Boosting Economic Stability: How Loan Security in Emerging Economies Mitigates Risk
The article discusses how banks secure loans in emerging economies by using collateral. This means borrowers have to provide something valuable as a guarantee to repay the loan. If borrowers can't pay back, the bank can take the collateral. This reduces the risk for banks when lending money. The article looks at the challenges of securing loans in these markets and how to properly document the process.