Economic information and finance : more information means more credit, fewer bad loans, and less corruption
AbstractThis paper builds on recent work that shows how financial sector outcomes are affected by the provision of information by financial and other entities. In particular, it shows that an indicator of economic transparency is positively related to higher levels of private credit and a lower share of nonperforming loans even after accounting for factors commonly believed to influence financial sector development in cross-country empirical estimation. Timely access to economic data allows investors to make better decisions on investments and to better monitor banks'financial health. Greater economic transparency raises accountability and lowers corruption in bank lending.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 4250.
Date of creation: 01 Jun 2007
Date of revision:
Banks&Banking Reform; Financial Intermediation; Economic Theory&Research; Insurance&Risk Mitigation; Investment and Investment Climate;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-06-18 (All new papers)
- NEP-BAN-2007-06-18 (Banking)
- NEP-DEV-2007-06-18 (Development)
- NEP-IAS-2007-06-18 (Insurance Economics)
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