Loan Delinquency In Banking Systems: How Effective Are Credit Reporting Systems?
Author(s) Jugnu Ansari and Saibal Ghosh


The role of credit reporting systems in influencing bank loan delinquency has received limited attention in the literature. To address this issue, we combine the staggered timing of credit reporting reforms across countries of Middle East and North Africa (MENA) with bank-level data for the period 2000-2012 to examine its impact on non-performing loans (NPLs). The analysis suggests that credit reporting system reforms is associated with a decline in NPLs by roughly 40%. These results are driven by reforms of credit bureau as compared with public credit registry. The analysis also points to a differential impact on NPLs across bank business models and across countries with differing banking structures.

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