Expansion of credit in Bolivia: Borrowers, indebtedness and mobility, 2010 - 2016
This document points to the following questions: What is the variation in credit explained by the inclusion of new borrowers? How much is attributed to the average indebtedness of already frequent borrowers? What are the characteristics of new borrowers? How much and from whom did the average indebtedness grow? What about the mobility of borrowers between entities? Based on information from the Financial System Supervisory Authority between 2010 and 2016, the work develops an accounting breakdown of changes in the loan portfolio for individuals; identifying the quantity effect (number of net borrowers entering the system) and the debt effect (average borrower indebtedness and costs), as well as a measure of the flow of borrower migration between financial entities and groups of these. One of the most important results indicates that half of the increase in year-on-year credit corresponds to new borrowers, while the other half attributes a debt to those already affected. Also, during the domain analysis period, the ﬂ ow of borrower migration from micro ﬁ nancial to commercial.