Since the mid 90’s an increasing number of reports and press articles reveal a persistent credit rationing in Argentina. Increasing interest about discrimination against small borrowers in credit markets is motivating politicians and journalists to devote time and pages to this issue.
Academic and non-academic economists, though, do not show the same interest in this issue. Unfortunately, there is not such a thing as a common view about this issue. This paper explores the effects of redlining, preemptive self selection and the role of credit bureaus as informational classifiers of potential borrowers.
The role of “permanent” discrimination by credit bureaus, exacerbating that behavior in the banking system are finally presented, including some suggestions to provide public policies that are still absent in the Argentine financial system.
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PDF Ebook De-Regulated Credit Bureaus: Could They Raise Credit Rationing?
