Does leverage predict delinquency in consumer lending? : evidence from Peru

Walter Cuba (Central Reserve Bank of Peru)

This paper examines to what extent household leverage - as measured by the debt-to-income (DTI) ratio - predicts delinquency in Peru's consumer credit market. A model is estimated to assess the relation between delinquency and the DTI ratio. The initial and current DTI ratios are assessed as delinquency predictors. The results confirm that the current DTI ratio is effective for predicting delinquency. This evidence supports its use in financial regulation to improve household credit risk assessment and control.

MoreLess

Year of publication:	February 2020
Authors:	Cuba, Walter
Publisher:	Geneva, Switzerland : Graduate Institute of International and Development Studies, International Economics Department
Subject:	Household finance \| credit risk \| consumer delinquency \| Peru \| Kreditrisiko \| Credit risk \| Verbraucherkredit \| Consumer credit \| Konsumentenverhalten \| Consumer behaviour \| Private Verschuldung \| Private debt \| Privater Haushalt \| Household

Extent:	1 Online-Ressource (circa 25 Seiten) Illustrationen
Series:	Working paper / Graduate Institute of International and Development Studies. - Genève : [Verlag nicht ermittelbar], ZDB-ID 2523350-6. - Vol. no. HEIDWP2020, 05
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	hdl:10419/230330 [Handle]
Classification:	G20 - Financial Institutions and Services. General ; G21 - Banks; Other Depository Institutions; Mortgages ; D12 - Consumer Economics: Empirical Analysis
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012171272