The Economics of Financial Privacy: Regulation of Networks of Private Information in Credit Markets
- 86 Downloads
Global fmancial markets have undergone major changes in the past decade that are related to progressive market liberalization and the increasing adoption of information technologies. Financial service providers now produce and process vast amounts of personal data that is shared among credit grantors, via the intermediation of credit reporting agencies. The information networks that arise in this environment pose various problems to regulators, since they reveal strong concentration processes and, consequently, affect competition and allocative efficiency in the banking industry. These imperfections are reinforced by differing privacy regimes in the United States and Europe, which may imply regulatory drifts, distort competition and, in addition, represent „protectionist“ barriers.
Unable to display preview. Download preview PDF.
- Antonelli, C. (1992): The economic theory of information networks. In: Antonelli C (ed) The economics of information networks. Elsevier, Amsterdam, pp 5–27Google Scholar
- Arthur, B. (1994): Positive feedbacks in the new economy. McKinsey Quarterly 1: 81–95Google Scholar
- Bogino, C. (2001): US asks for hold on EU’s consideration of standard contract for data transfers, International Trade 18: 503Google Scholar
- Cole, R.H. (1992): Consumer and commercial credit management. Irwin, HomewoodGoogle Scholar
- European Commission DG Health and Consumer Protection (2001): Summaryhttp://europa.eu.int/comm/consumers/policy/developments/cons_cred/cons_credla_en.pdf Google Scholar
- European Union (1995): Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and of the free movement of such data. Official Journal L 281: 0031–0050Google Scholar
- European Union Data Protection Working Group (1999): Opinion 7/1999 on the level of data protection provided by the „safe harbor“ principles as published together with the frequently asked questions (FAQs) and other related documents on the 15 and 16 November by the US Department of Commercehttp://europa.eu.int/comm/internal_market/en/dataprotlwpdocs/wp27en.htm Google Scholar
- Guardia, N.D. (2000): Consumer credit in the European Union. ECRI Research Report 1Google Scholar
- Marquez, R. (2001): Competition, adverse selection, and information dispersion in the banking industry.forthcomingThe Review of Financial StudiesGoogle Scholar
- Pagano, M., Jappelli, T. (2000): Information sharing in credit markets: The European experience. CSEF Working Paper 35Google Scholar