Tasa Máxima Convencional y Oferta de Créditos
The discussion about the Interest Rate Ceiling (TMC) has generated several proposals that involve changing the current way of calculating this interest rate, which applies to consumer loans of amounts smaller than 200 UF and maturities of less than 90 days. In this paper we analyze the effect of a change in the weighting factor of the current formula, focusing primarily in the reduction of the credit supply. For this purpose, we assume that interest rates can be characterized by a log-normal distribution. Our results show an important sensitivity of the credit supply to changes in the weighting factor. In fact, by reducing the weighting factor from its current value (1.5) to values below 1.3, the credit supply would be strongly reduced in case the distribution of risk has a high dispersion.
|Date of creation:||Jul 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Casilla No967, Santiago|
Phone: (562) 670 2000
Fax: (562) 698 4847
Web page: http://www.bcentral.cl/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rodrigo Alfaro A. & David Pacheco L. & Andrés Sagner T, 2011. "Dinámica de la Tasa de Incumplimiento de Créditos de Consumo en Cuotas," Notas de Investigación Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 14(2), pages 119-124, August.
When requesting a correction, please mention this item's handle: RePEc:chb:bcchwp:673. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Claudio Sepulveda)
If references are entirely missing, you can add them using this form.