The Impact of Credit Information Sharing Reforms on Firm Financing?

Aug 31, 2014 | M.S. Martinez Peria, S. Singh | The World Bank
This paper analyses the impact of introducing credit information-sharing systems on firms’ access to finance. The analysis uses multi-year, firm-level surveys from 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 pronounces the greater the coverage of the credit bureau and the scope and accessibility of the credit information-sharing scheme.