Data sharing in credit markets: Does comprehensiveness matter?

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Giovanni Barci, Galina Andreeva, Sylvain Bouyon

International institutions such as the World Bank have shown that data sharing on borrowers contributes to improving the risk profile of borrowers and increasing access for more customers to credit markets. Several relevant academic articles underline these results. Thus, the existence of data sharing between lenders is commonly acknowledged as one of the core ingredients of successful credit markets.

The originality of the present study is to analyse whether sharing more comprehensive data improves the functioning of credit markets in European countries. Assuming that mechanisms to share data do exist, does a higher comprehensiveness in the data collected matter for credit markets? The study answers this by firstly analysing whether higher comprehensiveness in the data collected by credit reference agencies (CRAs) in the EU-28 can impact credit markets, and secondly, by analysing to what extent the sharing of non-traditional data, that is, data not directly related to credit activities, can contribute to well-functioning credit markets