The Consumer in Commercial Banking. By H. C. Jennings. New York: Consumer Credit Institute of America, Inc., 1939. 158 pp. $2.00

Inefficient banking systems will affect the Indonesian economy resulting in a high lending rate structure which impacts the cost of capital in real sectors. This study aims to determine if the high lending rates in Indonesia are caused by the high inflation rate and bank inefficiencies. Using monthly panel data analysis from four categories of commercial banking in Indonesia for the period January 2009-December 2017, the results of the study show that operating expenses operating income (OEOI) and net interest margin (NIM) factors, as a measure of efficiency, have a positive impact on loan interest rates for working capital loans, investment loans and consumer loans. Furthermore, inflation rate has a positive effect on loan interest rates for working capital and investment loans only. However, this contrasts with consumer credit where the inflation rate has a negative effect on consumer credit rates. This might be attributed to the fact that interest rates for consumer credit consider default risk factors and high demand rather than inflation factors.

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The “Everything Card” and Consumer Credit in the United States in the 1960s

The Business History Review ◽

10.1017/s0007680511000808 ◽

2011 ◽

Vol 85 (3) ◽

pp. 551-575 ◽

Cited By ~ 5

Author(s):

Christine Zumello

Keyword(s):

New York ◽

Commercial Bank ◽

Credit Card ◽

Consumer Credit ◽

Credit Cards ◽

The United States ◽

Retail Banking ◽

Mass Consumption ◽

Legislative Action ◽

The 1960S

First National City Bank (FNCB) of New York launched the Everything Card in the summer of 1967. A latecomer in the field of credit cards, FNCB nonetheless correctly recognized a promising business model for retail banking. FNCB attempted not only to ride the wave of mass consumption but also to capitalize on the profit-generating potential of buying on credit. Although the venture soon failed, brought down by the losses that plagued the bank due to fraud, consumer discontent, and legislative action, this final attempt by a major single commercial bank to launch its own plan did not signify the end of credit cards. On the contrary, the Everything Card was a harbinger of the era of the universal credit card.

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The Expansion of the New York Securities Market at the Turn of the Century

The Business History Review ◽

10.2307/3114443 ◽

1981 ◽

Vol 55 (1) ◽

pp. 75-85 ◽

Cited By ~ 7

Author(s):

Gene Smiley

Keyword(s):

New York ◽

Interest Rates ◽

Commercial Banking ◽

Turn Of The Century ◽

Business History ◽

Securities Market ◽

Securities Markets ◽

Financial Activity ◽

Industrial Companies ◽

Active Interest

Since the landmark article of Thomas Navin and Marian Sears on the rise of the market for industrial securities in the Business History Review (XXIX, June 1955), there has been an active interest in the causal relationship between the remarkable upsurge in corporate mergers of industrial companies early in this century, and the greater activity of the securities markets. Professor Smiley adds to this literature with a study of interest rates and the growth of activity in what contemporaries called “financial banking” (lending money for transactions in securities) as opposed to commercial banking. There are limits to the inference of cause and effect relations from financial activity, however, and historians must continue to study these phenomena merger by merger in order to draw conclusions as to the reasons for them.

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