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The paper shows that peer information which banks collected from previous lending plays a role in current loan pricing. I construct peer information at the bank-firm level and find that firms obtain lower loan rates when borrowing from banks that lent to more similar peers in recent periods. The...
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The aim of this study was to ascertain what can be done by the informal finance sector to close the credit gap in order … as a last resort by SMEs that fail to access credit from the formal finance sector, owing to, among other issues … absence of credit bureaus in developing countries also contribute to the failure to access finance from formal institutions …
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