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Working paper

Информационное посредничество на рынке банковских кредитов: cтимулы к обмену недостоверной информацией

The introduction of institutions of credit information sharing — private credit bureaus and public credit registries — in the market for bank loans represents one of the possible solutions of information asymmetry problem, — the problem which most of the creditors tend to face. However the possibility of information sharing influences the bank's incentives in two different ways. While it disciplines the borrowers and, therefore, reduces the share of bad loans, a bank loses the competitive advantage, namely the monopolistic knowledge about the data in its clients' credit histories. Does the bank have an opportunity to use the benefits of information sharing without losing its competitive advantage and its clientele? One way to do so is to report false data on borrowers. In this paper we analyze the bank's incentives to misreport given the bank cannot refuse to participate in the information sharing system as the membership is obligatory. Our main result is that the opportunity to get extra profit and to offer less expensive credit to new clients explains why banks may prefer the strategy of dishonest behavior.