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Credit information sharing is seen as a critical policy tool to overcome market frictions and inefficiencies. Examinging the change in the reporting threshold of Brazil’s public credit registry in 2012, this column documents an expansion in access to credit for newly included borrowers. While the additional lending comes primarily from new private bank-firm relationships, incumbent lenders react by changing the loan contracts offered to newly included borrowers, offering lower interest rates and relaxing collateral requirements but also shortening loan maturities. Risky borrowers show a decline (increase) in loan default with incumbent (new) lenders. The policy change also translates into higher employment. ....
MACAU DAILY TIMES 澳門每日時報Finance sector earnings rise up to 10% macaudailytimes.com.mo - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from macaudailytimes.com.mo Daily Mail and Mail on Sunday newspapers.