An Empirical Investigation Of Payment Performance For Consumer Loans In Turkey

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Date

2008-12

Author

Özdemir, Özlem

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This paper explores the relationship between consumer credit clients’ payment performance 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 significant influence on customers’ pay back performance. Thus, the longer the maturity time and the higher the interest rate, the higher the credit payment performance risks. Accordingly, banks and other financial institutions may minimize the credit payment performance risk by adjusting the financial instruments such as the interest rate and the maturity time.

Subject Keywords

Credit, Consumer, Banks, Payment Performance Risk, Turkey

URI

http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/265
https://hdl.handle.net/11511/58493

Journal

ODTÜ Gelişme Dergisi

Collections

Department of Economics, Article

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Citation Formats

Ö. Özdemir, “An Empirical Investigation Of Payment Performance For Consumer Loans In Turkey,” ODTÜ Gelişme Dergisi, vol. 35, no. 2, pp. 385–398, 2008, Accessed: 00, 2020. [Online]. Available: http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/265.