Do Credit Cards Really Reduce Aggregate Money Holdings?

This paper discusses whether the use of credit cards reduces aggregate money holdings in an economy. Applying and modifying the Baumol-Tobin model (Baumol Quarterly Journal of Economics 66:545–556, 1952 and Tobin Review of Economics and Statistics 38(3):241–247, 1956), it studies how much money a credit card bank would normally maintain to support retail trade, and shows that whether or not the use of credit cards actually reduces the aggregate demand for money depends on how often consumers visit the bank and how long it takes to clear a check. With innovations in the banking industry such as ATMs, online banking, and other electric funds transfer services, the cost of visiting banks (i.e., switching funds between a checkable account and an interest-earning account) is now very low. For the whole economy, as a result, the use of credit cards may not necessarily reduce aggregate money holdings.     

Consumer Credit Risk Management in an Emerging Market： The Case of China

I. Introduction By any measure, China is now the world hottest economy, with an astonishing annual real GDP growth rate of 9 percent from 1991 to 2003 and with the world’s largest population of nearly 1.3 billion people. As one of the world’s largest and fastest growing economies,Consumer Credit Risk Management in China87 ?2006 The Authors Journal compilation ?2006 Institute of World Economics and Politics, Chinese Academy of Social Sciences there are tremendous opportunities for glo…     

The effect of bank account ownership on credit and consumption: Evidence from the UK

This article examines the causal effects of bank account ownership on credit access and consumption by isolating an exogenous change in account ownership produced by an electronic transfer mandate in the universal UK Child Benefit program. Comparing households with and without children finds that the mandate substantially affected banking behavior, with an 8.6% relative increase in transaction account ownership. When households transition into account ownership, results indicate large increases in credit card ownership (89%), and household durable goods (55%). Similar changes are not seen in loan use, weekly expenditures, or vehicle ownership. Additional evidence from a panel data set indicate declines in the use of fringe bank credit, informal loans, and debt after households transition into bank account ownership. In total, evidence suggests that an important effect of owning a bank account is improved access to credit cards which enables durable good consumption.     

Credit Contagion and Trade Credit: Evidence from Small Business Data in Japan

The present study investigates whether credit contagion leads to a decrease in trade credit for small businesses. In 1997–1998, the Japanese economy experienced a deep recession, and the domino effect caused an increase in the number of dishonored bills and bankruptcy filings. During a period of credit contagion, the possibility of default increases for firms with more financial claims and lower cash holdings. We find that during a recession, trade payables for small businesses with higher trade receivables and lower cash holdings are reduced. The hypothesis that the effects of credit risk on trade payables are weakened is not supported.     

Depressed access to formal finance and the use of credit card debt in Chinese SMEs

SMEs (small and micro enterprises) in developing countries are in general financially depressed; business owners thus resort to other financial instruments (here, personal credit cards) when access to bank loans is prohibited. By investigating two different types of SMEs (namely, informal businesses and formal SMEs) in China, we find that SMEs turn to credit card debt as a substitute when they fail to obtain bank loans. Specifically, we find that households with informal businesses are more likely to use credit cards when their businesses are financially constrained. We also find that when financially constrained, formal SMEs are more likely to carry credit card debt and are also carrying more. This relationship persists after selection issues are addressed. However, credit card debt and bank loans are hardly perfect substitutes as these two instruments may function differently. Consistently, we find that even with bank loans, formal SMEs still carry substantial credit card debt. Additionally, compared to those with no fund need and thus no bank loan, formal SMEs with bank loans are carrying more credit card debt.     

A Review of Institutional Alternatives to Collateralized Lending

Abstract: Rural producers’ access to formal finance has often been limited by their inability to provide collaterals, particularly in the form of registered or certified land titles and tenancy contracts or assets which are auctionable as well as by laws that make foreclosure difficult. This paper reviews some of the alternative institutional arrangements (possibilities) for reducing and overcoming collateral requirements such as third party guarantees, ownership of tradeable assets, credit guarantee schemes, group lending, credit‐savings linkages, incremental and loan repayment‐dependent lending, portfolio diversification and an efficient legal system for contract enforcement. It also specifies the land policy and tenure reforms that are desirable, especially in the direction of formal land titling or legally specified rights to the use and ownership of lands, the consolidation of land holdings and the provision of proper cadastres for land and assuring that titles are secure.     

Current Issues in Financial Economics: An Overview

The purpose of this paper is to provide an overview of a number of contemporary issues in financial economics. The issues analyzed include causes of bank failures, financing of small and medium size enterprise financing, convergence of international equity markets, the importance of CEOs to shareholders, the effects of Accounting Standard 158, the impact of credit cards on aggregate money holdings, and measures of industrial concentration.     

Gender differences in formal credit approaches: rural households in Vietnam

In Vietnam, women have poorer access to formal credit than men. This article determines the extent to which borrowing constraints restrict women’s access to formal credit and identifies the socioeconomic characteristics that determine formal credit discrimination. The study used secondary data from the Vietnam Access to Resources Household Survey (VARHS) published in 2013–14, and analysis was undertaken by econometric approaches such as logistic and multiple linear regression models and propensity score matching methods. The results show that among those participants who successfully obtained credit, approximately 85 per cent of women obtained less credit than men; and the amount of credit that women obtained was also less (on average, approximately 1.8 per cent less). Gender, number of years of schooling, marital status, participation in agricultural activities, off‐farm employment, and ownership of agricultural land for a male‐headed household positively influenced discrimination in obtaining credit and the amount of credit obtained. Moreover, the propensity score matching results found that the average increase in the credit obtained by males was 220,000 Vietnamese Dong (VND) and this is mainly due to discrimination in favour of men. The results suggest that policy action is needed to avoid discrimination in credit disbursement on the basis of gender.     

浅析金融海啸中的信用卡业务风险及防范预警对策

随着我国改革开放的深入和金融市场的发展,商业银行的信用卡发行量迅速增长,并且已经成为银行利润的重要来源之一。但是从2008年美国次贷危机引起的全球金融海啸可以看出,银行的信贷业务深刻影响着经济的健康发展,信用卡业务中的潜在风险威胁着国民经济的稳定。本文从对我国信用卡业务发展现状的分析出发,针对信用卡的风险特点和目前信用卡风险管理中存在的问题进行了重点研究,提出了信用卡的风险防范及预警措施。     

Access to agricultural extension,credit and markets among small‐scale farmers in southern Zambia

This article used survey data to determine the extent to which small‐scale farm households in the Choma district of Zambia's southern province have access to agricultural extension services, credit and markets. The findings show that the majority of the sample households had access to extension and credit services. They also showed that the resource base or wealth of the households — as manifested by farm size, livestock ownership and human capital or management capacity (the household head's training in agriculture) — is a significant factor when accounting for differential access to extension and credit. On the other hand, study findings suggest that farm households are facing problems with marketing their produce under the liberalised agricultural marketing system. Based on these findings, the article discusses recommendations for providing solutions to some of the problems affecting small‐scale farmers in accessing production services.     

An analysis of factors affecting access to credit in Lesotho's smallholder agricultural sector

The agricultural sector in Lesotho is underperforming mainly due to the inability of smallholders to move from traditional agriculture to a more scientific and technology-based one. Among the challenges inhibiting the ability of smallholders to make the step up is access to financial services, especially credit. The purpose of this study was to examine the factors that may influence the ability of smallholders to access finance by making use of a logistic regression model within the principle component regression framework. The results revealed that the ability of smallholders to access finance, and the potential to make the transition towards a more scientific and technology-based agriculture sector, is influenced by the level of farm and non-farm income, remittances and pension, farm size, availability of family labour, land ownership, savings and repayment ability. The results present important information in terms of guiding institutional arrangements needed to improve credit availability in Lesotho.     

Credit Access,the Costs of Credit and Credit Market Discrimination

Since the early 1990s, credit expanded relative to income, especially after 2001. It is hypothesized that traditionally uneven credit access and gaps in the costs of credit by demographic characteristics shrank during this period. Relying on data from the Federal Reserve’s Survey of Consumer Finance, this study looks at financial constraints, the costs of credit and a number of contributions to the costs of credit, including sources and types of loans. The results indicate that taste-based discrimination and structural discrimination may have persisted and possibly increased over time. Gaps in credit access and costs of credit have widened by race, remained high by income, but shrank by ethnicity. Part of the overall differences in credit access was a varying reliance on professional information when making decisions on debt.

信用卡透支纠纷的法律适用

近年来信用卡透支纠纷急剧上升。信用卡透支纠纷法律关系相对简单,但是在审判实践中还有很多问题难以处理。本文分别从原告主体资格、管辖法院、违约的界定、利息、复息与合法性违约金的调整、诉讼费用与持卡人应诉差旅等费用的承担、举证责任分配与转移、诉讼时效中断的认定、信用卡透支案件中的刑民交叉问题等几个方面进行针对性的分析与讨论。     

Signalling Creditworthiness: Land Titles,Banking Practices,and Formal Credit In Indonesia

Many land titling programs worldwide have produced lacklustre results in terms of achieving access to credit for the poor. This may reflect insufficient emphasis on local banking practices. Bankers commonly seek to ensure repayment by using methods other than securing collateral, such as targeting borrower characteristics that, on average, improve repayment rates. Formal land titles can signal these important characteristics to the bank. Using a household survey from Indonesia, we provide evidence that formal land titles have a positive and significant effect on access to credit and that at least part of this effect is best interpreted as an improvement in information flows. These results stand in contrast to the prevailing notion that land titles function only as collateral. Analysts who neglect local banking practices may misinterpret the observed effect of systematic land titling programs on credit access because these programs tend to reduce the signalling value of formal land titles.     

我国信用卡盈利能力不足的原因及对策

与美国信用卡盈利模式相比,我国商业银行信用卡盈利能力不足的原因,主要是没有达到规模效益、定价不合理、征信缺失等,文章在此基础上提出了相应的对策和建议。     

农业信贷限制与发展模式初探

现在的农业信贷市场上存在着诸多问题,本文重点分析了贷款利率的上浮限制对农业贷款量的影响,指出在一定程度上影响了农业贷款的增长。并进一步从农户角度探讨了降低农业贷款风险的模式——农村合作经济组织,创新性地提出了农业贷款市场中存在的Backward bending,最后给出了相应的对策与建议。     

THE SHORT-TERM POVERTY IMPACT OF SMALL-SCALE,COLLATERAL-FREE MICROCREDIT IN INDONESIA: A MATCHING ESTIMATOR APPROACH

Indonesian microfinance is primarily operated by for-profit commercial banks, characterized by large-scale loans that require collateral. In 2003, the largest nongovernmental organization in the country introduced much smaller-scale loans without a collateral requirement. This scheme is commercialized but potentially more suited to the credit demands of the poor. Applying propensity score matching with the difference-in-difference method, this paper examines whether the emerging microcredit scheme has been successful in targeting and improving the welfare of the poor in the one year following loan disbursement. The results show that although collateral ownership is not an important determinant of participation, relatively wealthier families gain access to microcredit. The impact of microcredit on various household outcomes is generally statistically insignificant, except for sales of nonfarm enterprises for the nonpoor and schooling expenditures for the poor. This implies that the microcredit scheme under study might not have an immediate impact on poverty alleviation.     

信用利差的影响因素文献综述

现有的研究表明,影响信用利差的因素是多方面的,既包括信用风险因素,也包括宏观因素、股票市场表现等非信用风险因素。文章对比分析了信用利差量化研究的典型方法,并从信用风险因素、宏观因素、股票市场影响等几个角度综述了对信用利差影响因素的主要文献。通过对比分析,文章发现上述因素对不同等级债券的影响程度存在一定程度的差异。     

论农村信用社的产权多元化

信用社有着自己的基本特征。中国农村信用社实践中存在三大误区:与集体经济相提并论;信用中介与一般中介特征相混淆;改革中出现行政化、机关化问题突出。因此,进行农信社的产权多元化是关键。本文分析的逻辑表明,我国农信社的改革应坚持两条道路,一是将多数农信社改造为商业银行;二是按照合作原则对部分农信社改造成真正意义上的信用社组织。     

Social networks,rice value chain participation and market performance of smallholder farmers in Ghana

This paper examines the impact of rice value chain participation and social networks on smallholder farmers' market performance outcomes (paddy price, quantity of paddy traded, and net returns), using data from a recent survey of 458 smallholder rice farmers in northern Ghana. We employed a treatment effects model to account for potential selection bias associated with observable and unobservable factors. The empirical results reveal that smallholder farmers' participation in a rice value chain is associated with increased paddy price, quantity traded, and net returns. We also find that value chain participation decisions and market performance are positively and significantly influenced by social networks. The empirical results also suggest that sex, farm size, mobile phone ownership, and access to credit significantly increase paddy prices, quantity traded, and net returns of smallholder rice farmers in the value chain.