Personal Financial Planner

Personal Financial Planner

Resale markets for repossessed assets are often fragmented, illiquid and poorly functioning in emerging markets. In many markets, SMEs and brokers with limited access to finance dominate the asset resale market which leads to high transactions costs and low liquidity in these markets. Not only can this lead to poor price realization in these asset resale markets. But more importantly it can have economy wide effects on access to finance, since banks use assets as collateral. If the price of this collateral at the point of resale is depressed, banks will not be willing to ...