Consumer credit card ownership and usage practices: empirical evidence from Sri Lanka

2009 ◽  
Vol 33 (4) ◽  
pp. 436-447 ◽  
Author(s):  
Vathsala Wickramasinghe ◽  
Anurudh Gurugamage
Keyword(s):  
Sri Lanka ◽  
Empirical Evidence ◽  
Credit Card ◽  
Consumer Credit

scholarly journals Factors Impact on Consumer Credit Card Usage Behaviour: Evidence from Sri Lanka

2021 ◽  
Vol 7 (2) ◽  
pp. 146
Author(s):  
L. G. R. V. De Silva ◽  
S. S. J. Patabendige
Keyword(s):  
Sri Lanka ◽  
Credit Card ◽  
Consumer Credit ◽  
Credit Card Usage

Why Did Credit Card Balances Decline so Much during the COVID-19 Pandemic

FEDS Notes ◽  
2021 ◽  
Vol 2021 (3025) ◽  
Author(s):  
Robert M. Adams ◽  
◽  
Vitaly M. Bord ◽  
Bradley Katcher ◽  
◽  
...  
Keyword(s):  
United States ◽  
Credit Card ◽  
Consumer Credit ◽  
The United States ◽  
History Of

Consumer credit card balances in the United States experienced unprecedented declines during the COVID-19 pandemic. According to the G.19 Consumer Credit statistical release, revolving consumer credit fell more than $120 billion (11 percent) in 2020, the largest decline in both nominal and percentage terms in the history of the series.

Sociopolitical Instability and Economic Growth Empirical Evidence from Sri Lanka

2007 ◽  
Vol 4 (12) ◽  
pp. 1029-1035 ◽  
Author(s):  
Changsheng Xu ◽  
Santhirasegaram Selvarathi ◽  
Wen Xing Li
Keyword(s):  
Economic Growth ◽  
Sri Lanka ◽  
Empirical Evidence ◽  
Sociopolitical Instability

scholarly journals The Effect of Enterprise Risk Management (ERM) on Firm Performance: Evidence from the Diversified Industry of Sri Lanka

2018 ◽  
Vol 10 (1) ◽  
pp. 75
Author(s):  
Kingsley Karunaratne Alawattegama
Keyword(s):  
Firm Performance ◽  
Sri Lanka ◽  
Empirical Evidence ◽  
Negative Impact ◽  
Positive Impact ◽  
Enterprise Risk Management ◽  
Performance Information ◽  
Return On Equity ◽  
Enterprise Risk ◽  
And Control

The objective of this empirical study is to explore the effect of the adoption of ERM on the performance of the diversified industry of Sri Lanka. The extent of the adoption of ERM is assessed based on eight ERM functions recognized by the ERM integrated framework of the committee of sponsoring organization of the Treadway Commission and use return on equity as a proxy to measure firm performance. This study finds ERM supportive internal environment, risk-aligned objective setting, event identifications, and risk response have a positive impact on firm performance. However, none of those impacts were statistically significant. Surprisingly, empirical evidence reveals that risk assessment and control activities have a negative impact on the firm performance. Information & communication and monitoring functions indicate a significant impact on firm performance. Nevertheless, monitoring function shows a negative impact on the firm performance. The researcher believes this negative impact is attributable to the increased cost of monitoring activities that is crucial for a diversified business setup. This empirical evidence induces the researcher to conclude that, except for communication and monitoring, the adoption of ERM has no significant impact on the firm performance. These findings are contradictory with the findings of prior researchers.

scholarly journals Is Food Price Inflation Transitory? Empirical Evidence from Sri Lanka

2015 ◽  
Vol 11 (15) ◽  
Author(s):  
Sivarajasingham Selliah ◽  
Shri-Dewi Applanaidu
Keyword(s):  
Sri Lanka ◽  
Empirical Evidence ◽  
Food Price ◽  
Price Inflation

scholarly journals The COVID-19 Shock and Consumer Credit: Evidence from Credit Card Data

2021 ◽  
Vol 2021 (008) ◽  
pp. 1-55
Author(s):  
Akos Horvath ◽  
◽  
Benjamin Kay ◽  
Carlo Wix ◽  
◽  
...  
Keyword(s):  
Interest Rates ◽  
Credit Card ◽  
Negative Impact ◽  
Consumer Credit ◽  
Credit Cards ◽  
Sharp Decrease ◽  
Main Driver ◽  
Credit Card Data ◽  
Pandemic Severity ◽  
The Impact

We use credit card data from the Federal Reserve Board's FR Y-14M reports to study the impact of the COVID-19 shock on the use and availability of consumer credit across borrower types from March through August 2020. We document an initial sharp decrease in credit card transactions and outstanding balances in March and April. While spending starts to recover by May, especially for risky borrowers, balances remain depressed overall. We find a strong negative impact of local pandemic severity on credit use, which becomes smaller over time, consistent with pandemic fatigue. Restrictive public health interventions also negatively affect credit use, but the pandemic itself is the main driver. We further document a large reduction in credit card originations, especially to risky borrowers. Consistent with a tightening of credit supply and a flight-to-safety response of banks, we find an increase in interest rates of newly issued credit cards to less creditworthy borrowers.

Kueski: Revolutionizing Consumer Credit in Mexico

2017 ◽  
pp. 1-10
Author(s):  
Sarit Markovich ◽  
Nilima Achwal
Keyword(s):  
Financial Market ◽  
Financial Services ◽  
Scoring System ◽  
Credit Card ◽  
Consumer Credit ◽  
Credit Scoring ◽  
Loan Approval

This case asks students to step into the role of Adalberto Flores, co-founder and CEO of Kueski, one of the first companies to develop a proprietary algorithm for online loan approval in Mexico. Mexico lacks a standardized credit scoring system, making it difficult for many Mexicans to get approved for a loan or credit card. This, together with the fact that Mexicans generally do not trust traditional banks, makes Mexico an attractive opportunity for fintech companies. Growth, however, could require fintech companies to partner with traditional banks. Students assume the role of Flores to think about the benefits and risks associated with a partnership between Kueski and traditional banks. Students are also challenged to compare the structure of U.S. financial services markets with the Mexican structure and consider the implications on the sustainability of fintech companies in the two markets. The teaching note analyzes the Mexican financial market and the benefits and threats it holds for fintech companies, and outlines a framework for evaluating the risk associated with partnerships.

scholarly journals Wagner's Law in Sri Lanka: An Econometric Analysis

2012 ◽  
Vol 2012 ◽  
pp. 1-8 ◽  
Author(s):  
Mayandy Kesavarajah
Keyword(s):  
Economic Growth ◽  
Sri Lanka ◽  
Empirical Evidence ◽  
Public Expenditure ◽  
Special Focus ◽  
Annual Data ◽  
Sri Lankan ◽  
Wagner’S Law ◽  
Long Run ◽  
Wagner's Law

This study examines whether there is empirical evidence that Wagner's law holds in the Sri Lankan economy using time series annual data over the period from 1960 to 2010 for Sri Lanka, applying cointegration and error correction modeling (ECM) techniques. In particular, this study keeps a special focus to examine the validity of six versions of Wagner's hypothesis, which support the existence of long-run relationship between public expenditure and economic growth. The empirical evidence of this study indicates that while there prevail is a short-run relationship between public expenditure and economic growth, the long-run results showed no strong evidence in support of the validity of the Wagner’s law for Sri Lankan economy. Granger causality analysis also confirms this result. Therefore, the findings of this study pave to broaden this study further for a deeper understanding about the relationship between public expenditure and economic growth by giving more attention on individual items of public expenditure and by including more macroeconomic variables in the econometric model using different methodology in future.

Timing to the Statement: Understanding Fluctuations in Consumer Credit Use

2020 ◽  
Author(s):  
Sumit Agarwal ◽  
Amit Bubna ◽  
Molly Lipscomb
Keyword(s):  
Credit Card ◽  
Consumer Credit ◽  
Liquidity Constraints ◽  
Mental Accounting ◽  
Debit Card ◽  
Mixed Support

We show that consumers spend 15% more per day in the first week following the receipt of a credit card statement than in the days just prior to the statement. This increase in spending includes both an increase in the likelihood that they use the credit card in the first weeks following their statement and an increase in transaction amount on days they use the credit card. In contrast to the effect on credit card spending, debit card spending is unaffected by credit card statement issuance, suggesting that consumers are not simply switching among modes of payment. Our estimates are based on exogenous variation from bank-assigned statement dates. We propose and test several alternative explanations to this spending puzzle: optimization of the free float, salience effect of the credit card statement, mental accounting, liquidity constraints, and automatic payments. We find that the consumers most apt to spend early in the credit card cycle tend to be those who do not revolve balances and are not close to their credit limit. Thus, this paper documents a puzzle with mixed support for several alternative explanations. This paper was accepted by David Simchi-Levi, finance.

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