scholarly journals An Empirical Investigation on Credit Card Repayment Pattern of Academicians in Malaysia

2018 ◽  
Author(s):  
Kuah Yoke Chin ◽  
Wei Chooi Yi ◽  
Chin Lai Kwan ◽  
Chia Mei Si
Keyword(s):  
Credit Card ◽  
Empirical Investigation ◽  
Credit Cards ◽  
Tertiary Institution ◽  
Moderating Variables ◽  
Personal Attitude ◽  
Credit Card Market ◽  
The Government ◽  
Informed Society ◽  
Moderating Role

The credit card market has witnessed tremendous growth resulting from a paradigm shift in technology. The genuine usage of credit cards as a form of convenience has diverged to overspending, irresponsibility, revolving liability and bankruptcy. This implies that possession of credit cards has brought about a change in users’ repayment behavior. Thus, this study aims to determine academicians’ credit card repayment pattern in a private tertiary institution in Malaysia. The dependent variable is the repayment pattern and the independent variables that serve as the attributes include personal attitude and spending pattern, while, gender and parenthood serve as the moderating variables. Findings revealed that personal attitude and spending pattern were important attributes in determining the repayment pattern among the academicians. Gender and parenthood were found to play a moderating role in the repayment pattern. Findings from this study is expected to facilitate the government and credit card companies to work towards nurturing a financially healthier and informed society, and also to  each out positively to the younger generations through the influence of the academicians.  

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.

Price Ceilings as Focal Points for Tacit Collusion: Evidence from Credit Cards

2003 ◽  
Vol 93 (5) ◽  
pp. 1703-1729 ◽  
Author(s):  
Christopher R Knittel ◽  
Victor Stango
Keyword(s):  
Credit Card ◽  
Focal Point ◽  
Credit Cards ◽  
State Level ◽  
Tacit Collusion ◽  
Focal Points ◽  
National Integration ◽  
Credit Card Market ◽  
Using Data ◽  
Perverse Effect

We test whether a nonbinding price ceiling may serve as a focal point for tacit collusion, using data from the credit card market during the 1980’s. Our empirical model can distinguish instances when firms match a binding ceiling from instances when firms tacitly collude at a nonbinding ceiling. The results suggest that tacit collusion at nonbinding state-level ceilings was prevalent during the early 1980’s, but that national integration of the market reduced the sustainability of tacit collusion by the end of the decade. The results highlight a perverse effect of price regulation.

Do education sector credit cards differ with other credit cards in Malaysia?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Md. Mahmudul Alam ◽  
Yusnidah Binti Ibrahim ◽  
Jaka Sriyana
Keyword(s):  
Credit Card ◽  
Credit Cards ◽  
Education Sector ◽  
Business Managers ◽  
Content Type ◽  
Staff Members ◽  
Secondary Sources ◽  
Different Types ◽  
Credit Card Market ◽  
Financial Regulatory

Purpose The credit card market is very large and segmented by targeting different types of consumers. One type of credit card is one that specifically targets people in the education sector, for instance, students, teachers and other staff members. This study aims to compare the features of education and other credit cards in Malaysia. Design/methodology/approach The study analyzes data concerning 234 credit cards by using descriptive statistics and a one-way analysis of variance test. Findings Out of 234 credit cards, this study found only two credit cards especially target education sector customers. The study evaluated 13 features of these credit cards and found that only 2 features are statistically significantly different from other conventional credit cards in Malaysia. These features are interest rate and cash withdrawal charge fees. Originality/value This is an original study based on the compilation of data from secondary sources. The findings will provide valuable insights to financial regulatory policymakers, academics and business managers.

scholarly journals Do Banks Pass through Credit Expansions to Consumers Who want to Borrow?*

2017 ◽  
Vol 133 (1) ◽  
pp. 129-190 ◽  
Author(s):  
Sumit Agarwal ◽  
Souphala Chomsisengphet ◽  
Neale Mahoney ◽  
Johannes Stroebel
Keyword(s):  
Credit Card ◽  
Credit Cards ◽  
Credit Expansion ◽  
New Approach ◽  
Credit Score ◽  
Credit Card Market ◽  
Marginal Propensity ◽  
Pass Through ◽  
The Impact ◽  
Household Borrowing

Abstract We propose a new approach to studying the pass-through of credit expansion policies that focuses on frictions, such as asymmetric information, that arise in the interaction between banks and borrowers. We decompose the effect of changes in banks’ cost of funds on aggregate borrowing into the product of banks’ marginal propensity to lend (MPL) to borrowers and those borrowers’ marginal propensity to borrow (MPB), aggregated over all borrowers in the economy. We apply our framework by estimating heterogeneous MPBs and MPLs in the U.S. credit card market. Using panel data on 8.5 million credit cards and 743 credit limit regression discontinuities, we find that the MPB is declining in credit score, falling from 59% for consumers with FICO scores below 660 to essentially zero for consumers with FICO scores above 740. We use a simple model of optimal credit limits to show that a bank’s MPL depends on a small number of parameters that can be estimated using our credit limit discontinuities. For the lowest FICO score consumers, higher credit limits sharply reduce profits from lending, limiting banks’ optimal MPL to these consumers. The negative correlation between MPB and MPL reduces the impact of changes in banks’ cost of funds on aggregate household borrowing, and highlights the importance of frictions in bank-borrower interactions for understanding the pass-through of credit expansions.

scholarly journals Perlindungan Hukum Nasabah Kartu Kredit dalam Perspektif Undang-Undang Nomor 8 Tahun 1999

2021 ◽  
Vol 2 (1) ◽  
pp. 145-149
Author(s):  
Nyoman Triananda Prayoga ◽  
I Nyoman Sujana ◽  
Ni Made Puspasutari Ujianti
Keyword(s):  
Consumer Protection ◽  
Credit Card ◽  
Credit Cards ◽  
Legal Protection ◽  
Legal Norms ◽  
Legal Rules ◽  
Protection Legislation ◽  
Plastic Card ◽  
The Government ◽  
Legal Consequences

At this time the technology has been developing rapidly, as well as means of payment. If the first payment can only be done with cash, current payment already can be done by credit card. When the first buyers and sellers have to meet directly, unlike with the current buyers no longer have to meet with the seller directly. A credit card is a plastic card issued by a bank that provides credit services. But many cases credit card used another person, which is possible because the card is missing or scams online, these problems can be analysed as follows: 1) What kind of legal protection for customers according to credit card Consumer Protection Legislation? 2) How the legal consequences if a credit card were used by someone else? This presentation uses research methods are normative, legal rules and legal norms according are the norm in the form of orders or prohibitions it in accordance with the principle of the law and whether one's actions is in compliance with legal norms with the approach of legislative and conceptual. This research requires a source of secondary legal materials as primary legal materials. Form of legal protection given by the Government in the form of legislation, but the legislation has not been effective. Legal consequences if the credit card used another person's credit card, the customer must still pay the Bills that go up to the customer to report in writing. The Government should streamline the laws and make special laws about credit cards as well as the bank and the customer must be open.

scholarly journals The Good, the Bad and the Ugly of Islamic Credit Cards

2021 ◽  
Vol 9 (1) ◽  
pp. 43
Author(s):  
Zaimy Johana Johan ◽  
Mohd Zainee Hussain
Keyword(s):  
Market Share ◽  
Financial Services ◽  
Credit Card ◽  
Banking System ◽  
Credit Cards ◽  
Islamic Finance ◽  
Industry Growth ◽  
Growth Area ◽  
The Government ◽  
And Performance

The Malaysian Islamic financial services have developed and thrived in the competitive domestic and global financial market especially in the last three decades.  The Government has provided the industry conducive enabling environment to catalyse the industry growth and development. Islamic finance has gained prominence and been identified as the growth area in the nation’s financial sector.  The Bank Negara Malaysia Annual Report 2020 published on 3 April 2020 amongst others highlights that with an advanced regulatory framework already in place, Islamic finance is poised to play a more prominent role in the coming period, particularly in its potential to apply shariah principles to expand social finance and address market gaps in innovative ways.  With a range of innovative shariah compliant products and services, the halal financial services have gained market acceptance from both Muslims and non-Muslims alike, albeit with different levels of acceptance according to the products.  Specifically, to a certain degree it appears that the market has been more receptive of other Islamic financial services such as loans for various purposes including purchases of securities, properties, vehicles; working capital and even personal loans than the credit cards.  According to the Bank Negara Monthly Statistical Bulletin: Monthly Highlights and Statistics in September 2020, as of September 2020, Islamic banks had disbursed 35.7% or RM651.4 billion of the total loans in the banking system in September 2020.  The Islamic credit cards however have a lower market share of 10.2% or RM3.7 billion of total credit card transactions.  The slower growth pace, lower market share and performance of Islamic credit cards vis–a-vis conventional credit cards, and also compared with other Islamic financial products merit further scrutiny and analysis to help better understand the issues pertinent the growth of the Islamic credit cards. Issues such as why other Islamic loans and hire purchase products have performed better; why the slower growth of Islamic credit cards; customers and market expectation of Islamic credit cards; Islamic credit card product development and marketing strategies need to be carefully examined in order to overcome Islamic credit card growth conundrum.

CONSUMER PREFERENCES AND REGULATIONS IN CREDIT CARD MARKETS: EVIDENCE FROM TURKEY

2021 ◽  
pp. 1-27
Author(s):  
G. GULSUN AKIN ◽  
AHMET FARUK AYSAN ◽  
EZGI ÖZER ◽  
LEVENT YILDIRAN
Keyword(s):  
Market Power ◽  
Credit Card ◽  
Choice Model ◽  
Consumer Preferences ◽  
Credit Cards ◽  
Differentiated Products ◽  
Private Banks ◽  
Credit Card Market ◽  
Credit Card Pricing ◽  
Public Banks

In this paper, we analyze the demand side of the credit card market. Using unique survey data and a discrete choice model, we uncover consumer preferences for all price and nonprice features of credit cards. Our results provide evidence for an alternative explanation for the credit card pricing puzzles. We show that consumers view credit cards as highly differentiated products with both bank-level and card-level nonprice features. When selecting their credit cards, they predominantly prioritize these nonprice features over prices. Although private banks charge higher prices for their credit card services than other banks, the majority of consumers choose them as issuers due to their bank-level and card-level nonprice features. Consumers who prioritize prices tend to choose the credit cards of participation or public banks. Widespread branch/automated teller machine networks as bank-level features and installments, bonuses/rewards/miles and the prestige of the card as card-level features are particularly effective in consumers’ decisions to choose private banks as issuers. Such strong preferences for nonprice features seem to furnish private banks with market power. Hence, we argue that underlying issuers’ market power is also this differentiated nature of credit cards, for which regulatory measures are not self-evident.

scholarly journals Developing credit card market from Vietnamese consumers’ perspective

2020 ◽  
Vol 7 (1) ◽  
Author(s):  
Vuong Duc Hoang Quan ◽  
Trinh Hoang Nam
Keyword(s):  
Credit Card ◽  
Positive Impact ◽  
Behavioral Control ◽  
Empirical Studies ◽  
Credit Cards ◽  
Subjective Norm ◽  
Perceived Usefulness ◽  
Perceived Behavioral Control ◽  
Factors Affecting ◽  
Credit Card Market

This study aims to identify the factors affecting the intention to use credit cards in Vietnam. Previous empirical studies on planned and actual behaviors showed that customers decide to own and use credit cards through their awareness of credit cards, including perceived usefulness, perceived behavioral control and subjective norm. To collect the data, we use structured self-administered questionnaires from 426 respondents making payments through bank accounts. The findings show that perceived usefulness, perceived behavioral control and subjective norm have a positive impact on credit card adoption among Vietnamese consumers. This study also supposes that customers from different demographics have different intentions to use credit cards. Some recommendations are made to improve the effects of banks’ policies on credit card application and use.

Testing The Factors Affecting The Development Of Credit Cards In The Vietnam Banking Industry

2014 ◽  
Vol 2 (1) ◽  
pp. 40-53
Author(s):  
Khanh C.H. ◽  
Tri D.N. ◽  
Anh T.T.N. ◽  
Dang T.K.C.
Keyword(s):  
Credit Card ◽  
Technology Innovation ◽  
Rating Scale ◽  
Banking Industry ◽  
Credit Cards ◽  
Customer Behavior ◽  
Factors Affecting ◽  
Promotion Policies ◽  
Credit Card Market ◽  
Product Creation

Objective - In recent years, banks have been very interested in encouraging non-cash payment activities in Vietnam. Especially, payment by credit card has recently become a popular consumer behavior in the rural area. This paper aims to evaluate the development of credit cards in the Vietnam banking industry, particularly in Ho Chi Minh City and identify the significant factors affecting the credit card market. Methodology/Technique - The authors conduct questionnaire survey with Likert-style rating scale to get the primary data. Exploratory Factor Analysis (EFA), Kaiser-Meyer-Olkin (KMO) and Bartlett' test are also employed to test correlation between independent variable (the development of credit cards in Vietnam) and five dependent variables (technology innovation, customer behavior, product creation, promotion policies and critical framework). Findings - The findings underline that the development of credit cards in the Vietnam banking industry is significantly influenced by customer behavior, promotion policies, critical framework, product creation, and technology innovation. Although there are some problems that need to be improved, Vietnam's credit card market has still been assessed as an outstanding potential market. Novelty - In this paper, recommendations are made to discover ways to improve these problems and continue developing the credit card market in Vietnam. Type of Paper: Review Type of Paper - Credit Card, Vietnam Banking Industry

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