INFORMATION SHARING BETWEEN CREDIT INSTITUTIONS: RECOMMENDATIONS FOR TURKISH FINANCIAL SECTOR

The purpose of this paper is to evaluate the contribution of information sharing on credit scores of borrowers to the banking system. In this context, firstly information sharing literature review shows that the information sharing between creditors means financial development which is achieved higher volumes of credits by financial institutions. In addition to the increase in the amount of loans granted, borrowers are obliged to pay their debts in a timely manner in order to be able to borrow under the more favorable conditions in the next borrowing. This means stability for the financial system. International academic discussions on the subject start in the 90s and the establishment of credit bureaus in Turkey coincided with the 1995. Thus subject is a relatively new and an extremely important issue for Turkey. To sum in a nutshell, research questions that this paper answers are: "What can be explored on this issue for Turkish Financial System?" "What are the effects of the credit bureaus in Turkey to the financial development? What kind of policies can be undertaken for the growth of these bureaus?”