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Berlinger Edina, Kiss Hubert János és Khayouti Sára cikke megjelent a Finance Research Letters folyóiratban


Loan forbearance takeup in the Covid-era
– The role of time preferences and locus of control

Berlinger Edina, Kiss Hubert János, Khayouti Sára

Finance Research Letters
Volume 50, December 2022


  • Loan forbearance takeup is associated with time discounting.
  • More patent individuals are less likely to resort to loan forbearance.
  • Savings and financial difficulty can be potential channels.
  • However, time discounting affects loan forbearance beyond those channels.
  • Loan forbearance takeup is not associated with present bias or locus of control.


During the COVID-19 pandemic, many countries eased the burden on borrowers through loan forbearance. Using a representative sample of the Hungarian adult population, we investigate whether time preferences and locus of control are associated with loan forbearance takeup. We find evidence that time discounting correlates with the resort to forbearance: ceteris paribus, more patient individuals are less likely to take up forbearance, even after controlling for their present/future bias, risk aversion, locus of control, demographic characteristics, educational level, financial status, and the effects of the pandemic. However, present bias and locus of control are not significantly associated with loan forbearance.

Keywords: Loan forbearance, Locus of control, Present bias, Time discounting, Time preferences

JEL codes: G41, G51