Information Sharing and Financial Sector Development in Africa

Journal of African Business, 18(1), pp. 24-49 (2017).

35 Pages Posted: 5 Jul 2016 Last revised: 9 Dec 2016

See all articles by Vanessa S. Tchamyou

Vanessa S. Tchamyou

African Governance and Development Institute

Simplice Asongu

African Governance and Development Institute

Date Written: January 4, 2016

Abstract

This study investigates the effect information sharing has on financial sector development in 53 African countries for the period 2004-2011. Information sharing is measured with private credit bureaus and public credit registries. Hitherto unexplored dimensions of financial sector development are employed, namely: financial sector dynamics of formalization, informalization and non-formalization. The empirical evidence is based on Ordinary Least Squares (OLS) and Generalised Method of Moments (GMM). The following findings are established. Information sharing bureaus increase (reduce) formal (informal/non-formal) financial sector development. In order to ensure that information sharing bureaus improve (decrease) formal (informal/non-formal) financial development, public credit registries should have between 45.45 and 50 percent coverage while private credit bureaus should have at least 26.25 percent coverage.

Keywords: Information sharing; Banking; Africa

JEL Classification: G20; G29; L96; O40; O55

Suggested Citation

S. Tchamyou, Vanessa and Asongu, Simplice, Information Sharing and Financial Sector Development in Africa (January 4, 2016). Journal of African Business, 18(1), pp. 24-49 (2017).. Available at SSRN: https://ssrn.com/abstract=2804384 or http://dx.doi.org/10.2139/ssrn.2804384

Vanessa S. Tchamyou

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

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