Credit Information Sharing and Credit Availability in Kenya
Loading...
Date
2017
Authors
James, Rosemary
Iraki, X. N.
Korir, Julius
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
This study provides an empirical investigation of the effect of credit information sharing on credit availability in
Kenya while controlling for bank characteristics. The study employed the explanatory non-experimental research
design. A census of the 43 financial institutions that are licensed under the Kenyan Banking Act was conducted.
Both primary and secondary data were collected. The key source documents for the secondary data were the
financial disclosures prepared by the banks on a quarterly basis for the period 2008-2012. Fixed effects regression
results showed that presence of information sharing had significant positive effect on credit availability as
measured by the volume of lending. However, the intensity of information sharing had very little effect on credit
availability. The study recommends that the government should ensure that the recently introduced credit reference
bureaus cater for all types of credit institutions and also organized informal groups so that prospects of enhanced
credit availability can be further improved. Secondly, the government needs to embark on effective awareness
creation of the benefits of credit information sharing to the financial institutions.
Keywords: Asymmetric Information, Credit Availability, Information sharing
Description
Research Article
Keywords
Asymmetric Information, Credit Availability, Information sharing
Citation
European Journal of Business and Management, www.iiste.org. Vol.9, No.34, 2017