Credit Information Sharing and its Impact on Access to Bank Credit across Income Bracket Groupings

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Author	Baah Aye Kusi
ISSN	2307-2466
On Pages	138-145
Volume No.	4
Issue No.	4
Issue Date	October 01, 2020
Publishing Date	October 01, 2020
Keywords	Information sharing, credit referencing bureaus, information asymmetry, access to bank credit, income brackets

Abstract

This study provides a global evidence of how credit information sharing impacts access to bank credit across the income bracket groupings by the World Bank which captures all countries. Employing OLS robust standard errors regression model, the study sources data from World Development Indicators covering period�s between 2000 and 2012. The study finds that access to bank credit varies significantly across the five income bracket groupings with high income brackets having easier access to bank credit compared to their low income brackets counterparts. The results further indicate that information sharing helps improves access to bank credit across all the five income bracket groupings. The results in addition reports that information sharing and gross domestic savings were significantly and positively related to access to bank credit while gross capital formation, inflation and non-performing loans were negatively and significantly related to access to bank credit. These findings are consistent with theoretical and earlier empirical findings.

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