I would also like to thank the Board of Directors and Management of CompuScan CRB for inviting me to preside over this function. Credit markets are plagued by informational problems, and these problems are especially acute in developing economies. Informational problems raise transactions costs, often to such an extent that potential borrowers are denied access to credit in the formal sector.
The adverse consequences of informational imperfections for financial markets were analysed in the 1970s by Joseph Stiglitz and George Akerlof; work for which they received the Nobel Prize. The etymology of the word “credit” is the latin verb “credere”; to trust or believe.