FACTORS INFLUENCING DISSEMINATION OF CREDIT INFORMATION BY CREDIT REFERENCE BUREAUS IN KENYA
Keywords:
Privacy Protection, Credit Reference, Business Ethics, Credit informationAbstract
Purpose: The purpose of this study was to analyze the factors influencing dissemination of credit information by credit reference bureaus in Kenya.
Methodology: The study used descriptive survey research design. This study used primary data which was collected through use of Questionnaires. The target populations of the study were all licensed Credit Reference Bureaus in Kenya. Data from the questionnaires were analyzed using Statistical Packages for Social Sciences (SPSS) to derive descriptive results. The results found were then presented in frequency tables, bar graphs and pie charts.
Results: The findings implied that macro-economic factors affect credit dissemination. Results indicated that privacy protection of credit information was one of the factors emphasized by credit bureaus. Results indicated that competition also led to low dissemination of information. The findings agreed that business ethics was one of the factor emphasize by credit bureaus. The findings also indicated there was a need by credit bureaus to appraise borrowers.
Unique contribution to theory, practice and policy: The study recommended management of credit bureaus to be on the outlook and follow the trends in the technology and demand in the market so as to improve on credit dissemination and by extension that of the overall company. The study also recommended that the Government institute adequate legal and institutional measures to protect consumer information, the government should also set rules on stiff competition in the financial sectors in Kenya, the study also recommended that banks should use CRB reports to appraise borrowers and to enhance business ethics.Downloads
References
Abreu, S. (2001). Case Studies of Selected Credit Bureaus in Several Latin American Countries”. GTZ: Department 41, Financial Systems Development and Banking Services, October.
Acharya, V., I., and Saunders, A. (2004). The Effects of Focus and Administrative Science Quarterly 21(1): 1—19.
Almazan, A. (2002). A Model of Competition in Banking: Bank Capital vs. Arm’s-Length Debt,” Journal of Finance, 47, 1367—1400.
Barron, J, M., and Michael, S. (2003). The Value of Comprehensive Credit Reports: Lessons from the U.S. Experience. In Credit Information Systems and the International Economy , by Margaret J. Miller, 273 - 310. Cambridge, MA: The MIT Press, 2003.
Barth S, James S. and Frank M. (2007). Credit Reference Bureaus; United Press.
Berger, A., Scott, F., and Nathan, M. (2005). ―Credit Scoring and the Availability, Price and Risk of Small Business Credit. Journal of Money, Credit, and Banking, 2005: 191-222.
Bloom, P. N., George, R. M., and Robert, A. (1994). Avoiding Misuse of Credit Information Vendors.
Brown, M., and Christian, Z.(2007). ―Credit Registries, Relationship Banking and Loan Repayment. Money, Credit and Banking, 2007: 1883-1918.
Central Bank of Kenya; (2010 - 2011); Credit Bureau Report; Nairobi Kenya.
Christensen, B., Rower, I.L., and Burge, E. (1995). Customer power, strategic investment, and the CNN. (March 19).
Coleman, J. C., Butchcr, J. N., and Carson, P. (2003). Abnormal Psychology and communities: the case of Scottish knitwear manufacturers, Journal of Management Studies 26(4): 397—416.
Cowan, Kevin and Jose De Gregorio (2003). Credit Information and Market Performance: The Case of Chile, in Credit Reporting Systems and the International Economy, Margaret Miller, ed. Cambridge: MIT Press.
Culnan, M. J., and Bies, R. J. (2003). Consumer Privacy: Balancing Economic and Justice Considerations, Journal of Social Issues (59:2), pp. 323-342.
DeGeorge, R. T. (2006).The Ethics of Information Technology and Business, Oxford: Blackwell Publishing Ltd
Del V. R., Alejandro Diaz de L., and Johanna G. H.(2003). ―Regulation of Personal Data Protection and of Credit Reporting Firms. In Credit Reporting Systems and the International Economy, by Margaret J. Miller, 397 - 431. Cambridge, MA: The MIT Press, 2003.
Desjardins, J. (2003). An Introduction to Business Ethics (McGraw-Hill, Boston).
Dinc, S. (2007). Bank Reputation, Bank Commitment, and the Effect of Diversification on Bank Risk and Return: Evidence from Individual Bank Loan Portfolios, forthcoming in Journal of Business.
Djankov, S., Caralee, M., and Andrei, S. (2007).―Private Credit in 129 Countries. World Bank Doing Business Project. January 2007. (accessed http://www.doingbusiness.org/documents/private_credit_jan23.pdf).
Fieser, J. (1996). Do Businesses Have Moral Obligations Beyond. Max Publishers.
Foxman, E. R. and Paula, K. (1993). Information TEchnology, Marketing Practice, and Consumer Privacy: Ethical Issues,” Journal of Public Policy & Marketing, 12 (Spring). 106.-I 9.
Galindo, A. and Margaret, M. (2001). ―Can Credit Registries Reduce Credit Constraints? Empirical Evidence on the Role of Credit Registries in Firm Investment Decisions. Paper prepared for the Annual Meetings of the Inter - American Development Bank. Santiago, Chile, 2001.
Goodwin, R. (1991). Protecting the Vulnerable, Chicago: University of Chicago Press
Heckman, G. (1991). Legislation. Marketing News, (December7), I, 16.
Hosmer, L. T.: (2003): The Ethics of Management (McGraw Hill Irwin, New York).
http://wwww.cnn.com/TECH/computing/9903/19/bbb.idg
Jappelli, T. and Marco, P. (2002). Information Sharing, Lending and Defaults: Cross-Country Evidence.” Journal of Banking and Finance 26 (10) (October): 2017-2045.
Jappelli, T. Brown E. and Pagano, M; (2005); Information Sharing in Credit Markets. The Journal of Finance. Vol. XLVIII, No.5.
Jappelli, T., and Marco, P (2000). Information sharing in Credit Markets: A Survey.” University of Salerno: CSEF Working Paper no. 36, March.
Jaworski, B., and Kobli, A.X. (1995). Market orientation: antecedents and consequences. John Knox Press, Louisville. KY).
Joseph, J. (2003). National Business Ethics Survey (2003): How Employees View Ethics Journal of Finance, 55, 679—713.
Kallberg, J. G., and Gregory, F. U. (2003) Private Business Information Exchange in the United States. In Credit Reporting Systems and the International Economy, by Margaret J. Miller, 203 - 228. Cambridge, MA: The MIT Press, 2003.
Kenya Banker Association; (2010). Credit Launch.
Kenya Credit Providers Association KCPA (2012). Kenya Credit Providers Association Road Map.
Kitsin, S. 2004. Credit Information-sharing in Thailand”. Conference on Credit Bureau Development in South Asia, mimeo.
Kühn, K-U. (2001), Information sharing in oligopoly: the truth telling problem – A Comment, Mimeo, Barcelona.
Lenaghan, T. ( 2001). “Microfinance and the Market for Credit Information in El Salvador”. Microenterprises Best Practices, Development Alternatives, Inc., Bethesda, Maryland.
Love, I., and Nataliya, M. (2003). Credit Reporting and Financing Constraints. World Bank Policy Research Working Paper 3142, 2003.
Lyles, M., Gerald, J., and Mike, S. (2003). Top management, strategy and organizational Management 4(1): 5. - 16.
Marquez R.and Hauswald, R. (2003), Information Technology and Financial Services Competition," Review of Financial Studies, 16: 921-948.
Mary, W. F. (1995). The Virtues of the Business Leader’, in M. L, Stackhouse, P. P.
McCann, S.). Rods and P. N. Williams (eds.), On Moral Business (Eerdmans, Grand Rapids, Ml), pp. 692-700.
McIntosh, C. and Bruce W. (2004). “A Decomposition of Incentive and Screening Effects in Credit Market Information Systems.” Working Paper, University of California at San Diego/University of San Francisco.
Messmer, N. (2000) U.S., Europe at Impasse Over Privacy,” Network World, Modem Life. 6th Edition (Scott, Foresman, Glenview, IL). msb,edu(faculty/culnanm/gippshome.html).
Miller, M. J. (2003). Credit Reporting Systems around the Globe: The State of the Art in Public Credit Registries and Private Credit Reporting Firms”. Credit Reporting Systems and the International Economy. Margaret J. Miller, Ed. Cambridge, Massachusetts: MIT Press.
Mugenda, O.M. and Mugenda, A.G. (2003). Research Methods: Quantitative and Qualitative Approaches. Nairobi: Acts Press
Nissenbaum, H. (2003). Protecting Privacy in an Information Age,” Law and New Information Technologies: Legal and Societal Considerations,” Journal of Finance, 58 (February). 98-110.
Olegario, R. (2003). Credit Reporting Agencies: A Historical Perspective. Margaret J.Miller, Ed. Cambridge, Massachusetts: MIT Press.
Padilla, A.J., Pagano, M., (1997). Endogenous communication among lenders and entrepreneurial incentives. The Review of Financial Studies 10 (1), 205–236
Pagano, M., Jappelli, T. (1993). Information sharing in credit markets. Journal of Finance 43 (5), 1693– 1718.
Parent, R. (1983). A Century of Consumer Credit Reporting in America”, Federal Reserve .
Petersen. M. (2003). The Effect of Credit Market Competition on Philosophical Dimensions of Privacy, F Schoeman, ed Cambridge, Cambridge University Press, 75-103. Originally published in Harvard Law Review, 4(193).
Porter, M. E., and Kramer, M. R. 2006. Strategy Society: The Link Between Competitive Advantage and Corporate Social Responsibility, Harvard Business Review (84:12), December, pp. 78-92
Powell, A., Nataliya, M., Margaret, M., and Giovanni, M. (2004). Improving Credit Information, Bank Regulation and Supervision: On the Role and Design of Public Credit Registries. Washington, D.C.: World Bank Research Working Paper Series.
Quick, R. (l998). On-Line Groups Are Offering Up Privacy Plans,” The 17, 559—96. Requires?’, Journal of Business Ethics 15, 457-468.
Roland, E. and T. F. (1999). Research Methods; United Printers
Schermerhom, J. P. Jr. (2005). Management, 8th Edition (Wiley. New York).
Slater, S., and Narver, I. C. (2003). Customer-led and market-oriented: let’s not confuse speculative bubble. Administrative Science Quarterly 33(June): 177— 193.
Smedinghoff, T. J., and Hamady, L. E. (2008). “New State Regulations Signal Significant Expansion of Corporate Data Security Obligations,” BNA Privacy and Security Law Report (7), October 20, p. 1518
Solove, D. J. (2007). I’ve Got Nothing to Hide’ and Other Misunderstandings of Privacy, San Diego Law Review (44:Fall), pp. 745-772.
Solove, D. J. (2006). A Taxonomy of Privacy, University of Pennsylvania Law Review (154:3), pp. 477-560.
Stackhouse, P. P. McCann. Koala, S.J. and Williams, P. N. (ads.); (1995). On Moral Business. (Eerdnsans, Grand Rapids, MI), pp. 10—34.
Velasquez, M. (2006). Business Ethics: Concepts and Cases (6thed.), Upper Saddle River, NJ: Pearson
Viewpoints. (Fair Isaac Publication) October/November 2003, http://www.fairisaac.com
Vives, X. (1990), Trade association disclosure rules, incentives to share information, and welfare, The RAND Journal of Economics, Vol. 21 (3), pp. 409-430
Downloads
Published
How to Cite
Issue
Section
License
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work’s authorship and initial publication in this journal.
