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This study aims to assess whether or not the presence of credit bureaus is associated with more or fewer financing constraints while considering the interfering effect of corruption in a sample of 18 countries in Eastern Europe and the Middle East and North Africa (MENA) region during the period 2011-2014. We consider various financial constraint measures and corruption indices, and assess the stability of the relationship for different levels of economic development and corruption. The estimation outcomes suggest that countries with higher levels of corruption might produce less transparent and falsified information that would make access to sources of financing more difficult for firms. Our findings suggest that curbing corruption creates more efficient credit bureaus that, in turn, decrease financial constraints for firms. The subsample estimations confirm these findings and show that the higher and longer-term corruption in MENA countries than in Eastern European countries make credit bureaus' less effective, imposing more financial constraints. Our findings remain robust with different corruption indices and with the addition of new control variables such as firms' sales and size, government and exporting firms, and per-capita GDP, inflation, trade, population and human capital. 2022 Economic Research Forum. Scopus

Summary We analyse the dependence between defaults in peer-to-peer lending and credit bureaus. To achieve this, we propose a new flexible bivariate regression model that is suitable for binary imbalanced samples. We use different copula functions to model the dependence structure between defaults in the two credit markets. We implement the model in the R package BivGEV and we explore the empirical properties of the proposed fitting procedure by a Monte Carlo study. The application of this proposal to a comprehensive data set provided by Lending Club shows a significant level of dependence between the defaults in peer-to-peer and credit bureaus. Finally, we find that our model outperforms the bivariate probit and univariate logit models in predicting peer-to-peer default, in estimating the value at risk and the expected shortfall.

This study assesses the impact that credit bureaus can have on the occurrence of banking crises, using data for 32 countries over the period 2004-2016 while considering the interference effect of corruption. Different levels of income are considered in order to check for the stability of the relationship. We also test for the existence of a threshold effect driving the credit bureau-banking stability nexus. Estimation outcomes suggest that more credit bureaus are correlated with less banking instability. Moreover, estimation outcomes show that curbing corruption improves the quality of information on delinquent borrowers shared among these institutions and can thus enhance the soundness of the banking system. Our findings also report the existence of a nonlinear relationship in the private and public credit bureaus and banking stability nexus. 2022 Elsevier B.V. Scopus

Under the traditional and well-established conception, credit bureaus are understood as being little more than vessels storing customer data that has been furnished by specific suppliers, such as banks, intermediaries and, more generally, lenders. Accordingly, credit bureaus are deemed to play a ‘neutral’ role in the credit market. Hence, in Europe and the US, they are generally not responsible for any inaccuracies in the information they put into circulation, despite data quality being crucial for the proper functioning of the market and for a fair allocation of resources. This circumstance engenders, however, a conflict between the market interest in accurate data and the ‘endogenous’ for-profit interest of credit bureaus. More specifically, despite their performing an important activity in an oligopolistic environment, credit bureaus are presently allowed to pursue their for-profit interest without any substantial accountability as regards their ‘exogenous’ function of transmitting accurate data. This disequilibrium oftentimes results in under-performance and a low level of data quality. The analysis points out, also through a comparative analysis with the rules governing the US credit report system, how these circumstances in the credit market sector can imperil some pivotal objectives of the EU legal policy, which aims at ensuring equal levels of protection among citizens of Member States within a unique environment dependent on the cross-border exchange of information.

After a steady improvement in the fiscal position over the past decade, the standoff over clearance revenues has severely constrained the PA budget, leading to a significant expansion in expenditure arrears. Going forward, however, uncertainty about a resolution for the clearance revenue standoff will weigh on the economy. Over the last two decades, the Palestinian economy has been driven by large inflows of transfers as other sources of growth have been long-hindered by the ongoing Israeli restrictions on movement and access. Under a baseline scenario which assumes a continuation of the Israeli restrictions, persistence of the internal divide between the West Bank and Gaza and a decline in aid levels, the Palestinian economy is expected to slip into a recession in 2020 and 2021, even if additional, one-off transfers from clearance revenues are made. As financial buffers are depleted, the reduced revenues will require sizable cuts in public spending, which in turn would translate in reduced consumption and investment. The decline in growth implies a sizable decline in real per capita income and a rise in poverty. The Palestinian financial sector continues to face substantial risks against the backdrop of the fiscal crisis. The negative impact of the deepening fiscal crisis on the quality of loan portfolios across the banking sector has started to materialize as both non-performing loans and classified loans have been on an upward trajectory. With the severe liquidity shortage facing the PA, it has resorted to domestic banks to finance its needs raising the sector’s exposure to the PA for the first time in a number of years. Banks are also rescheduling outstanding loans held by PA employees who are receiving a reduced salary, compounding the destabilizing effect on the sector. However, the fact that the PA is simultaneously building up an asset in the form of tax revenues not received from the GoI ameliorates the situation as the increased exposure may be seen as a temporary trend. Another cause of concern is a possible disruption in Correspondent Banking Relationships (CBRs) between Palestinian banks and their Israeli counterparts due to de-risking by Israeli banks. The immunity and indemnity package given by the GoI to banks with CBRs are set to expire in May 2020 and February 2021, respectively, when a longer term and more sustainable intervention is expected to be in place. While resolving the fiscal crisis is an immediate priority there remains a broader reform agenda to improve the economy and Palestinian living standards.

In recent years, as more and more regulators have begun to assume the role of supervision and oversight over credit bureau(s), the World Bank Group has supported supervisors in understanding and carrying out their duties as it relates to this role. The WBG has supported the development of the credit bureau supervisory framework and the capacity to supervise these systems in several countries, including Morocco, the West African Monetary Union, Jordan, Bhutan, and the Bahamas. In addition, the WBG has provided light touch assistance on the supervision of credit bureaus in several Caribbean countries including Jamaica, Belize, the OECS, Guyana and Suriname. The WBG has facilitated study tours for regulators to markets where credit bureau supervision processes are established, thereby enabling the exchange of experiences and information between regulators. Such study tours include mock audits of the credit bureau in the host country, where possible. The mock audits provide the visiting regulators with an opportunity to mimic the processes that would be followed in case of an audit. This primer draws upon the WBG’s experience across various markets and intended to provide regulators, policymakers, practitioners and financial sector specialists with a general overview of what the licensing and supervision of a credit bureau entails.

In this paper, we use credit rating data from two large Swedish banks to elicit evidence on banks' loan monitoring ability. For these banks, our tests reveal that banks' internal credit ratings indeed include valuable private information from monitoring, as theory suggests. Banks' private information increases with the size of loans.However, our tests also reveal that publicly available information from a credit bureau is not efficiently impounded in the bank ratings: credit bureau ratings predict future movements in bank ratings and improve forecasts of both bankruptcy and loan default.The inefficiency of bank ratings is greater for smaller loans. We investigate possible explanations for these findings. Our results are consistent with bank loan officers placing too much weight on their private information, a form of overconfidence. Risk analyses of the loan portfolios in our data could thus be improved by combining the bank credit ratings with public credit bureau ratings.The methods we use represent a new basket of straightforward techniques that enable both financial institutions and regulators to assess the performance of credit rating systems.

An efficient system of credit information sharing contributes to solving the problem of information asymmetry on the credit and financial markets in general. The consequences of the global economic and financial crisis revealed an increasing demand for reliable information and data which could close the existing gap in their insufficiency, misuse or inadequate analytical value for the economic and financial policy makers. In that sense, more attention is directed to the usefulness of credit information sharing and the practical value of information and data contained in credit bureau reports for the purposes of achieving the overall economic policy goals. The fulfillment of that role depends mostly on the credit information sharing system and its characteristics, participants, and procedures. A credit bureau report in the best possible manner reflects all advantages and disadvantages of the established credit information exchange system in terms of its analytical value for the purposes of efficient macroeconomic and macrofinancial policies.

The purpose of this contribution is to evaluate the regulatory measures of the Czech central bank within the context of financial consumer protection aimed at slowing down the growth of the mortgage market by introducing new recommendations to restrict LTV limits and other indicators. Households are taking advantage of the availability of mortgage loans in an environment of economic growth and low unemployment. However, the growth in real estate prices raises fears of an increase in systemic risk caused by the developing gap between the growth of household indebtedness and the growth in real estate prices. The paper recapitulates the main factors of the growth rate of household indebtedness and the extent to which the adopted recommendations are effective.

Access to finance is an essential component of economic development and job creation. A host of studies have shown a positive correlation between financial development and economic growth. Access to finance is also critical for larger corporations and conglomerates, which, given their size, performance, and assets, typically meet funding requirements through capital markets and other sources. Credit reporting systems are less relevant for these businesses, as lenders to these large entities rely on a variety of other sources of information when making credit-related decisions. This Guide focuses therefore more on the credit needs of individuals and of the micro, small, and medium businesses that stand to benefit most from the development of credit reporting systems. The report is arranged as follows: Chapter 1 introduces key concepts in credit reporting; Chapter 2 introduces the different types of credit reporting service providers (CRSPs) that collect information on borrowers’ credit histories from creditors and available public sources; Chapter 3 covers the evolution of the credit reporting industry to today, including key trends now emerging and external trends affecting its development; Chapter 4 outlines the legal and regulatory framework options for credit reporting systems; Chapter 5 summarizes the World Bank Group’s fifteen plus years of experience in developing credit bureaus and credit registries around the world; Chapter 6 presents an overview of the value-added services typically offered by established credit bureaus through the repurposing of algorithms and data and the products and services offered by commercial credit reporting companies; and Chapter 7 rounds out the theoretical discussions and practical guidelines with nine case studies of recent developments in credit reporting spanning the globe.

Доказывается, что предварительный контроль не является обычным процессом реализации контрольного правомочия в гражданско-правовом отношении. Предлагается принцип осуществления предварительного контроля, согласно которому отсутствие инициативы управомоченного лица в осуществлении верификации исключает возможность ссылаться на явные недостатки в будущем, назвать «презумпцией надлежащего контроля». Отмечается, что набирающая темп информатизация общества обуславливает появление всё новых методов предварительной проверки соблюдения законных интересов участников гражданско-правовых отношений., It is proved that the preliminary control is not a normal process of implementation of the control power in civil law relation. It is proposed the principle of pre-control according to which lack of initiative of an authorized person in implementation of verification excludes the possibility to refer to the apparent shortcomings in the future is called «presumption of adequate control». It is noted that gaining momentum informatization of society causes the emergence of new preliminary verification methods of observance of legitimate interests of civil law relations participants., №2(51) (2017)

The aim of the thesis Credit registers and their usage is to evaluate the impact of credit registers usage in banking sector. The first part of the thesis focuses on description of credit registers, their creation and functioning at the level of the European Union. The second part describes and compares credit registers in the Czech Republic. The last part analyses the influence of negative information obtained from credit registers on the approval process and the use of registers when offering credit products to clients. In this part the positive influence of the use of credit registers in the banking sector is proved. The method of description and descriptive analysis is used in the thesis.

Systems of credit information exchange have strong influence upon development of the credit market, in particular, complete information about a borrower is provided, which allows more accurate assessment of the borrower’s capability to payback the credit, reduction of costs on search for information about the borrower and reduction of payment for the credit, increase of payment discipline of the borrower, reduction of the threat of over-crediting the borrower, demonopolisation of information in the credit market, which makes competition more perfect. There are both state and private systems of exchange of credit information in Ukraine, which started to operate recently and have not acquired significant development yet due to the fact that credit institutions do not realise yet advantages of such systems and absence of desire of major creditors to share this information. It is expedient for the state to initiate popularisation of participation of credit institutions in the bureau of credit history and also introduction of legislative initiatives with respect to mandatory nature of transfer of information of credit establishments into the credit bureaus.Системы обмена кредитной информацией имеют сильное влияние на развитие кредитного рынка, в частности, обеспечивается полная информация о заемщике, что позволяет более точно оценить его способность вернуть кредит, уменьшаются затраты на поиск информации о заемщике и тем самым удешевляется плата за кредит, повышается платежная дисциплина заемщика, снижается угроза перекредитования заемщика, демонополизируется информация на кредитном рынке, что делает конкуренцию более совершенной. В Украине существуют как государственные, так и частные системы обмена кредитной информацией, которые работают не так давно и не получили значительного развития из-за неосознания кредитными учреждениями преимуществ функционирования таких систем и нежелания крупных кредиторов делиться своей информацией. Со стороны государства целесообразно инициировать популяризацию участия кредитных учреждений в бюро ��редитных историй, а также внедрение законодательных инициатив относительно обязательности передачи информации кредитных учреждений в кредитные бюро.

South Asia emerged as the fastest growing region in the world in 2015, posting GDP growth of 7 percent. Weak oil and commodity prices, slowing capital flows and shrinking global trade contributed towards a deceleration of growth in most of the world's economies. South Asia - as a net importer of oil - was an anomaly, growing significantly on the back of higher private consumption and public investment. Higher remittances and reserve buffers throughout the region offset the fall in exports caused by the drop in global demand. The region is set to maintain real GDP growth above 7 percent over the next few years. However, the tailwinds are now fading - capital flows have declined and remittances are starting to feel the reality of low oil prices. Pakistan, while not growing as quickly as its neighbors, has continued its steady growth recovery in H1FY16. Strong growth in consumption, rising foreign exchange reserves, fast-growing workers' remittances and a lower import bill compensated for a significant fall in exports. Low oil prices generated a significant boost, driving a 9.1 percent fall in the import bill and reducing inflation significantly, in turn creating scope to reduce the policy rate. Private sector consumption, propelled by higher remittances and a loosened monetary policy, is expected to account for over half of FY16 GDP growth.

This paper investigates the effect of access to finance on job growth in 50,000 firms across 70 developing countries. Using the introduction of credit bureaus as an exogenous shock to the supply of credit, the paper finds that increased access to finance results in higher employment growth, especially among micro, small, and medium enterprises. The results are robust to using firm fixed effects, industry measures of external finance dependence, and propensity score matching in a complementary panel data set of more than four million firms in 29 developing countries. The findings have implications for policy interventions targeted to produce job growth in micro, small, and medium enterprises.

Low export prices and high production costs are contributing to a persistent deficit in the external accounts. Despite narrowing somewhat in recent years, Zimbabwe’s current account deficit remains much larger than those of comparable countries in the region, and exports currently amount to just over half of imports. A decline in global prices for gold, platinum and other mineral commodities, coupled with unresolved supply-side constraints, has reduced the value of mining exports. Zimbabwe has also benefited from lower oil prices, but rising import volumes largely offset the impact on import values. Remittances gradually increased during 2010-2015 and are estimated to have reached almost 7 percent of Gross National Income (GNI) in 2015. The domestic financial sector is slowly recovering from a post-dollarization credit boom and interest rates remain elevated. The Central Bank has stabilized the financial sector, a recent growth of broad money looks robust and bank lending has become market-driven. But still only blue-chip borrowers are able to access financing at competitive rates. The authorities are taking measures to update Zimbabwe’s credit infrastructure, strengthen oversight and restore the regulatory framework. Zimbabwe is experiencing a deflationary trend in response to these macroeconomic imbalances. The multicurrency regime, adopted in 2009, limits monetary policy instruments available to the authorities but also provides a level of fiscal and economic restraint. As competitive pressures increased, the consumer price index fell -2.5 percent, year-on-years, at end-2015. Declining prices should help to restore competitiveness over time, but should be accompanied by efforts to raise productivity at all levels of the economy.

Doing Business sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations. It measures and tracks changes in regulations affecting 11 areas in the life cycle of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and labor market regulation. Doing Business 2016 presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. This regional profile presents the Doing Business indicators for economies in Southern African Development Community (SADC). It also shows the regional average, the best performance globally for each indicator and data for the following comparator regions: East Asia and the Pacific (EAP), Economic Community of West African States (ECOWAS), European Union (EU), Middle East and North Africa (MENA) and Organization for the Harmonization of Business Law in Africa (OHADA). The data in this report are current as of June 1, 2015 (except for the paying taxes indicators, which cover the period January–December 2014).

Doing Business sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations. It measures and tracks changes in regulations affecting 11 areas in the life cycle of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and labor market regulation. Doing Business 2016 presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business.This regional profile presents the Doing Business indicators for economies in The g7 . It also shows the regional average, the best performance globally for each indicator and data for the following comparator regions. The data in this report are current as of June 1, 2015 (except for the paying taxes indicators, which cover the period January–December 2014).

Doing Business sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations. It measures and tracks changes in regulations affecting 11 areas in the life cycle of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and labor market regulation. Doing Business 2016 presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. This regional profile presents the Doing Business indicators for economies in European Union (EU). It also shows the regional average, the best performance globally for each indicator and data for the following comparator regions: East Asia and the Pacific (EAP), Europe and Central Asia (ECA), Middle East and North Africa (MENA), Latin America and OECD High Income.. The data in this report are current as of June 1, 2015 (except for the paying taxes indicators, which cover the period January–December 2014).

Doing Business sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations. It measures and tracks changes in regulations affecting 11 areas in the life cycle of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and labor market regulation. Doing Business 2016 presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. This regional profile presents the Doing Business indicators for economies in Arab World. It also shows the regional average, the best performance globally for each indicator and data for the following comparator regions: Common Market for Eastern and Southern Africa (COMESA), East Asia and the Pacific (EAP), Europe and Central Asia (ECA), Latin America and OECD High Income.. The data in this report are current as of June 1, 2015 (except for the paying taxes indicators, which cover the period January–December 2014).

Doing Business sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations. It measures and tracks changes in regulations affecting 11 areas in the life cycle of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and labor market regulation. Doing Business 2016 presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. This regional profile presents the Doing Business indicators for economies in OECD High Income. It also shows the regional average, the best performance globally for each indicator and data for the following comparator regions: European Union (EU), East Asia and the Pacific (EAP), Europe and Central Asia (ECA), South Asia (SA) and Latin America.. The data in this report are current as of June 1, 2015 (except for the paying taxes indicators, which cover the period January–December 2014).

Doing Business sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations. It measures and tracks changes in regulations affecting 11 areas in the life cycle of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and labor market regulation. Doing Business 2016 presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. This regional profile presents the Doing Business indicators for economies in Landlocked Economies. It also shows the regional average, the best performance globally for each indicator and data for the following comparator regions. The data in this report are current as of June 1, 2015 (except for the paying taxes indicators, which cover the period January–December 2014).