Number | NPL determinant | Definition | Type of characteristic |
1 | Adverse | Borrowers who experienced adverse at the time of assessing the application | Character |
2 | Age | The age of the borrower | Character |
3 | Bankrel | Four indicators for the type of banking relationship: 1. no customer, 2. only loans, 3. only deposits, 4. deposits and loans. | Capital |
4 | Collateral | Four indicators for the type of collateral: 1. no collateral, 2. securities (checks-exchange), 3. “mortgage on the property”, 4. cash collateral cover (deposits, bancassurance and investment savings products). | Collateral |
5 | LTT | Loan to turnover ratio. | Economic Conditions |
6 | Owfac | dummy variable taking the value 0 if the borrower had not owned facilities and the value 1 if the borrower had owned facilities at the time of assessing the application. | Capacity |
7 | Property | dummy variable taking the value 0 if the borrower and the guarantor meet the criterion of real estate, or the value 1 otherwise. | Capital |
8 | Residence | Three indicators for the type of residence: 1. “rented house”, 2. “live with parent”, and 3. “private residence”. | Capacity |
9 | Years | The years of vocational experience. | Economic conditions |