Development and sustainability risks of Lithuanian consumer credit market

Abstract

In the paper dynamics of consumer credit market development in Lithuania is being analyzed during the period from 2004 to 2012. Growth of market volume has been analyzed in correlation with macroeconomic indexes of the country as well as earnings of households and the regulations set by the state. Special attention was paid to some aspects, which might cause sustainability problems of this market. Based on uniform approach applied the credit portfolio of households in various credit institutions has been analyzed in detail as well as the dynamics of bad loans. Some predictions and warnings related to potential sustainability threats have been formulated.