Economic Information and Finance : More Information Means More Credit, Fewer Bad Loans, and Less Corruption
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 high...
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| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2007/06/7711498/economic-information-finance-more-information-means-more-credit-fewer-bad-loans-less-corruption http://hdl.handle.net/10986/7398 |
| Summary: | 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. |
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