The more the better? Information sharing and credit risk
The new article by Irina Iakimenko, CInSt senior research fellow Maria Semenova and CInSt research assistant Eugenii Zimin has been just published in the Journal of International Financial Markets, Institutions and Money.
Authors focus on the connection between information shared by credit bureaus / credit registries and borrower credit risk. Some highlights:• Relationship between credit information disclosure and credit risk is reverse U-shaped.
• Credit risk is always lower under more transparent regime if creditor rights are well-protected.
• Credit risk becomes lower after lower disclosure thresholds if institutions and financial markets are better developed.
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