engleski

Multivariate statistical analysis of household debt in banks over the counties in Croatia

Banking loans represent dominant form of debt financing for household sector. Research show that banks are key financial institutions in country's narrower territorial units, outside the financial centres and that characteristic of local economy determine bank’s business policy. This paper examines characteristics of households’ debt in banks within the counties in Croatia. In order to define relatively homogenous groups of counties in Croatia according to households’ debt characteristics, the method used in the paper is multivariate statistical analysis, more precisely factor and cluster analysis. The analysis considers different types of loans and currency structure of bank loan portfolio for household sector in Croatian counties, as well as level of indebtedness of households regarding economic and demographic indicators of county development. Economic interpretation of results collected indicates interrelation of county economic development and demographic characteristics to banking households’ sector loan portfolio. Characteristics of banking loan portfolio for households based on different types of loans and currency criteria are emphasised, as well. Conclusions in a paper discusses deviations according to counties as well as analytically determined clusters of relatively homogenous counties. Results in our analysis point to importance of consumer protection, financial literacy together with the prevention of households’ indebtedness. Analysis in this article highlights banks’ credit policy towards household sector in Croatian counties and importance of forming bank business policy for this sector, considering specifics of each county or cluster of counties with homogenous characteristics.

household debt, banks' credit policy, multivariate statistical analysis, Croatian Counties, Eastern Croatia

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