asia pacific credit coalition
Download
Skip this Video
Download Presentation
Asia-Pacific Credit Coalition

Loading in 2 Seconds...

play fullscreen
1 / 15

Asia-Pacific Credit Coalition - PowerPoint PPT Presentation


  • 130 Views
  • Uploaded on

Asia-Pacific Credit Coalition. Lessons for Information Sharing Standards in APEC. By Michael Turner Presentation for 4th SEACEN-ABAC/ABA/PECC Public-Private Dialogue for the Asia Pacific Region Westin Kuala Lumpur 18-19 August 2008. About APCC.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Asia-Pacific Credit Coalition' - hilary-shannon


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
asia pacific credit coalition

Asia-Pacific Credit Coalition

Lessons for Information Sharing Standards in APEC

By Michael Turner

Presentation for 4th SEACEN-ABAC/ABA/PECC Public-Private Dialogue for the Asia Pacific Region

Westin Kuala Lumpur

18-19 August 2008

about apcc
About APCC
  • The Asia Pacific Credit Coalition, an affiliate of the non-profit Political and Economic Research Council (PERC), is committed to
    • The promotion of credit reporting standards within APEC
    • Showing value proposed reporting standards
  • In pursuit of goal, APCC
    • Hosts seminars with national regulators and policy makers.
    • Reaches out to APEC staff, media, industry execs and governments
    • Conduct research demonstrating need for standard
policy position for common standard i
Policy Position for Common Standard (I)

Support the standard of full-file (positive and negative payment) and comprehensive (across many sectors) reporting to a private bureau based on results that it:

  • increases lending to the private sector, especially low-income groups, women; and,
  • results in better loan performance.
policy position for common standard ii
Policy Position for Common Standard (II)

Develop standard that meets OECD Fair Information Practices (1980), providing to data subjects rights of:

  • notice
  • access
  • choice
  • notification of adverse action
  • dispute
  • correction

Ensures that only responsible and experienced actors such as Experian will collect and maintain the data

common findings
Common Findings

Long history of investigation and study of information sharing. Results are full-file and comprehensive reporting:

      • increases lending to the private sector especially among lower social segments more than other reporting regimes; and,
      • results in better loan performance than segmented and negative-only reporting.
  • Private bureaus with comprehensive data increase lending to the private sector.
consequences of full file vs negative only i us data
Consequences of Full-file Vs. Negative-only I: (US Data)

Results on acceptance rates

  • acceptance rates climb as information moves from full-file to negative-only in all cases
consequences of full file vs negative only for performance
Consequences of Full-file Vs. Negative-only for Performance

Results on loan portfolio performance

  • default rates climb as information moves from full-file to negative-only in all cases
    • good risks are confused for bad ones
    • bad risks confused for good ones
  • Data sharing
    • improves quality of information for risk provisioning, allowed under Basel II
    • with lower defaults, small capital requirements, lower credit constraints
distributional consequences of full file vs negative only
Distributional Consequences of Full-file vs. Negative Only

Results on demography using real credit files

  • disadvantaged social segment gain greater access than others
    • racial-ethnic minorities
    • young
    • low-income groups
  • Colombian simulations
    • under negative-only, 33% of acceptances women
    • under full-file, 47% are women
growth and equality
Growth and Equality

Comprehensive reporting promotes economic growth by enabling an increase in lending to the private sector by as much as 45% of GDP.

  • Statistical tests show that an increase in private sector lending by 30% of GDP can yield:
    • an increase in GDP growth rates of 1%;
    • an increase in productivity growth of 0.75%; and
    • an increase in capital stock growth of 0.75%.
  • An increase in private sector claims by 50% of GDP:
    • lowers the growth of the Gini coefficient (an inequality measure) by at least 0.25%, and more by some estimates.
    • lowers the growth of the percentage of the population living under $1 per day by 2%, and more by some estimates.
    • increases the growth of the lowest (poorest) quintile’s income share by at least 0.45%, and more by some estimates.

Source: Ross Levine, “Financial Development and Economic Growth: Views and Agenda” Journal of Economic Literature, Vol. 25(June 1997), pp. 688–726; Thorsten Beck, Asli Demirguc-Kunt and Ross Levine, “Finance, Inequality and the Poor.”

www.econ.brown.edu/fac/Ross_Levine/Publication/Forthcoming/Forth_3RL_Fin%20Inequalily%20Poverty.pdf.

slide10

North America

Europe

Aust/NZ (N=16)

Middle East

N. Africa

(N=5)

E. Europe

(N=8)

S. Asia

(N=3)

Sub-Saharan

Africa

(N=12)

East Asia

(N=5)

Latin

America

(N=18)

Background: The Financial Sector

East Asia:

Healthy private sector lending in few countries

Source: International Financial Statistics, IMF

slide11

Legal Rights of Creditors and Credit Information by Region

Wealthier regions have both, strong legal rights

and extensive credit information

Source: Doing Business Database, World Bank

slide12

Legal Rights of Creditors & Credit Information by APEC Member

Wealthier economies in APEC have both, strong legal rights

and extensive credit information

Source: Doing Business Database, World Bank

slide13

APEC Full-file & Comprehensive Reporting Coverage by Ownership

Source: Doing Business Database, World Bank

what you can do
What You Can Do

Much work remains to be done, and help is needed. If you are interested you can:

  • Assist in the formulation of standards for APEC, by helping to take local concerns into account
  • Participate in local and country area outreach efforts, sharing experiences of best practices and methods of engaging press and policymakes
  • Join APCC coalition to may it wider, broader, and more multinational.
for more information

For more information

Dr. Michael Turner

Asia-Pacific Credit Coalition

100 Europa Drive, Suite 403

Chapel Hill, NC 27517

www.apeccredit.org

Phone: +1 919 338 2798

ad