Description

This paper constitutes a first effort to provide an extensive characterization of Chilean households’ financial debt during the last decade, which allows contributing to the debate with an evaluation of the risks that this segment implies for the Chilean financial system. The article considers the various existing lenders, available credit products and the main characteristics of debtors in each segment, as well as an analysis of the exposure of financial agents to household debt, including a comparison of their credit risk indicators. Chilean household debt displays an important dynamism in the period 1997-2008. This dynamism manifests itself in diverse aspects, among which are the changes in credit conditions, the entry of new lenders to the system, regulatory changes and a strong correlation with the economic cycle. Although this analysis concludes that, because of multiple factors, the risk of this segment of credit is bounded, it also highlights the relevance of its constant monitoring.