CEU Electronic Theses and Dissertations, 2012
| Author | Cordas, Stjepko |
|---|---|
| Title | The Impact of Secured Transactions Reform on Corruption in Lending: Incorporating Pillars of UCC Article 9 to Bosnia and Herzegovina |
| Summary | Torn by war, Bosnia and Herzegovina (BiH) struggles with economic development because of prevalence of corruption in all aspects of society. One aspect of corruption that has not been well documented, but is evident, is private corruption in lending. For example, banks are receiving bribes by businesses in order to receive loans. This is just one of many ways they engage in private corruption and other have been documented as well. Empirical evidence suggests that, inter alia, lack of effective secured transactions law is major reason for corruption in lending. Analysis of current BiH laws has revealed a serious notion of discouraging the use of movables as devices for securing loans. On the other hand, the United States Uniform Commercial Code Article 9 (UCC 9) is considered the most developed secured transactions act in the world. Therefore, the main purpose of this research is to estimate what effect would incorporation of elements of UCC 9 have on private corruption in lending in BiH. Effect was estimated by using game theory. Namely, series of sequential move games were played and then analyzed. Results of these games indicate that incorporation of elements from UCC 9 would have detrimental effect on private corruption in BiH. However, while these results are encouraging, the possible reform should be approached with care, otherwise results could be counterproductive. |
| Supervisor | Baniak, Andzrej; Tajti, Tibor |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2012/cordas_stjepko.pdf |
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