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Financial Distress and Information Sharing: Evidences from the Italian Credit Register

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  • Lucia Gibilaro

    (Department of Economics, Politics and Modern Languages, University LUMSA, 00133 Roma, Italy)

  • Gianluca Mattarocci

    (Department of Management and Law, University of Rome Tor Vergata, 00133 Roma, Italy)

Abstract

Credit risk exposure evaluation is driven by the quality of the information available on the debtors and customers with multiple lending exposures, which could be evaluated differently by different lenders. The existence of an information asymmetry among lenders can be mitigated using private information sharing instruments, such as the credit registers. The paper analyses the effect of information disclosure through credit registers and evaluates the impact of revising the amount of credit offered to customers served also by other lenders. The results show that the information available for each lender is different and after the disclosure of past due or a default status declared by a financial intermediary, all the other lenders react to the new information available.

Suggested Citation

  • Lucia Gibilaro & Gianluca Mattarocci, 2021. "Financial Distress and Information Sharing: Evidences from the Italian Credit Register," Risks, MDPI, vol. 9(5), pages 1-12, May.
    • Handle: RePEc:gam:jrisks:v:9:y:2021:i:5:p:94-:d:553046
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    References listed on IDEAS

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    Cited by:

    1. Mogens Steffensen, 2022. "Special Issue “Risks: Feature Papers 2021”," Risks, MDPI, vol. 10(3), pages 1-2, March.

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