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WOMEN, BUSINESS AND THE LAW 2022
credit (IFC 2017). Collateral constraints and social norms are major reasons for this gender credit gap. For example, due to gender bias by lenders, women-led enterprises in Vietnam have a 34 percent higher likelihood that their loans will be denied than men-led firms (Le and Stefańczyk 2018). However, increasing women’s control over finances by combining access to bank accounts with skills training can shift conservative social norms and increase women’s work (Field et al. 2021). The Entrepreneurship indicator measures restrictions on women’s legal capacity as well as laws prescribing equal access to credit. Many economies (104) still lack a legal provision that expressly prohibits gender-based discrimination in access to credit (table 1.10). Women can sign a contract in the same way as men in all but 2 of the 190 economies measured. Seven economies legally restrict women from registering a business in the same way as men. And in six economies, women cannot open a bank account in the same way as men. Gabon reformed two data points measured under this indicator. A reform of the civil code equalized access to bank accounts for women by abolishing the legal provision that a husband be notified when his wife opens a bank account. In addition, a reform of the penal code made access to finance easier for women by prohibiting sex discrimination in access to banking services. Egypt also made credit more accessible for women by prohibiting gender-based discrimination in financial services. On April 22, 2021, the Central Bank of Egypt issued a circular on “enhancing gender equality in all financial transactions, including loans and credit facilities.” It was enacted shortly after the president of Egypt directed the government to support programs on women’s access to loans and financial literacy. This effort to prohibit gender discrimination in access to credit through central bank regulation continues a regional trend captured by the Women, Business and the Law reports for 2020 (Saudi Arabia, United Arab Emirates) and 2021 (Bahrain, Jordan). Similarly, Sierra Leone’s central bank issued a directive in August 2021 mandating that financial services be provided without discrimination based on sex. However, the majority of economies prohibit discrimination in access to financial services through specific nondiscrimination or gender equality laws (figure 1.9). A statutory law usually takes longer to enact than a subsidiary legal instrument like a financial sector regulation, as it has to go through the full parliamentary legislative process. This period enables a wider variety of stakeholders to provide input, increasing transparency and safeguards for women’s interests. Whatever the regulatory approach, the nondiscrimination provision should be included in a binding legal document that is widely publicized to financial service providers and consumers alike. It should provide effective remedies for and monitoring of violations of the nondiscrimination principle.
TABLE 1.10
NUMBER OF ECONOMIES THAT HAVE NOT REMOVED BARRIERS TO WOMEN’S ENTREPRENEURSHIP
Question 1. Does the law prohibit discrimination in access to credit based on gender?
Number of economies with a “no” response 104
2. Can a woman sign a contract in the same way as a man?
2
3. Can a woman register a business in the same way as a man?
7
4. Can a woman open a bank account in the same way as a man?
6
Source: Women, Business and the Law database.
Number of economies with at least one “no” response
104
