Beyond Income: The Complexities of Credit Risk in Developing Countries

Benjamin Prince Nartey Menzo, Diana Mogre and Samuel Asuamah Yeboah

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates the complex interplay of factors contributing to credit risk in developing countries. Focusing on borrower characteristics, we examine the interconnected roles of income levels, employment stability, and credit history. The analysis reveals how lower income, volatile employment, and limited credit access can significantly amplify credit risk. The paper explores the challenges posed by these factors in developing economies and proposes strategies to mitigate credit risk and foster financial inclusion. By understanding these dynamics, policymakers and financial institutions can implement targeted interventions to enhance economic resilience and promote sustainable development.

Keywords: Credit risk; Developing countries; Income levels; Employment stability; Credit history; Financial inclusion; Economic resilience; Policy interventions Credit risk; Developing countries; Income levels; Employment stability; Credit history; Financial inclusion; Economic resilience; Policy interventions Credit risk; Developing countries; Income levels; Employment stability; Credit history; Financial inclusion; Economic resilience; Policy interventions (search for similar items in EconPapers)
JEL-codes: G21 O16 O17 (search for similar items in EconPapers)
Date: 2024-08-16, Revised 2024-09-20
New Economics Papers: this item is included in nep-fle
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https://mpra.ub.uni-muenchen.de/122365/1/MPRA_paper_122364.pdf revised version (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:122364

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