engleski

The Importance of Credit Bureaus For Banking Systems and Credit Activity

The most recent literature highly stresses the importance of credit bureaus being an institutional arrangement for dealing with information asymmetries inherent to banking system. Information sharing trough credit bureaus improves the pool of borrowers and decreases default rates. Moreover, in developing countries the availability of information provided by credit bureaus can effectively induce changes in banks’ lending policies, shifting from a collateral-based lending policy to an information-based one. However, although all the models predict that information sharing (either in form of public or private credit bureaus) reduces default rates, the prediction concerning its effect on lending and interest rates is less clear-cut. Therefor, we use statistical tools in order to estimate weather the existence of credit bureaus might have statistically significant influence on lending activity and interest rates in sample of countries that include CEE countries.

credit bureaus; information sharing; banking; credit; interest rate

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