Information Asymmetry, Financialisation and Financial Access
International Finance.21(3), pp. 297-315 (2018). DOI: 10.1111/infi.12136 (July, 2018).
22 Pages Posted: 29 May 2018 Last revised: 21 Dec 2018
Date Written: May 18, 2018
This study investigates whether information sharing channels that are meant to reduce information asymmetry have led to an increase in financial access. The study employs a Generalised Method of Moments technique using data from 53 African countries during the period from 2004-2011 to examine this linkage. Information sharing channels are theoretically designed to promote the formal financial sector and discourage the informal financial sector. The study uses two information sharing channels: private credit bureaus and public credit registries. The study found that both information sharing channels have a positive and significant impact on financial access. The study also found that public credit registries complement the formal financial sector to promote financial access. The policy implications are discussed.
Keywords: Information Asymmetry; Financialisation; Financial Access; Africa
JEL Classification: G20; G29; L96; O40; O55
Suggested Citation: Suggested Citation