Increases in formal sector lending among the poor have created a need for credit information systems that provide potential lenders both positive and negative data about borrowers. In this paper we provide an overview of the development and use of credit information systems in industrialized and developing countries. The paper subsequently presents a test of the effects of a newly implemented credit information system using fixed effects estimation on panel data from Guatemala. Results indicate that improved screening effects from the system caused the level of portfolio arrears to decline between 2 and 3.5 percentage points six months after it was implemented in branch offices.
Jill Luoto, Craig McIntosh, Bruce Wydick. Credit Information Systems in Less Developed Countries: A Test with Microfinance in Guatemala. Economic Development and Cultural Change (January 2007), vol. 55, no. 2, pp. 313-334. DOI: 10.1086/508714