intangible assets, present and future. Examples would be vehicles, machinery, equipment, inventory, accounts receivables, consumer goods, negotiable instruments, agricultural products like livestock and crops, intellectual property rights, bank accounts, insurance policies, etc..... Basically it's any asset other than land and buildings which would fall under the immovable asset category.

2. Should the corporate and consumer loans be included?

Both corporate and consumer loans should be included.

3. Please clarify if the survey requires banks to report only loans or total advances.

The survey covers only loans to firms and entrepreneurs (both legal entities and individuals for both consumer and business purposes).

4. Please clarify the difference between enforcement “through the courts but outside insolvency proceedings” and “through insolvency proceedings”.

In case of enforcement of claims through courts “outside of insolvency proceedings”, the debtor is not insolvent and the creditor files a lawsuit through the courts to repossess the asset and enforce its claims. In the case of “insolvency proceedings”, the debtor went into bankruptcy and the creditor tries to enforce its claims as part of these proceedings together with other creditors.

5. In the survey, are credit card facilities considered as part of consumer loans?

Technically, credit cards can be considered as consumer loans, however, for the purposes of the survey, those should be included.

6. Are loans granted against fixed deposits considered consumer loans secured by movable assets?

Yes, Loans granted against fixed deposits are considered secured by movable assets.

7. Should loans secured by personal and/or corporate guarantees be included?

Loans secured by guarantees, whether personal or corporate, should not be included.

8. Should loans, partly secured, be included? How?

Whenever there is a security, even if partial, the loan should qualify as secured.

9. Please provide a definition for micro, small and medium enterprises (MSMEs) and large firms?

In the case where there is no national definition for MSMEs adopted at the country level, the following definition would apply:

MSMEs can be defined as indicated in the table below:

|Indicator |Micro Enterprise |Small Enterprise |Medium Enterprise |

|Employees | ................
................

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