Consumer credit during the crisis: evidence from contracts

The study analyses trends in the market for consumer credit during the crisis, relying on data by CRIF referring to demand for personal and special-purpose loans and to contracts signed between 2007 and 2013 in Italy (55 and 37 million respectively). The analysis shows how the sharp reduction in durable consumption has been associated with a decrease in demand for loans, with the exception of contracts for small amounts (<1000 euro). These were more widespread among the youngest customers, whose relative importance has therefore increased. Banks and financial companies have supported the repositioning towards loans for small amounts and contracts with low monthly installments (<100 euro). Moreover, the average amount of loans has decreased more for banks, whose activity has become increasingly similar to that of financial companies. Loans for medium-large amounts have been taken out by a much lower number of people; moreover, the maturity of these loans has been lengthened to reduce the installments. Risk indicators have improved.