Information sharing in emerging credit markets

This paper examines the lack of information flow in the credit markets of developing countries. We show that the miscoordination among financial intermediaries might explain why lenders don't share their information about the borrowers. The competition effect of more transparency in the market leads to a higher probability of default of the firm, also generating credit rationing. I gratefully acknowledge the invaluable guidance of Marco Pagano. I also thank Marco Pagnozzi and Riccardo Martina for helpful comments