Credit Bureaus, Democracy and Financial Stability
Posted: 2 Jun 2022
Date Written: May 18, 2022
This study assess the impact that credit bureaus and credit registries can have on banking stability using data for 34 countries over the period 2004 – 2019 while considering the interfering effect of democracy. Various specifications are considered to check the stability of the credit bureau-banking stability relationship. Estimation outcomes show that credit bureaus and credit registries in democratic countries produce better quality of information and therefore produce more stable banking systems. Our findings also report the existence of a nonlinear relationship in the private and public credit bureaus and banking stability nexus with regard to democracy.
Keywords: Democracy, Credit Bureau, Z-score, Crisis
JEL Classification: D73, F63, G23, G01
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