The Impact of Information Sharing on the Use of Collateral versus Guarantees

Ralph De Haas*, Matteo Millone

*Corresponding author for this work

Research output: Contribution to JournalArticleAcademicpeer-review


This study exploits contract-level data from Bosnia and Herzegovina to assess the impact of a new credit registry on the use of borrower collateral versus third-party guarantees. Among first-time borrowers, the introduction of mandatory information sharing leads to a shift from collateral to guarantees, in particular for riskier borrowers. Among repeat borrowers, both collateral and guarantee requirements decline in proportion to the length of the lending relationship. These results suggest that information sharing can both reduce adverse selection among new borrowers and hold-up problems among repeat borrowers.

Original languageEnglish
Pages (from-to)S14-S19
Number of pages6
JournalWorld Bank Economic Review
Issue numberIssue Supplement _1
Early online date3 Dec 2019
Publication statusPublished - 1 Feb 2020


  • collateral
  • guarantees
  • information sharing


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