Munich Personal RePEc Archive

Information Asymmetry, Financialisation and Financial Access

Asongu, Simplice and Odhiambo, Nicholas (2018): Information Asymmetry, Financialisation and Financial Access. Forthcoming in: International Finance

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Abstract

This study investigates whether information sharing channels that are meant to reduce information asymmetry have led to an increase in financial access. The study employs a Generalised Method of Moments technique using data from 53 African countries during the period from 2004-2011 to examine this linkage. Information sharing channels are theoretically designed to promote the formal financial sector and discourage the informal financial sector. The study uses two information sharing channels: private credit bureaus and public credit registries. The study found that both information sharing channels have a positive and significant impact on financial access. The study also found that public credit registries complement the formal financial sector to promote financial access. The policy implications are discussed.

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