The Impact of Credit Information Sharing Reforms on Firm Financing?
This paper analyzes the impact of introducing credit information-sharing systems on firms' access to finance. The analysis uses multi-year, firm-level surveys for 63 countries covering more than 75,000 firms over the period 2002-13. The result...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank Group, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2014/08/20141619/impact-credit-information-sharing-reforms-firm-financing http://hdl.handle.net/10986/20348 |
| Summary: | This paper analyzes the impact of
introducing credit information-sharing systems on
firms' access to finance. The analysis uses multi-year,
firm-level surveys for 63 countries covering more than
75,000 firms over the period 2002-13. The results reveal
that credit bureau reforms, but not credit registry reforms,
have a significant and robust effect on firm financing.
After the introduction of a credit bureau, the likelihood
that a firm has access to finance increases, interest rates
drop, maturity lengthens, and the share of working capital
financed by banks increases. The effects of credit bureau
reforms are more pronounced the greater the coverage of the
credit bureau and the scope and accessibility of the credit
information-sharing scheme. Credit bureau reforms also have
a greater impact on firms' access to finance in
countries where contract enforcement is weaker. Finally,
there is some evidence that the effects of credit bureau
reform are more pronounced for smaller, less experienced,
and more opaque firms. |
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