Credit Information Sharing and the Shift in Bank Lending towards Households

Multiple Bank Lending, Creditor Rights, and Information Sharing*

Review of Finance ◽

10.1093/rof/rfu001 ◽

2014 ◽

Vol 19 (2) ◽

pp. 519-570 ◽

Cited By ~ 44

Author(s):

Alberto Bennardo ◽

Marco Pagano ◽

Salvatore Piccolo

Keyword(s):

Information Sharing ◽

Bank Lending ◽

Creditor Rights

Multiple-Bank Lending, Creditor Rights and Information Sharing

SSRN Electronic Journal ◽

10.2139/ssrn.1341357 ◽

2009 ◽

Cited By ~ 23

Author(s):

Alberto Bennardo ◽

Marco Pagano ◽

Salvatore Piccolo

Keyword(s):

Information Sharing ◽

Bank Lending ◽

Creditor Rights

Caste as self-regulatory club: evidence from a private banking system in nineteenth century India

Journal of Institutional Economics ◽

10.1017/s1744137415000466 ◽

2015 ◽

Vol 12 (3) ◽

pp. 677-698 ◽

Cited By ~ 3

Author(s):

MALAVIKA NAIR

Keyword(s):

Nineteenth Century ◽

Central Bank ◽

Information Sharing ◽

19Th Century ◽

Banking System ◽

Bank Lending ◽

Social Institution ◽

Regulatory Mechanisms ◽

Private Banking

AbstractThe Chettiar banking system evolved and functioned in the absence of a government sponsored central bank in 19th-century India. I find that the underlying common social institution of caste was crucial for the workings of the banking system and effectively acted as a club. Exclusion was achieved by restricting membership by birth and the practice of endogamy. These mechanisms created the necessary incentives to provide meaningful rules as well as their enforcement. I describe and analyze the privately provided self-regulatory mechanisms of clearinghouses, inter-bank lending and information sharing. The Chettiar banking system thus adds to existing instances of self-regulated banking as well as points to the economic underpinnings of caste as an institution.