The Impact of Positive Information Sharing on Banks’ Lending to Households
Research Seminar by Ibolya Schindele.
Date and Time: 08 May, 2023, Monday, 11:40-12:40 (Budapest time)
Venue: Corvinus Main Building, Ground Floor, Room E.III
Language: English
Abstract: What is the impact of positive information sharing on households’ access to credit? Exploiting a nation-wide introduction of mandatory information sharing between banks on borrowers` current exposures, we differentiate between borrowers who apply to new banks and those who reapply to banks with already established credit contracts, as well as between borrowers with and without past negative information. We find an overall increase in credit access, in application success and credit amount, for all borrower groups. In addition, we show that while credit access increases, default rates decrease, hence “positive” information sharing may boost aggregate welfare.
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