Article ID Journal Published Year Pages File Type
963956 Journal of International Money and Finance 2013 21 Pages PDF
Abstract

Credit reporting systems are an important ingredient for financial markets. These systems are based upon the unique identification of borrowers, which is enabled if a compulsory national identification system exists in a country. We present evidence derived from difference-in-difference analyses on the impact of credit reporting and identification systems on financial intermediation in 172 countries between 2000 and 2008. Our results suggest that the introduction of a mandatory identification system has a positive effect on financial intermediation (bank credit to deposits, net interest margins) and financial access (private credit to GDP), especially in countries where there is also a credit reporting system.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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