The Emergence of Information Sharing in Credit Markets
نویسندگان
چکیده
منابع مشابه
The Emergence of Information Sharing in Credit Markets
We examine how asymmetric information and competition in the credit market affect voluntary information sharing between lenders. We study an experimental credit market in which information sharing can help lenders to distinguish good borrowers from bad ones, because borrowers may exogenously switch locations. Lenders, however, are also engaged in spatial competition, and lose market power by sh...
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Information sharing about borrowers’ characteristics and their indebtedness can have important effects on credit markets activity. First, it improves the banks’ knowledge of applicants’ characteristics and permits a more accurate prediction of their repayment probabilities. Second, it reduces the informational rents that banks could otherwise extract from their customers. Third, it can operate ...
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We study the problem of loan enforcement in an informal credit market with limited information flow. Specifically, credit histories of borrowers are not available, raising the possibility of endemic default. We show that if there is some minimum proportion of “natural defaulters” in the population, then there exists an equilibrium characterized by certain simple behavior rules for lenders and b...
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Until 1994, when inflation was brought down from the sky-high levels that had prevailed since the mid seventies, the financial system in Brazil was almost entirely geared towards maximizing float income, which answered for close to half of the overall earnings of commercial banks. In that environment, being efficient in processing transactions, such as the payment of bills and checks, was param...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2008
ISSN: 1556-5068
DOI: 10.2139/ssrn.922661