Quality in the financial sector from the perspective of consumer credits by socioeconomic and demographic characteristics

This study relates to the quality of services in the financial sector by identifying the factors affecting consumer credit risks of households, considering their socioeconomic and demographic characteristics. To do this, we build our analyses on 5120 households from Turkey for the years 2006 and 2007, which coincide with the economic expansion period of the country. We use binary logistic regressions in which the creditworthy households are identified as the ones who did not default in their payments of housing rents or (and) mortgages within the past 12 months. We further make robustness tests by only considering higher income earning households with distorted expenditure behaviours. Overall, our results indicate the consumer credits risk attributes of the households driven by the supply and demand sides of the consumer credits.