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Information Sharing and Financial Sector Development in Africa

Author

Listed:
  • Vanessa Tchamyou

    (Yaoundé/Cameroun)

  • Simplice Asongu

    (Yaoundé/Cameroun)

Abstract

This study investigates the effect information sharing has on financial sector development in 53 African countries for the period 2004-2011. Information sharing is measured with private credit bureaus and public credit registries. Hitherto unexplored dimensions of financial sector development are employed, namely: financial sector dynamics of formalization, informalization and non-formalization. The empirical evidence is based on Ordinary Least Squares (OLS) and Generalised Method of Moments (GMM). The following findings are established. Information sharing bureaus increase (reduce) formal (informal/non-formal) financial sector development. In order to ensure that information sharing bureaus improve (decrease) formal (informal/non-formal) financial development, public credit registries should have between 45.45 and 50 percent coverage while private credit bureaus should have at least 26.25 percent coverage.

Suggested Citation

  • Vanessa Tchamyou & Simplice Asongu, 2016. "Information Sharing and Financial Sector Development in Africa," Working Papers of the African Governance and Development Institute. 16/023, African Governance and Development Institute..
    • Handle: RePEc:agd:wpaper:16/023
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    More about this item

    Keywords

    Information sharing; Banking ; Africa;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G29 - Financial Economics - - Financial Institutions and Services - - - Other
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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