This study investigates the effects of economy-wide corruption on bad loans across a large sample of countries. The … evidence reveals that greater corruption is associated with more bad loans. Loan defaults are lower in faster growing economies … appreciable effects on the incidence of bad loans. The findings are robust to an alternate corruption measure and to endogeneity …

registration, and taxation), leads to greater corruption. More regulatory procedures, especially for business startups and property … registrations, have the most corruption-enhancing effect. Whereas lengthier procedures also generally spur corruption, there are … important differences. Finally, higher regulatory transactions costs do not seem to significantly impact corruption. Policy …