Akseli, Orkun --- "International Harmonisation of Credit and Security Laws: The Way Forward" [2012] ELECD 372; in Andenas, Mads; Andersen, Baasch Camilla (eds), "Theory and Practice of Harmonisation" (Edward Elgar Publishing, 2012)

Book Title: Theory and Practice of Harmonisation

Editor(s): Andenas, Mads; Andersen, Baasch Camilla

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781849800013

Section: Chapter 28

Section Title: International Harmonisation of Credit and Security Laws: The Way Forward

Author(s): Akseli, Orkun

Number of pages: 21

Extract:

28. International harmonisation of credit
and security laws: the way forward
Orkun Akseli*

I. INTRODUCTION
The law of credit and security is at the core of commercial law. It has been
traditionally regulated by domestic rules and interwoven throughout the law
of property, contracts and corporate finance where the capital may be raised
through borrowing.1 However, with increasing market interdependency as a
result of globalisation of financial markets, there is a commercial necessity
in harmonising credit and security law at the international2 level. The recent
financial crisis clearly demonstrates that globalisation of financial markets must
be accompanied by globalisation of the law of credit and security. Harmonisa-
tion of credit and security laws could substantially assist in reducing the cost
of credit by creating certainty in cross-border financing transactions. Financing
techniques such as raising finance against company assets and by assignment
of receivables are important and their regulation varies under different jurisdic-
tions which limit access to low cost credit. Facilitated access to low cost credit
is said to drive economic growth, according to studies conducted by the World
Bank.3 There is a correlation between the facilitation of credit and lowering the


* Senior Lecturer in Commercial Law, Durham University Law School, UK.
1
For a similar statement see Dahan, F (2000), `Secured Transactions Law in West-
ern Advanced Economies: Exposing Myths', Law in Transition 37, 39.
2
In this chapter international harmonisation is used to express the idea of inter-
national or global harmonisation under the auspices ...