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Credit bureaus, corruption and banking stability

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  • Ben Ali, Mohamed Sami

Abstract

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.

Suggested Citation

  • Ben Ali, Mohamed Sami, 2022. "Credit bureaus, corruption and banking stability," Economic Systems, Elsevier, vol. 46(3).
    • Handle: RePEc:eee:ecosys:v:46:y:2022:i:3:s0939362522000516
    DOI: 10.1016/j.ecosys.2022.100989
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    Cited by:

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    2. Mohamed Sami Ben Ali & Sami Ben Mim, 2023. "Democracy and Banking Stability: Is the Relationship U-Shaped?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(4), pages 4426-4448, December.

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    More about this item

    Keywords

    Corruption; Credit bureau; Z-score; Crisis;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G01 - Financial Economics - - General - - - Financial Crises

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