Delinquency and Portfolio Quality in the Peruvian Financial System

The main objective is to determine the relationship between delinquency and portfolio quality in the Peruvian financial system. As for financial institutions dedicated to microenterprises as of December 2019 the outstanding placements amounted to S/. 4024 million (including contingent) which represents 3.32% of the total placements of the banking system and 27.8% of the placements to small and micro enterprises in the banking system. In addition there is a behavior of the current portfolio that in 2018 had S/39176573 passed to 2019 with a total of S/44708395 showing a growth of 14.1% and the case of the portfolio at risk went from S/3472347 in 2018 to S/4588202 in 2019 which represents a growth of 43.50% this reality is worrying and it is necessary to identify the relationship of delinquency and portfolio quality in financial institutions of microenterprise.