Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/230330 
Authors: 
Year of Publication: 
2020
Series/Report no.: 
Graduate Institute of International and Development Studies Working Paper No. HEIDWP05-2020
Publisher: 
Graduate Institute of International and Development Studies, Geneva
Abstract: 
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.
Subjects: 
Household finance
credit risk
consumer delinquency
JEL: 
G20
G21
D12
Document Type: 
Working Paper

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