Information Sharing and Financial Sector Development in Africa. Issue 1 (2nd January 2017)

• Record Type: Journal Article
• Authors: Tchamyou, Vanessa S.; Asongu, Simplice A.
• Is Part Of: Journal of African business. Volume 18:Issue 1(2017)
• Page Start: 24
• Page End: 49
• Publication Date: 2017-01-02
• Subjects: information sharing -- banking -- Africa; Africa -- Commerce -- Periodicals; Africa -- Economic conditions -- Periodicals; 338.96
• DOI: 10.1080/15228916.2016.1216233
• Languages: English
• ISSNs: 1522-8916

Abstract

ABSTRACT: This study investigates the effect information sharing has on financial sector development in 53 African countries for the period 2004 to 2011. Information sharing is measured with private credit bureaus and public credit registries. Hitherto unexplored dimensions of financial sector development are employed, namely: financial sector dynamics of formalization, informalization, and non-formalization. The empirical evidence is based on Ordinary Least Squares (OLS) and Generalized Method of Moments (GMM). The following findings are established. Information-sharing bureaus increase (reduce) formal (informal/non-formal) financial sector development. In order to ensure that information-sharing bureaus improve (decrease) formal (informal/non-formal) financial development, public credit registries should have between 45.45 and 50% coverage while private credit bureaus should have at least 26.25% coverage.