Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/83237 
Year of Publication: 
2004
Series/Report no.: 
Discussion Paper No. 2004/20
Publisher: 
Turkish Economic Association, Ankara
Abstract: 
This paper explores the relationship between consumer credit clients’ payment performance i.e. credit default risk and some demographic and financial variables. Data to examine this relationship is obtained from the customer records of a private bank in Turkey. A logistic binary regression is used to evaluate the data. Financial variables rather than the demographic characteristics of clients have a significant influence on customers’ pay back performance. Thus, the longer the maturity time, the higher the interest rate, and the higher the credit default risks. This suggests bankers apply appropriate adjustments to financial variables in order to minimize credit default risk.
Document Type: 
Working Paper

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