Improving Credit Information, Bank Regulation, and Supervision: On the Role and Design of Public Credit Registries

37 Pages Posted: 20 Apr 2016

See all articles by Andrew Powell

Andrew Powell

Universidad Torcuato Di Tella - School of Business; Inter-American Development Bank (IDB); Harvard University - Center for International Development (CID)

Nataliya Mylenko

World Bank - Financial and Private Sector Development

Margaret Miller

World Bank

Giovanni Majnoni

World Bank

Date Written: November 2, 2004

Abstract

Powell, Mylenko, Miller, and Majnoni analyze how data in public credit registries can be used both to strengthen bank supervision and to improve the quality of credit analysis by financial institutions. Empirical tests using public credit registry (PCR) data were performed in collaboration with the central banks in Argentina, Brazil, and Mexico. The results of the empirical tests confirm the value of the data for credit risk evaluation and provide insights regarding its use in supervision, including in calculations of credit risk for capital and provisioning requirements, or as a check on a bank's internal ratings for the Basel II's internal rating-based approach. The authors also define a set of critical design parameters and use the results to comment on appropriate public registry design. Finally, they discuss the relationship between the different objectives of a PCR and how they influence the registry's design.

This paper - a product of the Finance Cluster, Latin America and the Caribbean Region - is part of a larger effort in the region to analyze the effects of bank capital regulation.

Suggested Citation

Powell, Andrew P. and Mylenko, Nataliya and Miller, Margaret and Majnoni, Giovanni, Improving Credit Information, Bank Regulation, and Supervision: On the Role and Design of Public Credit Registries (November 2, 2004). World Bank Policy Research Working Paper No. 3443. Available at SSRN: https://ssrn.com/abstract=625321

Andrew P. Powell (Contact Author)

Universidad Torcuato Di Tella - School of Business ( email )

Saenz Valiente 1010
C1428BIJ Buenos Aires
Argentina
+5411 4787-9349 (Phone)
+5411 4783-3220 (Fax)

Inter-American Development Bank (IDB) ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

Harvard University - Center for International Development (CID) ( email )

One Eliot Street Building
79 JFK Street
Cambridge, MA 02138
United States

Nataliya Mylenko

World Bank - Financial and Private Sector Development ( email )

1818 H Street NW
Washington, DC 20433
United States

Margaret Miller

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Giovanni Majnoni

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States
202-458-7542 (Phone)
202-522-2106 (Fax)

HOME PAGE: http://www.worldbank.org/research/interest/intrstweb.htm

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