Consumers' attitudes and intentions towards credit card usage in an advanced developing country

Kaynak, Erdener; Harcar, Talha

doi:10.1057/palgrave.fsm.4770038

Cited by 66 publications

(122 citation statements)

References 10 publications

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“…Hidden loan contracts impose a negative externality because the unseen debt increases the probability of default on each loan. The same remarks on growing problem of multiple loan contracting has been well documented, for example, in Turkey (Kaynak and Harcar, 2001), South Africa (Daniels, 2004), and Central America (McIntosh and Wydick, 2005). Through the CRB report, lenders are in a position to identify the financial burdens or responsibilities of their borrowers as well as their commitment and capability of fulfilling them.…”

Section: Total 35 100mentioning

confidence: 89%

“…Typically, accounts that are 120 or more days past due and accounts with other derogatory are grouped together and termed as major derogatory or seriously delinquent. Accounts with less severe delinquencies are typically termed as minor delinquencies addition to personal characteristics and credit account information, credit reporting agency data include information derived from monetary related public records and reports from collection agencies (Kaynak, 2001). …”

Section: Empirical Reviewmentioning

confidence: 99%

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An Assessment of the Role of Credit Reference Bureau in Influencing Customer Credit Access in Mitigating Against Credit Default in Commercial Banks in Kenya

Munene¹,

Nzioki²,

Nyamache³

2017

IJRM

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The study examined the role of Credit Reference Bureau (CRB) in influencing customer credit access in mitigating default risk among commercial banks in Kenya. The study was based on the theories of Adverse Selection and Hazard. The study used a Causal-Comparative descriptive survey design. The target population of the study consisted of all the 43 licensed commercial banks in Kenya and the three licensed credit reference bureaus in Kenya under the Banking Act. The researcher used a census of all commercial bank headquarters bank managers and the three headquarters credit reference bureau managers. To collect primary data, the researcher used questionnaires. Secondary data were collected from CBK loan books and CBK annual Bank supervisory reports. Data was analysed using SPSS and results presented using graphical systems. The researcher used descriptive statistics, which included the mean, median standard deviation and range to show the default rate. The inferential statistical tests comprised correlation, ANOVA regression and Chi-square analysis to test hypothesis. P -values yielded were less than 0.05, which indicated that the role played by Credit Revenue Bureau in influencing customer access to credit and mitigation of Credit Default Rate was significant among commercial banks in Kenya.Key words: credit reference bureau, credit, credit access, credit default rate and commercial banks Corresponding Author: Ruthwinnie Njeri Munene INTRODUCTIONFinancial institutions are facing an enormous risk of NPLs noting that larger loans have greater risk exposure, so the variable costs per-dollar is higher. If lenders do not take extra care, there could be more loan defaults. CRB enables banks to determine credit worthiness of their borrowers and therefore reducing the loan default risk. In this respect CRB assists in first, sharing information on default among banks; secondly, eliminating corrupt borrowers and thirdly to provide commercial professional credit reference to prospective foreign investors; and also to identify credible borrowers based on known history and character (Bofondi and Gobbi , 2003) Credit Reference Bureau provides detailed information on a person"s credit history, including information on their identity, credit accounts and loans, bankruptcies and late payments and recent inquiries. Other information shared include: proven frauds and forgeries, cheque kiting, false declarations and statements, receiverships, bankruptcies and liquidations, credit default and

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Section: Total 35 100mentioning

confidence: 89%

Section: Empirical Reviewmentioning

confidence: 99%

An Assessment of the Role of Credit Reference Bureau in Influencing Customer Credit Access in Mitigating Against Credit Default in Commercial Banks in Kenya

Munene¹,

Nzioki²,

Nyamache³

2017

IJRM

View full text Add to dashboard Cite

show abstract

“…As a measure of education and literacy, we introduce the percentage of college enrolments and the books published scaled by population. Kaynak and Harcar (2001) claim that card usage is more prevalent among urban and semi-urban areas. Traditional consumers who reside in rural areas may still prefer cash transactions.…”

Section: Robustness Analysismentioning

confidence: 99%

Effects of institutional environment and technology development on payment choice

Callado-Muñoz

Hromcová

Utrero-González

2015

Technological and Economic Development of Economy

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Abstract. The purpose of this paper is to analyze the combination of institutional factors and technology advances as determinants for the choice of payment instruments. The theoretical set up suggests that countries that enter into a new institutional environment adopt the attitudes of the accepting group towards the payment choices as a consequence of institutional pressure and technology development. We apply the results of the model to the European Union enlargement process of 2004. Our findings confirm the relevance of both institutional environment and technology development in retail payment choice decisions particular to Central and Eastern European Countries.

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“…U nits : dollars/M onth (12) Interest charges = interest on balance U nits : dollars/M onth (13) P ayments = interest on balance + balance payments U nits : dollars/M onth (14)…”

Section: Balance Payments = Step(credit Lim It · Sp En Din G F Ract Imentioning

confidence: 99%

“…At the beginning of the 21 st century more than a billion credit cards of all types were issued in the USA, which is the consequence of weakened requirements for getting them and an increasing number of college students who own at least one credit card [12]. Financial institutions also apply very aggressive marketing of credit cards in order to increase their use, especially by the usage of customer relationship management (CRM) [7].…”

Section: Introductionmentioning

confidence: 99%

Credit card spending limit and personal finance: system dynamics approach

Bach

Zoroja

Skok

2014

Croat. Oper. Res. Rev.

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Abstract.Credit cards have become one of the major ways for conducting cashless transactions. However, they have a long term impact on the well being of their owner through the debt generated by credit card usage. Credit card issuers approve high credit limits to credit card owners, thereby influencing their credit burden. A system dynamics model has been used to model behavior of a credit card owner in different scenarios according to the size of a credit limit. Experiments with the model demonstrated that a higher credit limit approved on the credit card decreases the budget available for spending in the long run. This is a contribution toward the evaluation of action for credit limit control based on their consequences.

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Consumers' attitudes and intentions towards credit card usage in an advanced developing country

Cited by 66 publications

References 10 publications

An Assessment of the Role of Credit Reference Bureau in Influencing Customer Credit Access in Mitigating Against Credit Default in Commercial Banks in Kenya

An Assessment of the Role of Credit Reference Bureau in Influencing Customer Credit Access in Mitigating Against Credit Default in Commercial Banks in Kenya

Effects of institutional environment and technology development on payment choice

Credit card spending limit and personal finance: system dynamics approach

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