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Credit information sharing and banking crises: An empirical investigation

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  • Büyükkarabacak, Berrak
  • Valev, Neven
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    Abstract

    We study the effect of credit information sharing on the likelihood of banking crises using a comprehensive cross-country dataset for the period from 1975 to 2006. The empirical analysis shows that credit information sharing reduces the likelihood of banking crises and it does more so in low income countries. The effect is statistically and economically significant, and applies to both public registries and private bureaus. Furthermore, we show that credit information sharing reduces the impact of rapid credit growth on banking crises. Specifically, rapid credit growth is less likely to lead to a banking crisis in countries with credit information sharing.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0164070412000390
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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Macroeconomics.

    Volume (Year): 34 (2012)
    Issue (Month): 3 ()
    Pages: 788-800

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    Handle: RePEc:eee:jmacro:v:34:y:2012:i:3:p:788-800

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    Web page: http://www.elsevier.com/locate/inca/622617

    Related research

    Keywords: Banking crises; Credit information sharing; Credit growth;

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    References

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    Cited by:
    1. World Bank & International Finance Corporation, 2013. "Doing Business 2014 : Understanding Regulations for Small and Medium-Size Enterprises," World Bank Publications, The World Bank, number 16204, October.
    2. Stolbov, Mikhail, 2013. "Anatomy of international banking crises at the onset of the Great Recession," MPRA Paper 51236, University Library of Munich, Germany.

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