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

Lucia Gibilaro and Gianluca Mattarocci
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Lucia Gibilaro: Department of Economics, Politics and Modern Languages, University LUMSA, 00133 Roma, Italy

Risks, 2021, vol. 9, issue 5, 1-12

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.

Keywords: financial distress; credit registers; risk exposures (search for similar items in EconPapers)
JEL-codes: C G0 G1 G2 G3 K2 M2 M4 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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