Improving Credit Information, Bank Regulation, and Supervision: On the Role and Design of Public Credit Registries

The authors analyze how data in public credit registries can be used both to strengthen bank supervision and to improve the quality of credit analysis by financial institutions. Empirical tests using public credit registry (PCR) data were performed in collaboration with the central banks in Argentina, Brazil, and Mexico. The results of the empirical tests confirm the value of the data for credit risk evaluation and provide insights regarding its use in supervision, including in calculations of credit risk for capital and provisioning requirements, or as a check on a bank's internal ratings for the Basel II's internal rating-based approach. The authors also define a set of critical design parameters and use the results to comment on appropriate public registry design. Finally, they discuss the relationship between the different objectives of a PCR and how they influence the registry's design.

Bibliographic Details

Main Authors:	Powell, Andrew, Mylenko, Nataliya, Miller, Margaret, Majnoni, Giovanni
Language:	English en_US
Published:	World Bank, Washington, D.C. 2004-11
Subjects:	ACCESS TO INFORMATION, ADVERSE SELECTION, APPLICATIONS, ASYMMETRIC INFORMATION, BANK REGULATION, BANK SUPERVISION, BANKING REGULATION, BANKING REGULATIONS, BANKING SECTOR, BANKING SUPERVISION, BANKING SYSTEM, BORROWING, CENTRAL BANKS, COLLATERAL, COMMERCIAL CREDIT, COMPETITIVENESS, CONSUMERS, COVERAGE, CREDIT CARD COMPANIES, CREDIT CARDS, CREDIT LINES, CREDIT MARKETS, CREDIT RISK, DEBT, DEVALUATION, ECONOMIC ANALYSIS, ECONOMIC PROBLEMS, ECONOMIES OF SCALE, ECONOMIES OF SCOPE, EMPIRICAL ANALYSIS, EMPIRICAL EVIDENCE, EMPIRICAL RESEARCH, EMPLOYMENT, EQUILIBRIUM, EXCHANGE RATE, EXPOSURE, FINANCE COMPANIES, FINANCIAL CRISES, FINANCIAL DATA, FINANCIAL ENTERPRISES, FINANCIAL INSTITUTIONS, FINANCIAL SECTOR, FINANCIAL SERVICES, FINANCIAL SYSTEM, INCOME, INDEBTEDNESS, INSURANCE, INSURANCE FIRMS, INTEREST RATE, INTEREST RATES, ISSUERS, LARGE LOANS, EASING, LENDING INSTITUTIONS, LENDING PATTERNS, LOAN SIZE, MACROECONOMIC POLICY, MARKET POWER, MATURITIES, MICROFINANCE, MONETARY POLICY, POLICY DECISIONS, PRIVACY, PRIVATE COSTS, PROBABILITY OF DEFAULT, PROBLEM LOANS, QUALITY STANDARDS, QUANTITATIVE ANALYSIS, RECIPROCITY, RELATIONSHIP LENDING, RETURNS TO SCALE, RISK EVALUATION, RISK MEASUREMENT, SOLVENCY, STATISTICAL ANALYSIS, SYSTEMIC RISK, THEORETICAL MODELS, TRANSPARENCY, WILLINGNESS TO PAY,
Online Access:	http://documents.worldbank.org/curated/en/2004/11/5509306/improving-credit-information-bank-regulation-supervision-role-design-public-credit-registries https://hdl.handle.net/10986/14194
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