Who participates in the credit market during the COVID-19 pandemic?

Evangelos Charalambakis, Federica Teppa and Athanasios Tsiortas

Working Papers from DNB

Abstract: This paper provides new evidence on what determines the probability of the consumer’s decision to apply for credit as well as the probability of the consumer credit being accepted by financial institutions during the COVID-19 pandemic. The empirical analysis is based on microdata collected between April 2020 and January 2022 as part of the ECB Consumer Expectations Survey, a new online survey panel of Euro area consumers. We find that age, financial literacy, unemployment and degree of urbanization significantly affect both the application and the acceptance of credit, albeit in the opposite direction. We also document that the probability for credit application increases whereas the probability of credit approval decreases during the COVID-19 outbreak. Finally, we find that there is heterogeneity in the type of credit, particularly between secured and unsecured loans.

Keywords: Consumer debt; Liquidity constraints; COVID-19 pandemic; Consumer Expectations Survey (search for similar items in EconPapers)
JEL-codes: C23 D12 D14 G51 (search for similar items in EconPapers)
Date: 2022-12
New Economics Papers: this item is included in nep-ban, nep-fle and nep-pay
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.dnb.nl/media/bx3ldccx/working_paper_no-759.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dnb:dnbwpp:759

Access Statistics for this paper

More papers in Working Papers from DNB Contact information at EDIRC.
Bibliographic data for series maintained by DNB ().