Institutional arrangements, credit market development and loan repayment in Chile
نویسندگان
چکیده
In this paper, we study the effect of legal reforms and institutional changes on credit market development and the low level of unpaid debt in the Chilean banking sector. Using time series data on yearly basis (1960-1997), we conclude that both information sharing and deep financial market liberalization during the seventies are positively related to the credit market development. Moreover, using monthly data we find that information sharing is very important to explain the steady decrease in the level of arrears in the credit market during the nineties. Looking at the time series, we also report less dependence of unpaid loans with respect to the business cycle of the Chilean economy.
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