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...

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Main Authors:	Martinez Peria, Maria Soledad, Singh, Sandeep
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank Group, Washington, DC 2014
Subjects:	ACCESS TO BANK ACCESS TO CREDIT ACCESS TO FINANCE ACCESSIBILITY ACCOUNTS RECEIVABLE ADVERSE SELECTION ASSET FINANCING ASYMMETRIC INFORMATION BALANCE SHEET BANK FINANCING BANK LENDING BANK POLICY BANK SUPERVISION BANKRUPTCIES BANKS BINDING CONSTRAINT BORROWER CASH FLOW CENTRAL BANKS CHECKS COLLATERAL COLLECTION SERVICES COMMERCIAL LENDERS CONTRACT ENFORCEMENT CONTRACT LAWS COST OF CREDIT COUNTRY RISK CREDIT BUREAU CREDIT BUREAUS CREDIT CONSTRAINT CREDIT CONSTRAINTS CREDIT FACILITIES CREDIT INFORMATION CREDIT INFORMATION SYSTEMS CREDIT MARKET CREDIT MARKETS CREDIT QUALITY CREDIT RATIONING CREDIT REGISTRIES CREDIT REGISTRY CREDIT REPORTING CREDIT REPORTING SYSTEMS CREDIT SCORES CREDIT WORTHINESS DEBT DEFAULT INFORMATION DEFAULT RATES DEFAULTS DEMAND FOR CREDIT DEPENDENT DEPOSIT DEVELOPING COUNTRIES DOMESTIC CREDIT DUMMY VARIABLE DUMMY VARIABLES ECONOMIC DEVELOPMENT ECONOMICS EQUITY MARKETS EXCLUSION EXPORTER EXPORTERS EXTERNAL FINANCE FINANCIAL CONSTRAINT FINANCIAL CONSTRAINTS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL REFORM FINANCIAL REFORMS FINANCIAL SECTOR DEVELOPMENT FINANCIAL STATEMENT FINANCIAL STUDIES FINANCIAL SYSTEM FINANCING CONSTRAINT FINANCING CONSTRAINTS FIRM FINANCING FIXED ASSET FIXED ASSETS INDEBTEDNESS INFLATION INFLATION RATE INFORMATION REQUIREMENTS INFORMATION SHARING INFORMATIONAL ASYMMETRIES INFORMATIONAL ASYMMETRY INSTITUTIONAL ENVIRONMENT INSTRUMENT INTANGIBLE INTANGIBLE ASSETS INTEREST RATE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL STANDARD INVENTORY INVESTMENT DECISIONS LARGE FIRMS LATE PAYMENTS LEGAL SYSTEM LENDER LENDERS LENDING DECISIONS LEVELS OF ACCESS LEVERAGE LINE OF CREDIT LOAN LOAN AMOUNTS LOAN MATURITIES LOAN MATURITY LOAN PERFORMANCE MARKET EQUILIBRIUM MARKET INFORMATION MATURITY MEDIAN FIRM MICROFINANCE MONETARY FUND MONETARY VALUE MORAL HAZARD OUTSTANDING LOAN OUTSTANDING LOAN AMOUNTS OVERDRAFT OVERDRAFT FACILITY OVERDRAFT PROTECTION PAYMENT HISTORY PERSONAL ASSETS POLITICAL ECONOMY PRIVATE CREDIT PRIVATE CREDIT BUREAU PUBLIC CREDIT PUBLIC INFORMATION REGISTRY DATA REGISTRY REFORM REGISTRY REFORMS REPAYMENTS RISK PREMIUMS SMALL LOANS TOTAL DEBT TRANSITION COUNTRIES TRANSPARENCY UNION VALUE OF COLLATERAL WORKING CAPITAL
Online Access:	http://documents.worldbank.org/curated/en/2014/08/20141619/impact-credit-information-sharing-reforms-firm-financing http://hdl.handle.net/10986/20348

id	okr-10986-20348
recordtype	oai_dc
spelling	okr-10986-203482021-04-23T14:03:55Z The Impact of Credit Information Sharing Reforms on Firm Financing? Martinez Peria, Maria Soledad Singh, Sandeep ACCESS TO BANK ACCESS TO CREDIT ACCESS TO FINANCE ACCESSIBILITY ACCOUNTS RECEIVABLE ADVERSE SELECTION ASSET FINANCING ASYMMETRIC INFORMATION BALANCE SHEET BANK FINANCING BANK LENDING BANK POLICY BANK SUPERVISION BANKRUPTCIES BANKS BINDING CONSTRAINT BORROWER CASH FLOW CENTRAL BANKS CHECKS COLLATERAL COLLECTION SERVICES COMMERCIAL LENDERS CONTRACT ENFORCEMENT CONTRACT LAWS COST OF CREDIT COUNTRY RISK CREDIT BUREAU CREDIT BUREAUS CREDIT CONSTRAINT CREDIT CONSTRAINTS CREDIT FACILITIES CREDIT INFORMATION CREDIT INFORMATION SYSTEMS CREDIT MARKET CREDIT MARKETS CREDIT QUALITY CREDIT RATIONING CREDIT REGISTRIES CREDIT REGISTRY CREDIT REPORTING CREDIT REPORTING SYSTEMS CREDIT SCORES CREDIT WORTHINESS DEBT DEFAULT INFORMATION DEFAULT RATES DEFAULTS DEMAND FOR CREDIT DEPENDENT DEPOSIT DEVELOPING COUNTRIES DOMESTIC CREDIT DUMMY VARIABLE DUMMY VARIABLES ECONOMIC DEVELOPMENT ECONOMICS EQUITY MARKETS EXCLUSION EXPORTER EXPORTERS EXTERNAL FINANCE FINANCIAL CONSTRAINT FINANCIAL CONSTRAINTS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL REFORM FINANCIAL REFORMS FINANCIAL SECTOR DEVELOPMENT FINANCIAL STATEMENT FINANCIAL STUDIES FINANCIAL SYSTEM FINANCING CONSTRAINT FINANCING CONSTRAINTS FIRM FINANCING FIXED ASSET FIXED ASSETS INDEBTEDNESS INFLATION INFLATION RATE INFORMATION REQUIREMENTS INFORMATION SHARING INFORMATIONAL ASYMMETRIES INFORMATIONAL ASYMMETRY INSTITUTIONAL ENVIRONMENT INSTRUMENT INTANGIBLE INTANGIBLE ASSETS INTEREST RATE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL STANDARD INVENTORY INVESTMENT DECISIONS LARGE FIRMS LATE PAYMENTS LEGAL SYSTEM LENDER LENDERS LENDING DECISIONS LEVELS OF ACCESS LEVERAGE LINE OF CREDIT LOAN LOAN AMOUNTS LOAN MATURITIES LOAN MATURITY LOAN PERFORMANCE MARKET EQUILIBRIUM MARKET INFORMATION MATURITY MEDIAN FIRM MICROFINANCE MONETARY FUND MONETARY VALUE MORAL HAZARD OUTSTANDING LOAN OUTSTANDING LOAN AMOUNTS OVERDRAFT OVERDRAFT FACILITY OVERDRAFT PROTECTION PAYMENT HISTORY PERSONAL ASSETS POLITICAL ECONOMY PRIVATE CREDIT PRIVATE CREDIT BUREAU PUBLIC CREDIT PUBLIC INFORMATION REGISTRY DATA REGISTRY REFORM REGISTRY REFORMS REPAYMENTS RISK PREMIUMS SMALL LOANS TOTAL DEBT TRANSITION COUNTRIES TRANSPARENCY UNION VALUE OF COLLATERAL WORKING CAPITAL 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. 2014-10-02T21:07:23Z 2014-10-02T21:07:23Z 2014-08 http://documents.worldbank.org/curated/en/2014/08/20141619/impact-credit-information-sharing-reforms-firm-financing http://hdl.handle.net/10986/20348 English en_US Policy Research Working Paper;No. 7013 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Group, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ACCESS TO BANK ACCESS TO CREDIT ACCESS TO FINANCE ACCESSIBILITY ACCOUNTS RECEIVABLE ADVERSE SELECTION ASSET FINANCING ASYMMETRIC INFORMATION BALANCE SHEET BANK FINANCING BANK LENDING BANK POLICY BANK SUPERVISION BANKRUPTCIES BANKS BINDING CONSTRAINT BORROWER CASH FLOW CENTRAL BANKS CHECKS COLLATERAL COLLECTION SERVICES COMMERCIAL LENDERS CONTRACT ENFORCEMENT CONTRACT LAWS COST OF CREDIT COUNTRY RISK CREDIT BUREAU CREDIT BUREAUS CREDIT CONSTRAINT CREDIT CONSTRAINTS CREDIT FACILITIES CREDIT INFORMATION CREDIT INFORMATION SYSTEMS CREDIT MARKET CREDIT MARKETS CREDIT QUALITY CREDIT RATIONING CREDIT REGISTRIES CREDIT REGISTRY CREDIT REPORTING CREDIT REPORTING SYSTEMS CREDIT SCORES CREDIT WORTHINESS DEBT DEFAULT INFORMATION DEFAULT RATES DEFAULTS DEMAND FOR CREDIT DEPENDENT DEPOSIT DEVELOPING COUNTRIES DOMESTIC CREDIT DUMMY VARIABLE DUMMY VARIABLES ECONOMIC DEVELOPMENT ECONOMICS EQUITY MARKETS EXCLUSION EXPORTER EXPORTERS EXTERNAL FINANCE FINANCIAL CONSTRAINT FINANCIAL CONSTRAINTS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL REFORM FINANCIAL REFORMS FINANCIAL SECTOR DEVELOPMENT FINANCIAL STATEMENT FINANCIAL STUDIES FINANCIAL SYSTEM FINANCING CONSTRAINT FINANCING CONSTRAINTS FIRM FINANCING FIXED ASSET FIXED ASSETS INDEBTEDNESS INFLATION INFLATION RATE INFORMATION REQUIREMENTS INFORMATION SHARING INFORMATIONAL ASYMMETRIES INFORMATIONAL ASYMMETRY INSTITUTIONAL ENVIRONMENT INSTRUMENT INTANGIBLE INTANGIBLE ASSETS INTEREST RATE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL STANDARD INVENTORY INVESTMENT DECISIONS LARGE FIRMS LATE PAYMENTS LEGAL SYSTEM LENDER LENDERS LENDING DECISIONS LEVELS OF ACCESS LEVERAGE LINE OF CREDIT LOAN LOAN AMOUNTS LOAN MATURITIES LOAN MATURITY LOAN PERFORMANCE MARKET EQUILIBRIUM MARKET INFORMATION MATURITY MEDIAN FIRM MICROFINANCE MONETARY FUND MONETARY VALUE MORAL HAZARD OUTSTANDING LOAN OUTSTANDING LOAN AMOUNTS OVERDRAFT OVERDRAFT FACILITY OVERDRAFT PROTECTION PAYMENT HISTORY PERSONAL ASSETS POLITICAL ECONOMY PRIVATE CREDIT PRIVATE CREDIT BUREAU PUBLIC CREDIT PUBLIC INFORMATION REGISTRY DATA REGISTRY REFORM REGISTRY REFORMS REPAYMENTS RISK PREMIUMS SMALL LOANS TOTAL DEBT TRANSITION COUNTRIES TRANSPARENCY UNION VALUE OF COLLATERAL WORKING CAPITAL
spellingShingle	ACCESS TO BANK ACCESS TO CREDIT ACCESS TO FINANCE ACCESSIBILITY ACCOUNTS RECEIVABLE ADVERSE SELECTION ASSET FINANCING ASYMMETRIC INFORMATION BALANCE SHEET BANK FINANCING BANK LENDING BANK POLICY BANK SUPERVISION BANKRUPTCIES BANKS BINDING CONSTRAINT BORROWER CASH FLOW CENTRAL BANKS CHECKS COLLATERAL COLLECTION SERVICES COMMERCIAL LENDERS CONTRACT ENFORCEMENT CONTRACT LAWS COST OF CREDIT COUNTRY RISK CREDIT BUREAU CREDIT BUREAUS CREDIT CONSTRAINT CREDIT CONSTRAINTS CREDIT FACILITIES CREDIT INFORMATION CREDIT INFORMATION SYSTEMS CREDIT MARKET CREDIT MARKETS CREDIT QUALITY CREDIT RATIONING CREDIT REGISTRIES CREDIT REGISTRY CREDIT REPORTING CREDIT REPORTING SYSTEMS CREDIT SCORES CREDIT WORTHINESS DEBT DEFAULT INFORMATION DEFAULT RATES DEFAULTS DEMAND FOR CREDIT DEPENDENT DEPOSIT DEVELOPING COUNTRIES DOMESTIC CREDIT DUMMY VARIABLE DUMMY VARIABLES ECONOMIC DEVELOPMENT ECONOMICS EQUITY MARKETS EXCLUSION EXPORTER EXPORTERS EXTERNAL FINANCE FINANCIAL CONSTRAINT FINANCIAL CONSTRAINTS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL REFORM FINANCIAL REFORMS FINANCIAL SECTOR DEVELOPMENT FINANCIAL STATEMENT FINANCIAL STUDIES FINANCIAL SYSTEM FINANCING CONSTRAINT FINANCING CONSTRAINTS FIRM FINANCING FIXED ASSET FIXED ASSETS INDEBTEDNESS INFLATION INFLATION RATE INFORMATION REQUIREMENTS INFORMATION SHARING INFORMATIONAL ASYMMETRIES INFORMATIONAL ASYMMETRY INSTITUTIONAL ENVIRONMENT INSTRUMENT INTANGIBLE INTANGIBLE ASSETS INTEREST RATE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL STANDARD INVENTORY INVESTMENT DECISIONS LARGE FIRMS LATE PAYMENTS LEGAL SYSTEM LENDER LENDERS LENDING DECISIONS LEVELS OF ACCESS LEVERAGE LINE OF CREDIT LOAN LOAN AMOUNTS LOAN MATURITIES LOAN MATURITY LOAN PERFORMANCE MARKET EQUILIBRIUM MARKET INFORMATION MATURITY MEDIAN FIRM MICROFINANCE MONETARY FUND MONETARY VALUE MORAL HAZARD OUTSTANDING LOAN OUTSTANDING LOAN AMOUNTS OVERDRAFT OVERDRAFT FACILITY OVERDRAFT PROTECTION PAYMENT HISTORY PERSONAL ASSETS POLITICAL ECONOMY PRIVATE CREDIT PRIVATE CREDIT BUREAU PUBLIC CREDIT PUBLIC INFORMATION REGISTRY DATA REGISTRY REFORM REGISTRY REFORMS REPAYMENTS RISK PREMIUMS SMALL LOANS TOTAL DEBT TRANSITION COUNTRIES TRANSPARENCY UNION VALUE OF COLLATERAL WORKING CAPITAL Martinez Peria, Maria Soledad Singh, Sandeep The Impact of Credit Information Sharing Reforms on Firm Financing?
relation	Policy Research Working Paper;No. 7013
description	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.
format	Publications & Research :: Policy Research Working Paper
author	Martinez Peria, Maria Soledad Singh, Sandeep
author_facet	Martinez Peria, Maria Soledad Singh, Sandeep
author_sort	Martinez Peria, Maria Soledad
title	The Impact of Credit Information Sharing Reforms on Firm Financing?
title_short	The Impact of Credit Information Sharing Reforms on Firm Financing?
title_full	The Impact of Credit Information Sharing Reforms on Firm Financing?
title_fullStr	The Impact of Credit Information Sharing Reforms on Firm Financing?
title_full_unstemmed	The Impact of Credit Information Sharing Reforms on Firm Financing?
title_sort	impact of credit information sharing reforms on firm financing?
publisher	World Bank Group, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2014/08/20141619/impact-credit-information-sharing-reforms-firm-financing http://hdl.handle.net/10986/20348
_version_	1764445097483567104

The Impact of Credit Information Sharing Reforms on Firm Financing?

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