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Adverse Selection in Credit to Individuals in Portugal: The Role of Private Credit Bureaus (Seleção adversa no crédito a particulares em Portugal: Papel dos bureaus de crédito privados) (Portuguese)

2009; RELX Group (Netherlands); Linguagem: Inglês

1556-5068

Vítor Pereira,

Housing, Finance, and Neoliberalism

This paper examines the phenomenon of adverse selection in the Portuguese credit market and the main factors that characterize it. For that, were developed: a real simulation, an opinion survey and a comparative analysis between the two credit bureaus present in the Portuguese market. Results confirm that sharing of information is reduced and there are difficulties in obtaining credit, in the case of individuals. Additionally, the paper underlines the potential benefit on the reduction either on default as well as loss of profitable business, which can be provided by using better the private credit bureau operating in Portugal.