This paper analyzes the impact of introducing credit information-sharing
systems on firms’ access to finance. The
analysis uses multi-year, firm-level surveys for 63 countries
covering more than 75,000 firms over the period
2002–13. The results reveal that credit bureau reforms, but
not credit registry reforms, have a significant and robust
effect on firm financing. After the introduction of a credit
bureau, the likelihood that a firm has access to finance
increases, interest rates drop, maturity lengthens, and the
share of working capital financed by banks increases. The
effects of credit bureau reforms are more pronounced the
greater the coverage of the credit bureau and the scope
and accessibility of the credit information-sharing scheme.
Credit bureau reforms also have a greater impact on firms’
access to finance in countries where contract enforcement
is weaker. Finally, there is some evidence that the
effects of credit bureau reform are more pronounced
for smaller, less experienced, and more opaque firms.