The Heterogeneity of Credit Dollarization at the Household Level

This paper examines the heterogeneity of loan dollarization at the individual level in Peru. Loan dollarization is characterized using a unique database resulting from the merger of the Consolidated Credit Registry (RCC) and the National Household Survey (ENAHO); this resulting database makes it possible to identify the amount and observable characteristics of each loan and each individual who takes out a loan. The analysis finds that dollarization varies according to individual characteristics, being higher among high-income, older, and more educated individuals. At the regional level, Lima has the highest dollarization rates, and by employment type, formal-sector workers have the highest proportion of dollar-denominated loans.