Abstract: The aim of any banking institution is to operate profitably so as to maintain its stability, growth and expansion. For all institutions in the banking industry lending is the core activity. Therefore loans are the dominant asset and also generate the largest share of the operating income and represent the industry’s greatest risk exposure. The banking industry in Kenya is facing various challenges, and loan non-performance and interest rate fluctuations are key issues that are threatening the stability and growth of the industry. This paper has provided a brief background on the topic, reviewed theories such as economic theory of private credit; the information asymmetry theory; the information screening theory; the credit or debt theory of money and the theory of financial intermediation. The paper further reviwed empirical literature touching on the main theme; it further provides a platform for further research under conclusion and recommendation.
Keywords: Information Asymmetry, Credit Information Sharing, Loan Performance.
Title: CRITICAL REVIEW ON LITERATURE ON INFORMATION ASSYMETRY, CREDIT INFORMATION SHARING AND LOAN PERFORMANCE: A RESEARCH AGENDA
Author: Gitari John Muthii, Dr. Jagongo Ambrose, Kenyanya Husborn Osoro
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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