Security Finance In Egypt

The basis of the financial markets is this straightforward equation- businesses demand credit, and banks financing need collateral to ensure payment. In that sense, banks typically accept immovable properties without hesitation while they become wary of movable assets. Because the majority of their assets are transportable, Small and Medium Enterprises often have limited access to loans.

Actually, lenders trust more to recover their debts when immovable assets are pledged; as they are normally registered as well as any rights thereon. As a result, the danger of information asymmetry is significantly reduced when compared to movable collaterals that did not have a register previous to the new rule. Additionally, the enforcement of rights on immovable assets is much simpler than it is on movable ones.