Economic information and finance: more information means more credit, fewer bad loans, and less corruption

Roumeen Islam

No 4250, Policy Research Working Paper Series from The World Bank

Abstract: This paper builds on recent work that shows how financial sector outcomes are affected by the provision of information by financial and other entities. In particular, it shows that an indicator of economic transparency is positively related to higher levels of private credit and a lower share of nonperforming loans even after accounting for factors commonly believed to influence financial sector development in cross-country empirical estimation. Timely access to economic data allows investors to make better decisions on investments and to better monitor banks'financial health. Greater economic transparency raises accountability and lowers corruption in bank lending.

Keywords: Banks&Banking Reform; Financial Intermediation; Economic Theory&Research; Insurance&Risk Mitigation; Investment and Investment Climate (search for similar items in EconPapers)
Date: 2007-06-01
New Economics Papers: this item is included in nep-ban, nep-dev and nep-ias
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www-wds.worldbank.org/external/default/WDSC ... ered/PDF/wps4250.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:4250

Access Statistics for this paper

More papers in Policy Research Working Paper Series from The World Bank 1818 H Street, N.W., Washington, DC 20433. Contact information at EDIRC.
Bibliographic data for series maintained by Roula I. Yazigi (ryazigi@worldbank.org).