Exploiting the country-level adoption of public credit registries (PCRs), we document a positive impact of interbank credit information-sharing on firms’ use of trade credit. The effect of PCRs is more pronounced in firms with greater financial needs, greater information asymmetry, and higher agency costs and in countries with weaker legal environments. PCRs with wider coverage, better availability, and stronger regulation also exhibit a greater impact on firms’ use of trade credit. The results are consistent with the notion that interbank credit information-sharing incentivizes firms to maintain a good credit reputation with financial institutions, which increases their use of trade credit.

Keywords: Trade credit; Interbank credit information-sharing; Public credit registries; Credit risk