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Credit information sharing and the shift in bank lending towards households
Author(s) -
Bahadir Berrak,
Valev Neven
Publication year - 2021
Publication title -
international journal of finance and economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 39
eISSN - 1099-1158
pISSN - 1076-9307
DOI - 10.1002/ijfe.1776
Subject(s) - instrumental variable , economics , variable (mathematics) , sample (material) , control variable , bank credit , information sharing , debt , estimation , monetary economics , control (management) , private information retrieval , financial system , business , econometrics , finance , mathematical analysis , chemistry , statistics , mathematics , management , chromatography , political science , law
The disproportionate increase of bank lending to households relative to businesses is a central trend in the financial sector of many countries. In this paper, we provide evidence that credit information sharing has strongly contributed to this trend. Specifically, using a sample of 25 European countries, we show that credit information sharing is associated with a significant tilt in private bank lending towards household debt. That result is robust to various estimation techniques and control variable sets, as well as to instrumental variable estimations.