The Effect of Consumer Interest Rate Deregulation on Credit Card Volumes, Charge-Offs, and the Personal Bankruptcy Rate

1998 ◽  
Author(s):  
Diane Ellis
Keyword(s):  
Interest Rate ◽  
Credit Card ◽  
Personal Bankruptcy ◽  
Consumer Interest ◽  
Interest Rate Deregulation ◽  
Bankruptcy Rate

Revolving cards: A financial analysis of the credit repayment and legal implications

2021 ◽  
Vol 39 (2) ◽  
Author(s):  
Salvador Cruz Rambaud ◽  
Salvador Cruz Vargas
Keyword(s):  
Interest Rate ◽  
Credit Card ◽  
Financial Analysis ◽  
Point Of View ◽  
Excessive Amount ◽  
Nominal Interest Rate ◽  
Legal Implications ◽  
Long Duration ◽  
Very High

The framework of this paper is credit card holding by users and consumers, more specifically, the so-called revolving cards. In most cases, the true interest rate applied to a credit is much higher than its nominal interest rate. Usually, this is due to the existence of some fees to be paid by the holder, and to the process of splitting the periods of interest. However, the contracted annual interest rate of revolving cards is very high which, together with the peculiar amortization system, gives rise to an excessive amount of interests. The objective of this paper is to describe and analyze, from a legal and financial point of view, the main characteristics of the credit repayment in revolving cards. We conclude that the complete amortization of the principal needs a long duration and the payment of a high amount of interests.

scholarly journals Credit Card Rates and Consumer Switch: New Evidence

2016 ◽  
Vol 8 (12) ◽  
pp. 95
Author(s):  
Omar A. Abdelrahman
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Credit Card ◽  
Percent Level ◽  
Empirical Finding ◽  
Credit Cards ◽  
Credit Card Market ◽  
The Ohio State University ◽  
Using Data ◽  
Level Of Significance

This paper investigates the underlying determinants of consumer’s choices regarding switching credit-card balances. To estimate the likelihood that consumers switch credit cards, two logit models are estimated. Using data from the Consumer Finance Monthly (CFM) of The Ohio State University, the author finds that at the conventional 5 percent level of significance, the following variables have significance: old interest rate, new interest rate, duration of the introductory rate, balances, number of credit cards, homeownership, and age. As expected, interest rates, balances, the duration of new introductory offer rates, and homeownership have the greatest influence on why or why not people switch credit cards. The findings are consistent with the view that consumers make rational decisions in the credit card market, challenging Ausubel’s (1991) argument of credit card consumer irrationality and Calem and Mester’s (1995) empirical finding that credit card rates are sticky because consumers are irresponsive to rate cuts.

scholarly journals Effects of Interest Rate Deregulation on the Growth of Nigerian Agricultural Sector

2019 ◽  
Vol 1 (1) ◽  
pp. 107-112
Author(s):  
Opaluwa D. ◽  
◽  
Ocheni B. A. ◽  
Dauda S. N. ◽  
Adewale G. A.
Keyword(s):  
Interest Rate ◽  
Agricultural Sector ◽  
Interest Rate Deregulation

scholarly journals Factors Effecting Towards Personal Bankruptcy among Residents: Case Study in Klang Valley, Malaysia

2016 ◽  
Vol 6 (3) ◽  
pp. 98 ◽  
Author(s):  
Mahiswaran Selvanathan ◽  
Uma Devi Krisnan ◽  
Wong Chui Wen
Keyword(s):  
Financial Literacy ◽  
Credit Card ◽  
Pearson Correlation ◽  
Simple Random Sampling ◽  
Money Management ◽  
Personal Bankruptcy ◽  
Notable Increase ◽  
Klang Valley ◽  
The Government

In Malaysia, there is a notable increase in the number of bankruptcy cases. The personal bankruptcy trend has become one of the major concern to the government. The purpose of this research is to study the factors lead to personal bankruptcy. This research tested the few factors effect on personal bankruptcy based on Klang Valley residents. The research used a quantitative approach and data was gathered from survey questionnaire. The questionnaire measurement quantify the respondent’s response with the help of five point Likert scale. Respondents was designated to respond on the questionnaire by simple random sampling techniques. Data collected was analyzed using Pearson correlation coefficient and multiple regression analysis. The data has been presented in the form of tables. Relationship that were assessed; credit card debts, money management, financial literacy and non-performing loan effects towards personal bankruptcy. The finding shows that there are positive relationship between money management, financial literacy and non-performing loan. 

Indian Banking Sector Reforms: Review and Prospects

2005 ◽  
Vol 8 (2) ◽  
pp. 167-189 ◽  
Author(s):  
Tae Hwan Yoo
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Foreign Exchange ◽  
Banking Sector ◽  
Banking Industry ◽  
Indian Government ◽  
Reform Policy ◽  
Public Sector Banks ◽  
Positive Effects ◽  
Interest Rate Deregulation

Development in the financial sector, in particular, the banking sector, plays a key role in stimulating and stabilizing economic growth. Since the foreign exchange crisis in 1991, India has undertaken banking sector reforms. This paper focuses on the following two issues. First, I provide an overview of development in the banking sector over the years, especially after the implementation of the reform policy programs. In order to show the evolution of the Indian banking sector, I examine the reserve ratios reduction, interest rate deregulation, and ratios of non-performing assets. Second, this paper investigates the performance of banking groups by comparing the degree of profitability, and the soundness and efficiency of banks in India. In conclusion, while reform policies have had positive effects on the performance of banks, especially Public Sector Banks in India, the Indian government has to take further steps to deregulate and liberalize the banking industry.

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