Credit bureaus, corruption and banking stability

Mohamed Sami Ben Ali

Economic Systems, 2022, vol. 46, issue 3

Abstract: This study assesses the impact that credit bureaus can have on the occurrence of banking crises, using data for 32 countries over the period 2004–2016 while considering the interference effect of corruption. Different levels of income are considered in order to check for the stability of the relationship. We also test for the existence of a threshold effect driving the credit bureau-banking stability nexus. Estimation outcomes suggest that more credit bureaus are correlated with less banking instability. Moreover, estimation outcomes show that curbing corruption improves the quality of information on delinquent borrowers shared among these institutions and can thus enhance the soundness of the banking system. Our findings also report the existence of a nonlinear relationship in the private and public credit bureaus and banking stability nexus.

Keywords: Corruption; Credit bureau; Z-score; Crisis (search for similar items in EconPapers)
JEL-codes: D73 F63 G01 G23 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecosys:v:46:y:2022:i:3:s0939362522000516

DOI: 10.1016/j.ecosys.2022.100989

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