Percorrer por autor "Accorato, Maria Pia"
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- Peer-to-Peer Lending in US : evaluating the default riskPublication . Accorato, Maria Pia; Andrade, João Guerreiro Freire deThe global financial crisis in recent years highlighted the reduction in the possibility of accessing to traditional credit for many consumers and small businesses. In this scenario, P2P lending emerges as an innovation in microfinance. P2P lending offers an online platform service that connects individuals looking to lend with individuals that need to borrow and then use online payment to complete this borrowing quickly. This process is characterized by decentralization, making in this way far different P2P platform from traditional banks services. In this thesis we estimate using a logistic regression model, the default risk of P2P lending, focusing on Lending Club, one the largest US loan platform. We identify the loan default determinants as credit grade, loan purpose, loan amount, home ownership, debts to income ratio, revolving credit line utilization. Also, after investigating the actual default ratio of this platform loans, we check for consistency with the estimated default risk. We find that over the entire data set the estimated default probability turn to be consistent with the actual default ratio. However, when we propose the same analysis for all different States in which Lending Club loans are issued, we find that for some of them there are large divergences between estimated default probability and actual default ratio.